Anyone else apply for credit cards for fun and PROFIT?

[NNN0LHI]

I do. Anytime I see the credit card offers where they give you anywhere from $20.00 to a $100.00 in credit or cash for applying for their card and being accepted I apply. These offers are everywhere if you look. Just about all gas stations and stores have something like this.

I got a Shell card yesterday where I had to make at least four purchases totaling $20.00 in the next 60 days they put a $25.00 credit on the card. Right after I activated the card I ran up to Shell and put three $5.00 purchases and one $10.00 purchase on the card right at the pump and filled my tank up. When I get the bill next month reflecting those purchases and the $25.00 credit I will call and cancel that card. The month after that I will wash and repeat. Just dropped another application into the mail today from BP for a $20.00 credit.

Money for nothing and tax free to boot. Something to keep a retired guy like me occupied and out of trouble. Anyone else do it?

Don

[sweetladybug]

You sound like a smart guy. You're beating these crooks at their own game

Just be careful and make sure they aren't charging you an activation fee or yearly fee (these crooks are slick)

[NNN0LHI]

11. Never owned or applied for a card that had activation or yearly fees

And I am not going to start now.

Don

[Technowitch]

1. That's a certain way to screw up your credit history, friend

Every one of those cards will show up on your credit records, and they stay there for an eternity, even after you close the account.

Some major lenders could see this as an indication of fraud (even though it's not).

More to the point, for a younger person just getting started, this is the sort of thing that could cause a mortgage application to be rejected. Or housing/apartment rental to be denied.

Just sayin'.

[Jacobin]

5. It'll definitely ding your credit

having multiple credit card applications, even if you cancel them.

[Worst Username Ever]

7. You are correct.

But more specifically, it f*s up your credit score. Too many revolving accounts with not enough of a duration brings the score down, as it indicates that you are not "loan-able." Ideally, you do not want more than 5 credit card names showing up on your credit report. Also, every time you apply for a card, a credit check is run on you.. too many credit checks also brings your score down, as it indicates that you are applying for but not using loans.

[NNN0LHI]

13. Explain my consistent 800+ credit score then?

And for those that don't know, a credit score of 850 is as high as it goes. And no one gets an 850. Mine runs about 825.

Don

[Jacobin]

52. Congrats on your score

I was told by a banker friend of mine that when a company checks your credit to issue a card, the score gets 'dinged' and that applying for and cancelling too many cards also causes dings regardless of payment history.

I don't know that for a fact, just repeating what he told me. He's been in the commercial lending business for more than 20 years, so I didn't think he made it up.

Anyway, its not hurting in your case obviously.

[NNN0LHI]

53. Perhaps it may?

But with an 800+ I can afford a ding now and then. I am pretty sure all the little dings this may be would ever add up to the effect of just one account going delinquent.

Now for someone who already has a marginal score these little dings may mean something? But I suspect this wouldn't add up to a hill of beans for someone who has never been late paying a bill in their entire 50 year credit history even once as they do look at the entire picture when scoring someone. And thanks for the compliment.

Don

[LynneSin]

57. If you've only started doing this, that's why it's 825

However, it's a long term thing. Things that loan officers will look for on loans is how many credit cards you have had and how many times you've applied for any sort of credit. The fact that you aren't a perfect 850 means there is something affecting your score. When I went for a pre-mortgage approval the first thing my loan officer asked was why about the dings on credit checks (They came from one of those online loan approvers and I had considered switching car insurance). She said I was fine for a loan, but recommended not opening up any new lines of credit or have any unnecessary credit checks until after I bought the house (Which I've put off for about 6 months now).

Everything that folks have said is true about opening up too many lines of credit but it may never affect you in the long run if you aren't looking to purchase a home in the next couple of years. You won't dip to 400 overnight, but you may notice a slight decrease in that score if you continue doing it.

On the brighter side, when credit card companies start noticing how you are quickly opening & closing accounts, they'll probably drop you off of their mailing lists. Believe it or not, they catch those things too!

And one final note - you've mentioned you're a retired person so enjoy yourself. This is just not something I would recommend to others especially those who are starting to build credit and may be looking into buying a home!

