I am a newbie to the board and to the whole concept of AOR's. However, I've done some research and I am definitely looking to pull the trigger on my first AOR within the next couple of weeks. With that said, I am hoping to get some help and suggestions from the experienced. Here are my vitals:
Age: 20 (junior undergrad student) Credit Age: 2 years (got my first credit card when I turned 18) Credit Score: 737 (from TrueCredit 30 day free trial) Household Income: $120,000 Extra Info: I currently live at home and have been an authorized user on my parents' credit cards since I was 16.
Goals: 1. To make some extra cash on BT's 2. To build credit history and increase my FICO score (I know I will take a short term hit by doing an AOR) 3. Cash in on some extra bonuses that the banks are giving
Credit History: Citi Simplicity - $9,000 limit Discover CashBack Bonus - $1,250 limit 3 Merchant Cards - $1,000 limit on each
So far I plan to apply for up to 10 credit cards. Here is my current list of cards I plan to apply for, but I need your help for more:
1. Citi mtvU 2. Bank of America Visa LINK 3. American Express IN:LA Card 4. Citi Upromise (not sure if this applies to Citi's 2 card per 60 days policy)
Please help me out with some more. I'm definitely looking for cards with 0% as well as no fees on BT's. Any suggestions would be useful as I begin my App-O-Rama. Thanks in advance.
You need to wait a few years, man. Your credit history is much too short to qualify for any high credit limits. Wait another 3 or 4 years, when your credit limits are more like 20k instead of 9k. That is when you can make good money. I am a college junior as well, with a 2 year old credit history. I would love to do an AOR now but there is no point because I won't get any decent credit lines. Wait a few years so that you can truly profit.
Remember tho, you will need to hold off on the AOR if you are looking to rent a place, apply for car insurance, get a car loan, personal loan, etc. (because the AOR will put a dent in your credit history for one or 2 years)
wiredspider said: Why not? He can use the higher HHI to get some decent lines.
You can check out my AOR from a few months ago here. I had even less credit history than the the OP.
Are you sure? Heck, then I might as well jump into the AOR game now, since my HHI is around 105k.
But the reason why I doubt all this is because 2 years of credit history is not enough to get accepted for most 12 month BT cards. Some might accept you, but most will not. Creditors keeps telling me that my credit history is too short even when I request a CLI.
And despite my HHI of 105k, are they gonna give me 15k credit lines? I doubt it. Credit history is too short and they might also not like the student loans.
wiredspider said: You can check out my AOR from a few months ago here. I had even less credit history than the the OP.
I looked at your AOR and you got a lot of deferred apps. Also, you got a total credit line of around $65,000. Shouldn't I wait a few year so that I can get a total credit line of $150,000? That will bring in much more interest than 65k.
TheThinker said: wiredspider said: You can check out my AOR from a few months ago here. I had even less credit history than the the OP.
I looked at your AOR and you got a lot of deferred apps. Also, you got a total credit line of around $65,000. Shouldn't I wait a few year so that I can get a total credit line of $150,000? That will bring in much more interest than 65k.
Well, new cards, bigger limits, reallocate lines to maximize the 0% promos... if there are any then.
Anyways, just signed up for the freebies, going to China courtesy of Citi. Spending money courtesy of Chase and AMEX.
after applying for 25 cards, are you sure you wanna do a 2nd AOR someday? Won't it be weird having a credit report with 50 credit cards listed on it? And besides, won't it be a hassle managing all those cards?
thinker, you really need to read the AOR threads. there are multiple people here approaching or exceeding 100 cards. I have never had a lender concerned with all the accounts, and they are not a hassle to manage.
TheThinker said: after applying for 25 cards, are you sure you wanna do a 2nd AOR someday? Won't it be weird having a credit report with 50 credit cards listed on it? And besides, won't it be a hassle managing all those cards?
Don't make me do all the thinking here.
