My 1st AOR (by a college student)

After months of planning, I finally did my first aor on Dec 26, 2006. I prepared by paying down all my balances and requesting CLIs on existing cards. Then I made sure everything was updated on all my CRs before doing the aor. I wanted the CLIs to report because I was hoping the new cards will match as closely to the higher limits as possible but this didn't work out as I had hoped. My goals were to get as many sign-up bonuses as possible and to gain high credit lines to do 0% BTs.

Some background info:
Age: almost 21
HHI: 90k
Occupation: Pharmacy Clerk / Full-time Student
Debt: $0 CC; $3k deferred SL (2 installments; 1 paid off SL and the other ($3k) is deferred)
FAKOs: 750 / 760 / 760; no derogs and no inqs

Current Cards ----------- CL ----- Age
USAA Platinum MC ----- $30k ---- 6m
AMEX BlueCash -------- $23.2k -- 16m
Citi Diamond MC ------- $22.1k -- 16m
Chase Platinum V ------ $20k ----- 16m
CapitalOne Platinum V - $5.3k ---- 33m (Reported HighBalance $4,987)
Sears Gold MC --------- $1.8k ---- 28m
AE Outfitters ----------- $0.5k ---- 34m

AOR (in order applied)
Card ------------------------------- BT --------------- Sign-Up -------------- CRA ------ Result
Citi Professional MC ---------- no fee 0% 9m ---- 15k TY-pts / $40 CO ----- TU ----- Deferred
Citi AT&T Universal MC ------ no fee 0% 12m --- 6k TY-points / $30 CO --- TU ---- $8.4k (Instant)
Chase Sony V ---------------- $75cap 0% 12m --- $150 --------------------- TU ---- $3.5k (Deferred)
AMEX In:LA ------------------ no fee 0% 6m ------ $40 CO ------------------ EQ ---- $10k (Instant)
BofA Platinum V ------------ no fee 0% 6m ------ $40 CO ------------------ TU ----- Denied after deferral (insufficent history)
Citi PremierPass Elite MC ---- will move cl ------- 15k TY-pts / $33 CO ---- TU ----- $2k (Deferred)
Citi Diamond MC ------------ will move cl -------- 6k TY-pts / $30 CO ----- TU ----- $4.2k (Instant)
Chase Priority Club V -------- will move cl ------- $150 ------------------- No Pull --- $5.5 (Deferred)
Chase CashPlus MC ---------- will move cl ------- $100 (94F) ------------- No Pull --- Denied after deferral (too many recent open accts)
WaMu Platinum MC --------- none --------------- none -------------------- TU ------ $4k (Instant)
BofA Student Platinum+ V -- none --------------- none -------------------- No Pull --- $0.8 (Deferred)

CO = CardOffers.com
I applied for all the cards here, except for the Sony (SonyStyle.com), Priority Club (chase.com), WaMu (wamu.com), and BofA (bofa.com).

Results
Total New Credit: only $38.4k
Approved: 8
Denied: 2
Deferred: 1
Total applied for: 11

Inquiries:
TU: 0 -> 7
EQ: 0 -> 1
EX: 0 -> 0

Possible Bonuses:
$473
42k Thank-you Points from Citi, which is about $400 in giftcards.

Wasn't really sure what to expect from my first AOR but I'm a little disappointed at the low CLs but its probably because of my limited credit history. After reading so many incidents with AMEX and their financial review, I did not want to do anything too crazy with them hence only applying for one card and not requesting any major CLIs with them. I did the WaMu card just because I bank with them. I did the BofA Student card just to get in with BofA and will hope for something better from them in future AORs. I also did a couple of bank bonuses, BofA's $125 (offercode: THZ3) and Citibank's $200 (offercode: MGCH), which is still valid (call 1-866-810-9043 by 03/07).

For the BTs, here is the result of reallocation:
Chase Sony V -- $27k CL
AMEX In:LA -- $32k CL
Citi DPR MC -- $32.7 CL

I'm in the process of getting the cash out via the Citi DPR card.

Any feedback and suggestions for next time is appreciated, thanks.

You know, what I'm really impressed with is the credit lines you had on your existing cards, with fairly short histories, and at a fairly young age. Do you know what did the trick for you there? Did you use approx. the same household income when applying for them? It's nice how the balances on the old cards give you a lot of ammunition to use in the 0% game.