[NNN0LHI]

60. See post #8. I've already said I have been doing this for years and years

And my credit score still has consistently held above 800. As for the companies dropping me from the mailing lists I have also already mentioned in post #1 that these offers are found at most gas stations and stores so I do not rely on them being mailed to me. And as I have pointed out in an earlier post no one ever gets a perfect 850 credit score. Anything above 800 is pretty much considered as good as its going to get for anyone. Take care.

Don

[NNN0LHI]

8. Been doing it for years and years

My credit rating score consistently stays in the 800+ range. I watch it. And that is with a modest combined income here of less than 40 grand per year. Never had a late payment or failed to pay a bill in my life. I am now 50 years old. So I will keep doing it.

Don

[captain crunch]

21. you must be doing something right if your retired at 50 .

[NNN0LHI]

22. I began working at Ford when I was 18 and still in high school

My friends were all out partying their asses off while they were working some shit part time day job. They used to make fun of me when I had to go to work on the 3rd shift (afternoon shift) and sweating my ass off in that hot and noisy stamping plant usually 12 hours a day and either 6 or 7 days a week.

I can remember asking my supervisor if I could have two days off to go to my graduation and my prom when I couldn't be AWOL a single day because I was still in my 90 day probationary period. He said take your pick, one or the other. I chose to go to my high school graduation and felt damn lucky I was able to attend that. All of those friends who used to make fun of me back then are still working somewhere...or in jail.

Don

[amazona]

44. Don is right, ya'll

We have the classic conflict between those who do and those who have merely read the theory.

I do what Don does and have had the same positive experiences that Don has had.

They are leaving free money on the ground, and people are dreaming up excuses not to pick it up? Come on, ya'll, educate yourselves. Bad credit comes from paying late or not at all. It doesn't come from participating in the credit card companies' very own promotions!

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[amazona]

43. no it really doesn't, though

I've done this for many, many, MANY years -- pretty much ever since I've had a credit card -- over 2 decades now. Had no trouble buying a house except for the usual hassle documenting income because I'm self-employed. Credit card companies want you to believe it hurts your credit so you'll stay "loyal" but not so in practice. If you pay your bills on time, DEFINITELY they want to sell you a house, after all, the house is collateral. Credit cards by contrast are unsecured credit! Anyone who can juggle credit cards expertly is a terrific risk for a mortgage, even if their income is irregular.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[Must_B_Free]

2. Do you keep track?

I would need a spreadsheet.

And still, it's a bit of work for a few bucks, but I like the idea.

[NNN0LHI]

14. It takes a little time but being retired I am not short of spare time n/t

[NYCGirl]

3. They'll just sell your name and address and other info to other marketers

and make back much more than the $25 you cost them.

[The Gigmeister]

4. You're wrecking your credit rating.

Both with all the cards that will be under your name (And then cancelled, like you say you do) and by all the credit checks being ran on you.

[LiberallyInclined]

9. not everyone trembles before the altar of 'good credit'...

when you're retired, own your own home, and buy cars for cash- who gives a rat's ass about a credit rating?

[NNN0LHI]

10. You got it brother n/t

[uppityperson]

17. Exactly, no worries about credit score. I do this too.They offer, I accept

I am on the low income side of the coin, but owe little every month. I have a small mortgage and don't pay for things I can't buy outright, usually. So what if it shows up on my good credit account thingy? I pay everything on time and have enough available credit as it is to cover emergencies. Unless it's a huge emergency in which case I'd be messed up anyway and unable to get credit anywhere.

[NNN0LHI]

15. When a card is closed by the person holding the card it does not...

...advesely affect ones credit score. Don't know where you would get that idea from?

Don

[The Gigmeister]

31. The fact that you had and then cancelled the card is what matters...

...when you've had and cancelled so many.

[NNN0LHI]

32. It doesn't appear to bother them in the slightest

Otherwise they certainly wouldn't still be issuing me credit cards every time I apply for one. I have never been turned down for one that I have applied for in my life. And my credit score surely wouldn't be above 800 if this were somehow adversely affecting my credit rating either. Can you explain why that would be the case?