Collect rewards, determine which cards are worth keeping, reallocate lines if possible from cards that will not be used, close those cards.
SUCKISSTAPLES said: thinker, you really need to read the AOR threads. there are multiple people here approaching or exceeding 100 cards. I have never had a lender concerned with all the accounts, and they are not a hassle to manage. ...and all the mail makes you seem important.
SIS, I realize some people on here have 100 cards. But isn't that overkill? When lenders pull your credit report, are you sure they won't find it highly unusual that one person has 100 cards? Maybe you didn't have any trouble but I still find it hard to believe that I can have a credit report filled with 100 cards and not raise any red flags.
djspray said: ...and all the mail makes you seem important.
Good point. Getting 50 account statements each month? That's a bit crazy. Are a few thousand bucks interest worth a credit report filled to brink and a mailbox stuffed like crazy? Even if you opt for e-Statements, that's a lot of email!
TheThinker said: djspray said: ...and all the mail makes you seem important.
Good point. Getting 50 account statements each month? That's a bit crazy. Are a few thousand bucks interest worth a credit report filled to brink and a mailbox stuffed like crazy? Even if you opt for e-Statements, that's a lot of email! I dont mind sorting through mail when I see this every month . With lots of accounts, and high credit lines, you can be making a few thousand in interest per MONTH, not per year. For me, its enough to pay the mortgages on 2 of my homes. If you have that many cards, you build credit lines substantial enough to start making serious cash.
TheThinker said: djspray said: ...and all the mail makes you seem important.
Good point. Getting 50 account statements each month? That's a bit crazy. Are a few thousand bucks interest worth a credit report filled to brink and a mailbox stuffed like crazy? Even if you opt for e-Statements, that's a lot of email! You only get bills for cards that you use, and sometimes they even cancel small amounts(see here). It's not really as bad as you'd think, all the solicitations for new cards and offers are more of a pain to sift through...until you strike gold.
Freno911
Senior Member
posted: Jul. 20, 2007 @ 8:33a
TheThinker said: Are a few thousand bucks interest worth a credit report filled to brink and a mailbox stuffed like crazy?
Gotta love when someone comes on FWF, asking if "a few thousand bucks" is worth __________ (insert minor inconvenience here).
I still stop and pick up pennies on the ground!
kittenmittens
Frivolous Member
posted: Jul. 20, 2007 @ 8:47a
TheThinker said: I looked at your AOR and you got a lot of deferred apps.What does it matter if it's instant or deferred?
TheThinker said: Also, you got a total credit line of around $65,000. Shouldn't I wait a few year so that I can get a total credit line of $150,000? That will bring in much more interest than 65k.Doing some back of the envelope math it looks like 5% of 65k is only $3250 - you're completely right, Thinker, it's best to leave that alone and wait around a couple of years.
For the OP: there's a list of good 0% offers linked on the first page of the AOR thread. Start your research there.
collegecash
New Member
posted: Jul. 20, 2007 @ 9:18a
One of the main reasons I want to do an AOR is to build credit history. I'm not trying to go all out and to get $100k of credit right off the bat as I know thats unlikely. I'm hoping for around $30k to $50k in credit that I can dump into a high yield savings account. Also, I won't be renting a house, buying a car, or taking out a loan for at least the next year to 2 years.
But back to the subject, does anyone have any other suggestions for me?
MikeR397
Senior Member - 3K
posted: Jul. 20, 2007 @ 9:33a
Q=TheThinker]djspray said: ...and all the mail makes you seem important.
Good point. Getting 50 account statements each month? That's a bit crazy. Are a few thousand bucks interest worth a credit report filled to brink and a mailbox stuffed like crazy? Even if you opt for e-Statements, that's a lot of email! Just enroll in online statements if you don't want the mail. Then use Yodlee to manage everything. Yodlee really is a godsend for an AoR'er. I'm currently managing 40 credit cards via Yodlee right now and this number will increase to around 70 cards (not all my cards, 2/3 are parents) in another month. Here is my first AoR post and some cards for you: My first post. Here is a quick summary of how to get the $: How to get the $
Also, look for lhendricks92 and thisguy's AoR posts. They are very well laid out and will give you lots of ideas on cards. Good luck.
