More App-o-Rama Tips and Tricks
Looking to improve your App-o-Rama returns? Here are some tips for further increasing your profits:
- Don't assume you can only get one credit card from each issuer. Just because you are applying for 10 or 15 new credit cards doesn't mean you need to turn to 10 or 15 different issuing banks. Most banks will gladly issue you several different credit cards, especially if you apply for them all at the same time, before their systems can synch up.
- Capitalize on new cardholder incentives. Many cards offer great rewards for activating your account, such as frequent flier miles, gift cards, rewards points and even more cash back. Don't forget to factor these offers into your returns. Some cards may require that you make a purchase of a certain size to receive these offers, so be sure to carefully check each card's terms and conditions.
- Don't forget the cards you already have. The credit cards in your wallet can be a great source of extra borrowing as well, especially since you already have an established history with them. Most banks will do what is known as a soft pull to check your credit score, which generally won't dent your score. Plus, they usually have several balance transfer offers for existing customers at their disposal. It pays to call and ask!
- Turn to business cards for bigger credit lines. Business credit cards typically have higher maximum credit lines than consumer cards do. If you have the ability to qualify for a business card, this can be a great way to land extra and larger credit lines.
- Open an interest earning checking account to cover monthly payments. Remember, no interest doesn't mean no payments. You'll need to keep current on the monthly minimum payments, which typically run from 1% - 4% of your outstanding balance. A high yield checking account will pay less interest than a high yield savings account, but it can be a great place to conveniently stash the cash you'll need for those monthly payments while still squeezing out a little extra profit.
- You can still make money on cards that don't offer 0% rates. A number of cards, such as those from Advanta offer rates as low as 2.9% for the life of your balance, which can be several years. Putting this money in a savings account earning 5% or 6% for several years can still result in a tidy profit despite the lack of a 0% interest period.
- Monitor your credit score to see when you can execute another App-o-Rama. Absolutely subscribe to a credit monitoring service so that you can frequently check in on your FICO score. You may be surprised that you are able to execute another App-o-Rama in just a few months. Some people also try a strategy called Bumpage where they try to increase their score by checking it on a daily basis, but this strategy is not proven and may actually further damage your score.