Don

On edit: My father once told me something many years ago that seems to hold true to this day. He said the strange thing about obtaining credit was that people who really don't need credit can always get it, while people who actually need it cannot.

[SoCalDem]

6. My husband got $75 from Union bank for opening an account

He just put his bonus in it, and was very happy to get the extra $75..although they did 1099 him for it :)

[libertypirate]

12. Sorry dude you can't defeat dishonesty with more dishonesty

Even when your getting fucked by them...

Dishonest personal behavior makes others dishonest behavior less of a problem.

We are already a culture of dishonest people fucking the bureaucracy, we need to move away from that.

[NNN0LHI]

18. Sorry dude. Dishonesty implies breaking the law or lying about something

Neither of which I do. So just what are you really talking about may I ask?

Don

[libertypirate]

25. No it does not.... Which is a big problem...

Sir, There is a difference between breaking the law and acting dishonestly. You want to know what is wrong with dishonesty. Since everyone is a little guilty of being dishonest no one pays attention to the dishonest actions of others.

Yep, they just keep on fucking us because they take advantage of a system like everyone else.

You are numbing yourself to the corruption, and I really just feel sorry for you.

Does it really make you feel good about you to do that? Your not gaining respect, the oil companies keep screwing us, and you have to keep at it to screwing them so you can feel like your getting them back. When does the screwing end?

[NNN0LHI]

29. What in the hell are you talking about...

Sir? The credit card companies have every right to refuse to issue me or anyone else a card if they wish. They have my whole credit history in front of them before issuing me a credit card.

So where exactly does the dishonesty that you appear to be imagining enter into this? They make an offer to me. I accept their offer with all their rules. When I apply for a credit card I am hiding nothing, and neither do they.

Everything is laid out very clearly for all parties involved. I am willing to play by their rules so therefore they are required to abide by those same rules.

What exactly this has to do with oil companies screwing us as you are suggesting I don't know? They have a product to sell. You have the prerogative of purchasing that product...or not. It is supply and demand. If you are not familiar with that concept I suggest you may want to investigate it further.

You appear to have some kind of persecution complex my friend. You may want to get some help for that? But then that is also your prerogative. See ya.

Don

[Cats Against Frist]

37. Wha? Dishonest?

He's not faking his name, or breaking ANY of the rules that the card company set up. Gaming? Maybe -- but perfectly honest gaming, and if you think that these companies haven't tried to pin you down to whether you take your morning shit before or after breakfast, so they can sell you a shit-reminder wall clock, you're sorely mistaken. And if you've seen the way that credit cards are rigged to rip off the not-so-astute amongst us, I'd say that this is karma.

Besides -- there are about 90 million other terrible things this man could be doing -- like shooting cats or making stamps that show the Chimp-in-Chief with a gatt pointed at his noodle. That's what law is for, damn it. Not to stop a middle-ager from getting a candy bar on BPs tab.

And if you always do everything right, sorry that I offended you, Buddha.

[silverlib]

19. What was dishonest about his actions?

I'm not being sarcastic, - I just don't understand your meaning.

[libertypirate]

27. Always being screwed... So we screw back

What actually did he do to stop the rest of us being screwed, nothing. He took advantage of a loop hole to feel better about himself getting screwed.

[Commie Pinko Dirtbag]

30. Oh the poor little oppressed credit card companies

They're going to go bankrupt, snif, snif.

[NNN0LHI]

33. I think you may be onto something CPD n/t

[Commie Pinko Dirtbag]

35. I usually am.

And I'm on a roll lately, if you catch my drift.

[libertypirate]

36. Oh please I don't care a bit for credit card companies...

It doesn't make taking advantage of something a legitamate action.

I hate them myself but fucking them this way does nothing but satisfy a need for revenge.

If you all think that revenge is the proper motivation for anything well all I can say is your a moron. It breads nothing more then the desire to seek revenge.

[Commie Pinko Dirtbag]

38. Not revenge. Self defense.

They steal from the people through state-sanctioned usury. If I can coax money from them WITHOUT EVEN BREAKING THEIR OWN RULES -- I will.