Incarnate
Senior Member
posted: Jul. 20, 2007 @ 9:54a
collegecash said: One of the main reasons I want to do an AOR is to build credit history. Dude, an AOR does not help you build credit history. Time helps you build a credit history. You're playing with fire at such an early age.
MikeR397
Senior Member - 3K
posted: Jul. 20, 2007 @ 9:55a
Incarnate said: collegecash said: One of the main reasons I want to do an AOR is to build credit history. Dude, an AOR does not help you build credit history. Time helps you build a credit history. You're playing with fire at such an early age. I'm thinking you might need to go read some more posts if this is what you believe. An AoR helps you build credit history very, very well.
kittenmittens said: Doing some back of the envelope math it looks like 5% of 65k is only $3250 - you're completely right, Thinker, it's best to leave that alone and wait around a couple of years.
Alright, maybe I should start playing the AOR game. One reasonable concern tho, won't the extra income lower my financial aid? I still have 2 years of college left, and will most likely go to grad school as well.
MikeR397
Senior Member - 3K
posted: Jul. 20, 2007 @ 10:15a
TheThinker said: kittenmittens said: Doing some back of the envelope math it looks like 5% of 65k is only $3250 - you're completely right, Thinker, it's best to leave that alone and wait around a couple of years.
Alright, maybe I should start playing the AOR game. One reasonable concern tho, won't the extra income lower my financial aid? I still have 2 years of college left, and will most likely go to grad school as well. If you make a lot of income, possibly, but I wouldn't worry too much unless you make more than 5k. Also, do the math, if you lose your subsidized stafford loan, how much is is costing you vs how much are you earning after taxes for your AoR. It is a little risk, but I think you should be fine making under 3k more.
I agree that it is harder to get higher limits when starting out fresh and not a very long credit history (although not impossible). IMO, since having old accounts is good for your score work on getting several cards first so you can start out a little ahead on that side. After that work on getting CLIs on those existing cards. Then, once you have decent lines do a AOR for purposes of the 0% game.
Think long term, don't look to get into BT game right away. Learn what you can here and set yourself up so that in several years you can get in and have a better shot at getting those higher CLs.
I'm just out of college and I did a mini AOR last October so that I could get several lines to age. Now, I'm focusing on building the CL on those accounts. Eventually I will do another AOR to take advantage of the BT game, but not anytime soon.
cardjuggler
Senior Member
posted: Jul. 20, 2007 @ 10:31p
collegecash said: But back to the subject, does anyone have any other suggestions for me? Read more AOR threads! There are tons of good ones, including college students and recent grads.
collegecash
New Member
posted: Jul. 20, 2007 @ 10:38p
Incarnate said: collegecash said: One of the main reasons I want to do an AOR is to build credit history. Dude, an AOR does not help you build credit history. Time helps you build a credit history. You're playing with fire at such an early age.
I'm building relationships with banks and as long as I don't default on any of these cards it should help my score. The longer I keep them open, the better. I know when I apply for them I will take a hit because all the banks will be pulling my credit, but after about 6-8 months it should be back to normal.
Tickertracker
New Member
posted: Jul. 21, 2007 @ 3:56a
Watching with interest.
OP, I'm in a similar situation. Have you considered preparing a two-stage AOR and just aborting the second stage if it isn't looking good? The first stage would be applying for a few cards aimed at getting higher CLIs in the long term. Things like AMEX, cards you can reallocate, etc. You can see what kind of credit lines you are getting approved for. If it goes well you can fire the second barrel. This is something I'm considering.