It also looks like you got approved for 3 citibank cards. Were they all personal? That would mean you got past the common "max two apps in 60 days" limitation, although the AT&T card may be in it's own fiefdom.

Also, it's curious that Chase denied you for "too many recent accounts". My only theory is that they rejected you for two many accounts with them.

Where are you going to invest the 0% money?

Why are you so anxious to trash your credit score when you're so young?? Are you going to need loans for graduate school?? Loans for a car??? Are you aware that prospective employers can pull your score when you apply for a job after graduation??

AORs are fine for old geezers who probably already have mortgages and could care less about their credit rating. Don't get sucked in by the sirens to raise a few extra bucks. Focus on your studies, get a great job, and the money will roll in on its own. JMHO.......

"These nymphs had the power, as has been already said, of charming by their song all who heard them, so that mariners were impelled to cast themselves into the sea to destruction. Circe directed Ulysses to stop the ears of his seamen with wax, so that they should not hear the strain; to have himself bound to the mast, and to enjoin his people, whatever he might say or do, by no means to release him till they should have passed the Sirens' island. Ulysses obeyed these directions. As they approached the Sirens' island, the sea was calm, and over the waters came notes of music so ravishing and attractive that Ulysses struggled to get loose and, by cries and signs to his people, begged to be released; but they, obedient to his previous orders, sprang forward and bound him still faster. They held on their course, and the music grew fainter till it ceased to be heard, when with joy Ulysses gave his companions the signal to unseal their ears; and they relieved him from his bonds. It is said that one of the Sirens, Parthenope, in grief at the escape of Ulysses drowned herself. Her body was cast up on the Italian shore where now stands the city of Naples, in early times called by the Siren's name. "

LustfortheMoment said: Why are you so anxious to trash your credit score when you're so young?? Are you going to need loans for graduate school?? Loans for a car??? Are you aware that prospective employers can pull your score when you apply for a job after graduation??

AORs are fine for old geezers who probably already have mortgages and could care less about their credit rating. Don't get sucked in by the sirens to raise a few extra bucks. Focus on your studies, get a great job, and the money will roll in on its own. JMHO.......



Well said!

markkundinger said: You know, what I'm really impressed with is the credit lines you had on your existing cards, with fairly short histories, and at a fairly young age. Do you know what did the trick for you there? Did you use approx. the same household income when applying for them? It's nice how the balances on the old cards give you a lot of ammunition to use in the 0% game.

It also looks like you got approved for 3 citibank cards. Were they all personal? That would mean you got past the common "max two apps in 60 days" limitation, although the AT&T card may be in it's own fiefdom.

Also, it's curious that Chase denied you for "too many recent accounts". My only theory is that they rejected you for two many accounts with them.

Where are you going to invest the 0% money?
I agree. How do you get such high CLI?

Anyway, I was also denied a Chase card for "too many recent credit being requested". So maybe that's a new thing.

LustfortheMoment said: Why are you so anxious to trash your credit score when you're so young?? Are you going to need loans for graduate school?? Loans for a car??? Are you aware that prospective employers can pull your score when you apply for a job after graduation??

AORs are fine for old geezers who probably already have mortgages and could care less about their credit rating. Don't get sucked in by the sirens to raise a few extra bucks. Focus on your studies, get a great job, and the money will roll in on its own. JMHO.......

"These nymphs had the power, as has been already said, of charming by their song all who heard them, so that mariners were impelled to cast themselves into the sea to destruction. Circe directed Ulysses to stop the ears of his seamen with wax, so that they should not hear the strain; to have himself bound to the mast, and to enjoin his people, whatever he might say or do, by no means to release him till they should have passed the Sirens' island. Ulysses obeyed these directions. As they approached the Sirens' island, the sea was calm, and over the waters came notes of music so ravishing and attractive that Ulysses struggled to get loose and, by cries and signs to his people, begged to be released; but they, obedient to his previous orders, sprang forward and bound him still faster. They held on their course, and the music grew fainter till it ceased to be heard, when with joy Ulysses gave his companions the signal to unseal their ears; and they relieved him from his bonds. It is said that one of the Sirens, Parthenope, in grief at the escape of Ulysses drowned herself. Her body was cast up on the Italian shore where now stands the city of Naples, in early times called by the Siren's name. "

Isn't it true that the inquires drop off in 2 years? So by the time alleni graduates, it will probably drop off by itself. He got 40k of new creit and about $800 in bonus for a few minutes of work to apply. I really don't think there anything wrong.

anyone11787 said: Isn't it true that the inquires drop off in 2 years? So by the time alleni graduates, it will probably drop off by itself.