The time for Mr. Nice Guy has passed long ago.

[libertypirate]

39. Your right about Mr. Nice Guy is done...

If Mr. Nice Guy is really over, take a stand, don't take pot shots and walk around like your getting something done. Actually do something, you didn't pursuade the system you recognized a failure in their system and exploited it. This is no different then setting up an offshore holding company to lower taxes, it's not illegal but it's not really ethical either.

[fob]

41. All right, now I'm gonna have to chime in here. That's at least 5 uses

of "your" when you should be using "you're" and that's 5 god-damned too many! Knock it off.

And are you really saying it's illegal/immoral to accept an offer someone extends to you? I *think* I know what you're getting at but man, take a step back or something. The CCC's KNOW they are making a potentially LOSING offer, they are playing the odds that there are way more suckas out there than there are Don's. Don is just doing his part to keep them from getting one over on everyone.

[NNN0LHI]

51. Its about as illegal/immoral as someone collecting a rebate

The companies don't plan on most people remembering to send them in to collect those offers either. That is what they count on.

Back to listening to Audioslave for me. Take care and see you later.

Don

[fob]

66. Of course, and you shouldn't feel like you have to justify yourself

against the irresponsible,faux charges levelled against you here.

Cheers.

[yankeedem]

49. The CC racket is a game

For once, a consumer is winning the game.
He has no obligation to you or anyone else to "pursuade the system".


And there is a huge difference between this and setting up offshore tax shelters, for one, he isn't taking food out of anyones mouth or medicine out from someone.

[muriel_volestrangler]

34. It's not a loophole - it's an explicit offer from the credit card company

and they obviously realised that some people will use it this way. There's nothing dishonest about agreeing to a company's offer. If credit card companies were making those kind of offers here in the UK, I'd do the same. Instead, they just offer interest-free balance transfers for 6 months - and a recent report reckons that's cost them £1 billion a year. I can't be bothered to do the juggling this requires to effectively increase my savings balance a bit to get extra interest, but obviously some people do (or at least avoid the interest they'd otherwise pay).

[yankeedem]

48. How is he screwing them?

It's like getting free samples of a drug, but never getting hooked. The CC companies are TRYING to get you hooked on high interest debt, he is just not letting them do it.

It's really sad when Americans regard a customer who a business loses money on is a "cheat".

[info being]

40. Misplaced morality.

You're talking about a person dealing with a corporation. That is war and has nothing to do with morality or relationships.

[amazona]

46. how on earth is this dishonest?

I wonder about people sometimes. What's with the negativity and self-sabotage? Look. A credit card company has a promotion. The marketing department needs people to respond to the promotion, or someone in marketing is going to lose a durn job. Don is responding to the promotion and taking them up on their trial offer. I do exactly the same thing.

Yeah, most of the time, a credit card is a credit card, I try it, it does nothing any different from cards I already have, so I cancel.

Occasionally, the card actually proves itself to me, and I go, OK, I'll keep that one, and cancel one of the old ones.

Nothing dishonest here.

Is it dishonest to take a test drive when you are thinking about buying a car but probably not going to buy one that very day? Don't think so. How is this any different?

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[Zenlitened]

59. This sounds more like a caricature of liberal sentiment.

:shrug:

[silverlib]

16. I played last month

kept getting Citibank card offers, even though I co-own a credit card with my husband. We have two credit cards for convenience and pay them both off each month.

The offer was tricky. I could transfer up to 8000 at no interest until 02/05 (and had until 5/04 to do this). If I charged $100 in purchases, the transfer would be 0% until 05/05. This is where they thought they would nail me. So, I got the card, charged $100 and paid it off. Since I didn't have any credit cards to transfer, I then wrote myself a check from my line of credit and opened up tax deductible IRA's. I actually had enough saved for one, but now was able to do two. The maximum charge for the transfer was $75. So, I will use my tax return and the left over money to pay them back over the next year. All they made for over $7000 was the lousy $75. And I don't have enough credit cards and inquiries to hurt my credit.

These kind of offers make me SICK! I'm like you and have thoroughly enjoyed the experience of outwitting them.