Hatsuharu
Member
posted: Jul. 21, 2007 @ 6:36p
I'm also in a VERY similar situation (19-soon to be 20, junior in college). I have 4 cards, one AMEX Blue Cash with a limit of $20k+ and the rest ~$5k (c1, chase, bofa).
Although MY credit history is only a little more than a year old, I've been an AU on my parent's primary card since 1999. So my credit history is a bit more "aged" compared to most college students.
I'm thinking about doing an AOR so that by the time all the BTs are paid off, I'll have recouped most, if not all, living expenses for the upcoming school year. That's the intent anyway. I'll be following this thread. If anyone has specific questions/comments for me, I can address those as well.
If I don't go all out and do an AOR, would it be smart to just do a BT on two of my newer cards that I have yet to receive and just collect a few hundred (maybe a bit more) by year's end?
Also, has anyone ran into any sort of trouble by including parent's income in HHI? I've read that generally speaking it should be okay - but if someone could confirm that, it would be great.
collegecash
New Member
posted: Jul. 22, 2007 @ 4:27a
I think you and I are very similar. I've been an Authorized User on my parents accounts since i was a Freshman in HS, so basically since about 2000 or 2001. My parentals have near perfect credit and always pay their balances in full. I believe this has helped my credit, as the first credit card (AAdvantage Citi) I ever got had a limit of $14,000. I stupidly cancelled that card because I did not want to pay the annual fee. But with the knowledge I have today, I would have never cancelled that card...especially since it was the oldest card I had at the time.
I've done some more research and I am planning to apply for only about 5 to 7 cards. I will only be doing "no BT fee" cards and this can be considered a "nano" AOR. By my estimates I should be able to get somewhere between $20k to $40k in credit. For my goals, this works for me. It will allow me to make some extra spending cash and it will also allow me to build credit history, which will be very important 5-10 years from now when I want to buy a new car or when I want to make my first home purchase.
Also, regarding the Houshold Income...from what I have heard as long as you live with them and they are willing to help you out if you default or can't make payments, it is fine to include. I don't think credit card companies are that strict, but then again, I have never tried to beat the system.
I'm planning on starting my "Nano AOR" in the next week or so. I am continuing to do a lot of research and will start when I feel confident. I'll keep you all posted.
If you could post the cards your looking at i would be curious as i am considering doing it too as a 20 yr old college student...
Hatsuharu
Member
posted: Jul. 22, 2007 @ 9:54p
If you get 5-10k limits on your new cards, what % of those limits do you plan on BT'ing?
collegecash
New Member
posted: Jul. 22, 2007 @ 11:47p
I won't BT more than 89%. After reading many posts on this forum as well as information from other sites, it seems like 89% is the widely respected maximum.
For the other poster, here are the cards I'm planning on applying for:
1. Citi mtvU 2. Bank of America Visa Platinum Plus 3. Citi AT&T 4. American Express IN:LA
These 4 so far. All of these have no BT fees involved, which maximizes profit. Citibank offers a lot of cards with no fees. I'm still looking for a couple more to apply for before I make the dip.
bauzer71487
Greedy Member
posted: Jul. 23, 2007 @ 12:02a
collegecash said: I won't BT more than 89%. After reading many posts on this forum as well as information from other sites, it seems like 89% is the widely respected maximum.
It depends on the issuer. I've had my citi Drivers Edge 0% max'd out at 100% for the entire BT so far - with another 5 months to go. As soon as minimum payment posts - I call and request what I paid in a BT check. . hasn't had any adverse actions other than my short term CR.
strange0kiddo
Senior Member
posted: Jul. 27, 2007 @ 6:38p
I just read about the AOR today! Sparked my interest! Tell me how it goes collegecash!
I'm 19 going on 20. Have had a joint bank account since freshman year of high school. Now got accounts with Wachovia, ING Direct, and E*Trade. Actually just applied for my mtvU card, got a 3000 credit. 2000 on my university card. Might try a very very super small AOR with that one account and see how it goes seeing its interest free for 6 months.
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