True, but she also said: [...]
I did the BofA Student card just to get in with BofA and will hope for something better from them in future AORs.
[...]
Any feedback and suggestions for next time is appreciated, thanks.

...which makes me think this isn't a one-time thing, and she isn't going to freeze all AORs in the near future to save from any potential negative impacts on her credit record.

Hey, if she can swing it, more power to her. Sometimes we need to be saved from ourselves, though.

Good for you, OP. Keep up the great work, stay focused on getting a rock-solid education, and read what LustfortheMoment wrote as a cautionary tale -- don't want to get too swept up in this and end up trashing all you've worked so hard to build.

drenader said: Are you a graduating senior? I would worry about fafsa implications if you receive any financial aid.

I'm a third year. I've already completed my FAFSA application. I was told by another FWF poster that it just asks how much is in your checking/savings at the time of application, which had no BT money at the time.

Ron515 said: Lust, how long does it take to clear the credit score back up? He only has to clear inquiries, right? Sorry but I don't see the big deal. I'm impressed at how financially savvy he is at his age. Good job dude!

Thanks. About the inqs, I didn't get hit with any on Experian, the inqs on TU and EQ should bump off over time. I use TrueCredit to keep track of my CRs.

alleni said: Hi, I'm a guy. "alleni" stands for "allen iverson"

Ah, The Answer. Hoya Saxa. Interesting how everyone assumed you were male 'til now though, eh?

I'm certain I won't do another AOR until all that stuff is done. Even if I have to wait 4-5 more years before the next AOR, I don't mind. This was fun but I know that messing up can mess up more important things for me.

Super. Sounds like you've got a good plan.

RE the high CLIs, were you able to get these by perhaps adding yourself as an AU on your mother's or grandmother's accounts early on -- say, several years ago? I have a CC on my credit report that was officially opened one year before I was born. Mystified at first, but then realized that my dad had added me as an AU to this card when I was in high school... and so I never removed it. I get CLI offers all the time, and my FICO is damn near perfect and about 50 points higher than that of a peer who has nearly the identical background, payment profile, etc. *except for* the early AU history. So my current crackpot theory is, your CLIs probably benefited from your early AU history.

Any other insight into the high CLIs, or care to trash my theory?

Nice job. Be on the look out for a financial review with American Express though. I believe anything over $25k with AMEX is a huge trigger for FR. Also, a good way to cash out your AMEX BT is to take out a large BT with Citi (they will send you a check in your name), cash the check, then request a BT from AMEX to your Citi card. Once it posts to your Citi Card you can request another check very easily. This is how I did it and it went very smoothly. Good luck!

sumeyedea said: FloorsMat said: Nice job. Be on the look out for a financial review with American Express though. I believe anything over $25k with AMEX is a huge trigger for FR. Also, a good way to cash out your AMEX BT is to take out a large BT with Citi (they will send you a check in your name), cash the check, then request a BT from AMEX to your Citi card. Once it posts to your Citi Card you can request another check very easily. This is how I did it and it went very smoothly. Good luck!


so I'm kind of confused, your saying you did 2 bt w/ citi... but isn't the promotional bt offer only good for the first one, or are you allowed to do as many bt's as you want w/ in the time of the promotional period?

Yes, you can do as many BT as you want under the promo terms until the offer expires. You can do all of this online and it will tell you what the terms are (0%, no fee)

Ron515 said: Lust, how long does it take to clear the credit score back up? He only has to clear inquiries, right? Sorry but I don't see the big deal. I'm impressed at how financially savvy he is at his age. Good job dude!

Umm... I think you're missing the boat here. The inquries are not the problem. Its the tons of available debt he can run up. Nobody is going to give him a mortgage, car, or any other type of loan when they take a look at how much debt he can run up. If I read his post correctly, he has the potential to run up $141,300 in debt. The banks will laugh at him if he tries to get a loan for something.