[benburch]

20. That's damned clever. nt

[MurrayDelph]

23. I have been known to take interest-free loans

A couple of years ago, our air conditioning/heater was found to have a carbon monoxide leak. I put the whole thing on the high-interest credit card (that I normally pay in full every month) that gives frequent-flyer miles. I then opened up a new credit card that charged a $25 transfer fee, but no interest for the first ten months. I paid it off in nine equal payments. Then I waited six months of non-use of the card, and cancelled.

A little over a year ago, our upstairs shower leaked into our
downstairs (and the insurance weaseled out of fixing it). Cost of
new shower was several thousand dollars. Again, rather than cash
in some US bonds, I put it on the frequent-flyer card, and received another offer for a teaser rate before the monthly float was over.
Again, I paid it off with a month to spare, let the card languish,
and cancelled it yesterday (just after they sent me a message saying they were increasing the maximum usury rate, should they want to).

Now, I noticed that I haven't been as flooded with card offers of late, but I have a Visa (cash back), a Mastercard (miles) and an American Express (cash back). If something comes up, I unfortunately came into a relatively large amount of money of late (death in the family), but I have no doubt that one of them would show up again if needed.

[NNN0LHI]

24. I have a cash back Mastercard that I usually put a grand a month on

5% cash back on all food and gas purchases and 1% on everything else. When it builds up to a hundred bucks they automatically send a check to me. Got one a couple of weeks ago. Took my wife out for a nice dinner with it. Should get another hundred dollar check from them before the end of the year. Had the card since 1998 and never paid them one dimes worth of interest. I imagine they hate me?

Don

[Selatius]

26. MBNA fucked us over with their bankruptcy bill. This is just playing even

[TalkingDog]

28. My husband is very good at the CC shuffle

Of course he's the son of an accountant, so I think it runs in his genes.

Me, I'd rather avoid the whole mess...but then again, that's why you partner up with someone who can balance your weak spots.

[amazona]

42. yes absolutely

On my tiny income, I always keep a sharp look-out for giveaways, and credit card companies seem to have so much to give away. Me like.

You have to be somewhat well-organized but I've often wondered why everyone doesn't do it.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[solinvictus]

45. I used to switch long distance carriers..

for fun and profit.

[amazona]

47. oh me too absolutely!

The best one was for $80. Wow. That was some time ago. I guess they caught on to my games, because I never get those offers any more. Doesn't matter, I guess, since I no longer have a landline long distance carrier.

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[amazona]

50. here's a recent one, unfortunately closed to new applicants

I'll put a true story here to show how it can work.

In December, Delta Airlines gave away 10,000 SkyMiles to, basically, anyone with a pulse who responded to their promotion. It was free and took a few minutes online. They then emailed me and said I could apply for a free American Express card with no annual fee the first year, and I would received another 12,500 miles if I was accepted. I applied, I was accepted. You also get a mile for every dollar you spend. Now I'm low income, so at first all I had spent was about 25 bucks.

Still I now had 22,525 SkyMiles. 25,000 SkyMiles is a free round-trip ticket within the United States and/or Canada.

A couple, three weeks later, American Express says that they will give me $2 for every mile for everything I buy before April 15. I then discovered that the grocery store, my gas station, even my doctor, EVEN MY NATIONAL FLOOD INSURANCE BILL now takes American Express. (Hey, when I knew them back in the day, Amex was not the most widely accepted of cards.) Cool.

So the exciting conclusion is that I pay all the same bills I had to pay anyway, especially that pesky insurance bill, and now I will be getting a free roundtrip air ticket from Delta.

Plus I have another 8 months before I have to cancel the card to avoid next year's annual fee. I'll be cautious and cancel it as soon as I have ticketed my free trip. I have the date I need to cancel marked on my calendar so I don't forget.

Yes, it takes a little more work than just paying my bills by cash like I would usually do. But I'm getting a very nice gift as a result of a very small amount of extra work.

In fact, when I return the Amex card, I will tell them frankly that if they cancel the fee for subsequent years, I will consider keeping it. However, I consider the "annual fee" a thing of the past and won't pay an annual fee. Too many other cards out there.

