Applying for multiple credit cards can be a smart move for many people, but the resulting hard inquiries on your credit report can temporarily hurt your credit score. Did you know that it's possible to apply for multiple credit cards with just one inquiry? In this article, we'll break down the process and strategies you can use to minimize the impact on your credit score when applying for new cards. Let's dive in!
How To Apply For Multiple Credit Cards With One Inquiry Table of Contents
Why Multiple Credit Card Applications Matter
There are several reasons why someone might want to apply for multiple credit cards simultaneously:
- Maximizing credit card rewards and signup bonuses
- Consolidating debt with balance transfer offers
- Improving credit utilization by increasing available credit
However, each credit card application comes with a hard inquiry, which can temporarily lower your credit score. The good news is that there's a strategy to apply for multiple credit cards with only one inquiry, and it's called app-o-rama.
Understanding App-O-Rama and Its Benefits
App-o-rama refers to the practice of applying for multiple credit cards on the same day or within a short time frame. The idea is that credit bureaus won't register the inquiries in time, resulting in a single inquiry on your credit report. Here are the benefits of using this strategy:
- Minimize the impact on your credit score
- Increase your approval chances (since potential lenders won't see multiple inquiries)
- Taking advantage of multiple welcome offers and rewards
How to Plan and Execute Your App-O-Rama
To maximize the benefits of an app-o-rama, follow these steps:
- Research credit card offers: Choose the cards that best suit your needs and financial goals. Make sure you can meet the spending requirements for the signup bonuses.
- Check your credit report and score: Ensure that your credit score is high enough for the cards you want to apply for. Also, check your credit report for any errors that may decrease your chances of approval.
- Organize your applications: Decide on the order in which you'll apply for the cards, starting with the ones with the strictest approval requirements.
- Apply in one sitting: Complete all applications, either online or over the phone, in a single session. This increases the likelihood of a single inquiry showing up on your credit report.
Please note that the app-o-rama strategy may work better with some issuers than others, as some lenders may report inquiries quicker than others.
How To Apply For Multiple Credit Cards With One Inquiry Example:
Imagine that you're looking to apply for three credit cards to maximize rewards – the Chase Sapphire Preferred, the Discover it Cash Back, and the Citi Double Cash card. After checking your credit score, you decide to move forward with the app-o-rama strategy.
You create a plan:
- Apply for the Chase Sapphire Preferred first, as it has higher approval requirements and you want the valuable travel rewards.
- Next, apply for the Discover it Cash Back for its rotating 5% cashback categories.
- Finally, apply for the Citi Double Cash card to earn consistent cashback on all other purchases.
By applying for all three cards in the same sitting, you're increasing the likelihood that only one inquiry will show up on your credit report.
Now that you know how to apply for multiple credit cards with one inquiry, you can confidently explore and take advantage of the opportunities that come with maximizing credit card rewards and signup bonuses. Remember to consider your financial goals and always practice responsible credit card usage. If you found this article helpful, be sure to share it with friends and explore other Flik Eco guides to improve your personal finance knowledge.