Incarnate said: Ron515 said: Lust, how long does it take to clear the credit score back up? He only has to clear inquiries, right? Sorry but I don't see the big deal. I'm impressed at how financially savvy he is at his age. Good job dude!

Umm... I think you're missing the boat here. The inquries are not the problem. Its the tons of available debt he can run up. Nobody is going to give him a mortgage, car, or any other type of loan when they take a look at how much debt he can run up. If I read his post correctly, he has the potential to run up $141,300 in debt. The banks will laugh at him if he tries to get a loan for something.

Wrong, simply wrong. Never had a mortgage lender mention my lines, request any be closed, or offer me rates other than what's advertised. Have a PenFed first in process now, will close on a 5/1 ARM @5.25% interest only in about 10 days.

062703 said: Incarnate said: Ron515 said: Lust, how long does it take to clear the credit score back up? He only has to clear inquiries, right? Sorry but I don't see the big deal. I'm impressed at how financially savvy he is at his age. Good job dude!

The banks will laugh at him if he tries to get a loan for something.

No they won't.
You're right. I don't know what I was thinking. They'll gladly approve a mortgage loan for $200,000 when they see that he can run up $140,000 in debt the next day.

I have no plans on selling this home. Why would you wish those transaction costs on me? Oh I get it, you're a victim of the ARM 'fear factor' that makes people pay big bucks in premium costs for a fixed rate mortgage. Bet your scared of interest only loans as well. Sorry, having a higher required payment is the true risk since these mortgage lenders won't accept partial payments. There is no rule that I can't pay on the principle if it ever makes financial sense to do so. That being so unlikely I have a hard time coming up with a potential scenario with a valid financial reason to do so. The only thing that really annoys me about refinancing is having to let a stranger come into my home. Other than that, it's just paperwork.

so how much of that 90k HH can u really show when fr comes knocking? lol I hope you dont plan to buy a car anytime soon either

WalStMonky said:

Wrong, simply wrong. Never had a mortgage lender mention my lines, request any be closed, or offer me rates other than what's advertised. Have a PenFed first in process now, will close on a 5/1 ARM @5.25% interest only in about 10 days.
But you have a previous mortgage borrowing history. Could things be different for a first time borrower?

WalStMonky said: I have no plans on selling this home. Why would you wish those transaction costs on me? Oh I get it, you're a victim of the ARM 'fear factor' that makes people pay big bucks in premium costs for a fixed rate mortgage. Bet your scared of interest only loans as well. Sorry, having a higher required payment is the true risk since these mortgage lenders won't accept partial payments. There is no rule that I can't pay on the principle if it ever makes financial sense to do so. That being so unlikely I have a hard time coming up with a potential scenario with a valid financial reason to do so. The only thing that really annoys me about refinancing is having to let a stranger come into my home. Other than that, it's just paperwork.
I don't mean to drag this further off topic. (Although maybe it is on topic, because you shouldn't accept advice from some people )

'fear factor'? It has nothing to do with fear. It has to do with fact. Your loan will be locked in for 5 years, then it will go up each and every year if they so please. You can also pay extra on the principle on a 30 year fixed, so I don't know why you are bringing that up. You will still end up paying who knows what interest rate in 5 years - 7%? 8%? More? You can get a 30 year fixed loan for 5.625% today, and that rate will be the same in 20 years, and you can pay extra priciple to save money if you wish.

scott1961 said: Ron515 said: Lust, how long does it take to clear the credit score back up? He only has to clear inquiries, right? Sorry but I don't see the big deal. I'm impressed at how financially savvy he is at his age. Good job dude!
Inquiries will fall off and score will recover but the thing I wonder is how all those cards would affect a future mortgage? I have never done a mortgage so don't know much about them. When OP goes for first mortgage would having dozens of open cards affect the decision making? Open lines can be considered future debt and I would think that would make some lenders nervous

Yeah, I've read about this and just figured I could talk to the lender and come to an agreement to get my lines lowered for the mortgage/loan. The replies seem to say this wouldn't be a problem though.

Small update:

Approved for the Citi Professional (1k) so that makes 4 Citi approvals. I have received all my cards with Sony the quickest (01/03) and the PremierPass and Professional last (today).

Requested a BT, two days ago, with the In:LA card over the phone (24k) to be sent to the DPR card and is currently pending. Will request a BT with Sony as soon as I clear the DPR balance with a check.