But if they are interested in keeping me as a customer on that basis, fine. If not, fine. I enjoyed their promotion, I gave them a fair chance, and I changed my mind about the shoddy customer service I'd experienced with them a decade ago.

So who loses in all this?

The conservation movement is a breeding ground of communists
and other subversives. We intend to clean them out,
even if it means rounding up every birdwatcher in the country.
--John Mitchell, US Attorney General 1969-72

[LynneSin]

54. Just hope you're not planning to buy a home or anything

all those new and opened accounts will effect your FICO score which could affect the rate that you get should you purchase a home.

If you're not buying a home - then all the better to you!!

:bounce:

[RUMMYisFROSTED]

55. Some schmuck paying at a rate of 27.99% is paying for your gas.

Feel proud, Don? Shame! :hurts:

:patriot:

[NNN0LHI]

61. Its my fault someone is paying 27.99% interest? I have a suggestion for you

Put in the ashtray for the rest of the night and we will discuss this some more tomorrow morning.

:smoke:

Don

[RUMMYisFROSTED]

65. I forgot to mention,

This is my new sarcasm smilie: :patriot:

[NNN0LHI]

67. I am really sorry. You fooled the heck out of me

Good on you. Fool me once, fool me twice, er, ah, never mind mind. Peace brother.

Don

[Book Lover]

56. Good for you

I don't understand the folks here who are calling you out. These companies have your credit history right in front of them; if they choose to assume the risk after due consideration, where's the harm? Good on you!

[fishnfla]

58. This is not a good idea for everyone

Too many apps, too many credit checks, and too many approvals can hurt some younger folks if they go to apply for important things, like a mortgage.

I've a CR similar to the OP's, I was told by my banker m-i-l the best way to keep it that way was not to apply for more credit, no matter what they offer....just say no.

[NNN0LHI]

63. Checking accounts are not a good idea for everyone either

I have known people who think they can keep writing checks until there are no checks left to write. Regardless of the account balance. Or lack there of.

Don

[amazona]

64. it didn't hurt me

I was told by my banker m-i-l the best way to keep it that way was not to apply for more credit, no matter what they offer....just say no.

Your M-I-L may be a banker, but she's obviously not a mathematician or a logician.

Think about this statement:

No matter what they offer?


That is just silly. There is a point at which the amount of money offered to take the credit card offers will be more valuable to you than the supposed cost of a ding against your credit record for accepting the offer.


If you refuse to take the money offered in the various promotions, you have of a certainty cost yourself that amount of money. Let me get an adding machine. Hmmm. $150 from Citibank last summer on a promotion. The free airline tickets woth $300-700 apiece from Amex my partner and I are (each!) receiving. The $30 from Amazon.com credit card we got the other day. The $25 gas credit card offers Don mentions. You know, $25 here and $300 there and in a few months it starts to add up!

Every time you refuse one of these offers, you are leaving REAL MONEY on the table right now. Today. Now ask yourself what you are getting in exchange for throwing these rebates in the garbage? My experience is that you are getting absolutely nada, that you throwing the money away and not getting a thing in return as far as improved credit.

The theory that having accepted a lot of credit card offers will hurt you when buying a house is just that, a theory. And IME it's an incorrect one. If you have a proven history of charging things and paying them off on time on an unsecured loan, you are not going to have any problem getting a very well-priced secured loan, which is what a mortgage is.

If I told you the terms of my mortgage, you wouldn't believe me. Yeah, that good. Yes, luck and timing played a part, but a proven credit history also helped. If I was a cash only buyer who didn't do the credit card game, with my low income and the fact of being long-term self-employed, no way I could have gotten a loan. I had to document that I could borrow and pay back.

"I was told by my mother-in-law" or "I read on the credit scoring site where lots of credit card companies pay for advertising" that making money off credit card companies hurts your credit score is not a convincing argument. And I promise you that it isn't true. I'm sure your M-I-L believes what she is saying. But she's wrong.

[Zorra]

62. More blows against the empire. Screwing credit card companies is

patriotic and a civic duty.

Ripping them off makes you a minor American hero.

Credit Card Companies are the enemies of freedom.