Brandon Elliott, Owner of Credit Counsel Elite
Applying for multiple credit cards simultaneously, often referred to as “mass applying,” requires strategic planning and a deep understanding of credit scoring and bank policies. The team at Credit Counsel Elite teaches its members the process in depth. With this guide, the team wanted to outline some of the important aspects of the process with essential tips and insights to enhance approval odds, maintain a robust credit profile, and establish fruitful bank relationships. This is certainly not exhaustive, and to conduct a mass apply, knowing only this information would be foolhardy. Their process is complex and nuanced, requiring personalized expert advice, which has helped clients obtain up to $500,000 in credit lines at 0% interest. This has taken years to refine and is constantly evolving, but the following fundamentals have remained consistent.
- Bank Relationships: Cultivating a solid relationship with banks is crucial. Start by opening a personal checking account with the bank intended for credit card applications. Expanding the relationship with various accounts and substantial funds can significantly boost approval chances and lead to larger credit lines. Credit Counsel Elite has clients who have had solid relationships with banks, obtaining single cards with limits of $100,000 and more. A bank relationship can be akin to a romantic one – to attract the affection of someone, one needs to present oneself in the best way possible to prove worth. While a good bank relationship is beneficial, it does not guarantee approval success.
- FICO Score and Understanding the Six Boxes of Credit Scoring: The FICO score, which ranges from 300 to 850, is a critical determinant in credit applications and is influenced by six key factors:
- Payment History: Consistently making on-time payments is crucial.
- Credit Card Use: Aim for a credit utilization rate between 0-9%.
- Derogatory Marks: Avoid actions leading to collections, bankruptcies, and other derogatory marks.
- Credit Age: A longer credit history is beneficial.
- Total Accounts: Diversify credit accounts.
- Hard Inquiries: Minimize the number of hard inquiries.
These six factors have different levels of influence on the FICO score, ranging from only a negative impact for Derogatory Remarks to 35% of the total score related to Payment History. None of them can be ignored and should be thought of as links in a chain; the weakest is the limitation.
- 3. Bank Rules and Policies: Understanding the specific rules and policies of each bank is crucial. Some banks may limit the number of credit cards one can have, while others may have particular requirements for approval. These rules are vital for Mass Apply; ignoring them is a sure way to an unsuccessful Mass Apply and could lead to disaster in one’s credit score. The most touted bank rule is Chase’s 5 in 24 rule, which states that if one has five or more new credit cards in the past 24 months, one will not be approved for a 6th. While this is an unstated rule, in most cases, it holds true.
- 4. Maximizing Approval Odds: Ensure one is application-ready with a correctly ordered list of credit cards. Strive to join the “800 club” by maintaining a credit score above 800; chances of approval will stay high and access to the best cards and other loan products, such as low-interest mortgages, will be available. Credit experts at Credit Counsel Elite teach special techniques to maximize success while minimizing potential credit score damage.
- 5. Income and Employment Verification: Banks may verify stated income and employment, so be prepared to provide documentation if requested. These are usually requested when a lender is not sure about one’s approval. While this is not always a standard procedure, having the information available immediately can increase approval odds.
- 6. Timing and Frequency of Applications: Clients are taught how to submit all of their applications within a 30-day window, using advanced techniques to ensure minimal impact on their credit scores. This has proven to give clients the most success, with some obtaining lines surpassing $500,000. As new accounts show up on the credit report, chances of approval go down; therefore, the process is done expeditiously.
- 7. Considering Balance Transfers and Introductory Offers: Evaluate financial goals to determine if credit cards with balance transfer options or introductory offers align with objectives. Many clients use these cards and other offers to build wealth from nothing, flipping the script on the banks; borrowing money at 0% interest. Ensure understanding of what is being offered and any fees involved.
- 8. Communication with Customer Service: Maintain proactive communication with bank customer service, especially if issues arise. Utilize strategies to enhance approval chances, obtain the biggest credit lines, and overturn denials.
Final Thoughts
While this guide provides a foundational understanding of mass applying for credit cards, it is crucial to acknowledge that without comprehensive knowledge and expert advice, one risks damaging their credit score. Always seek professional guidance to ensure a successful and secure credit application journey.
Look for the next article in this series about credit cards with annual fees, where the team will delve into maximizing the benefits that these cards can provide.
Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Consult a financial expert tailored to specific circumstances before making any financial decisions.
