App-O-Rama, also known as AppORama, Application-O-Rama, or AOR for short refers to a strategy of completing numerous credit card applications usually within a few hours. The reason for this is so that when credit card companies evaluate your credit history, it hasn't been affected by your credit application spree.

Why do an App-O-Rama?

• To obtain balance transfer (link this) offers, then use the 0% funds to invest in money market accounts and/or high interest savings accounts.
• To obtain signup bonuses and/or rewards.
• To establish and build credit history.

Cons of an App-O-Rama:

• Temporary drop in credit score (link this) due to new inquiries (inquiries will disappear off credit report after 24 months) and higher balances.
• Credit issuers may reduce the limits of your other credit cards to give you a new credit card.

1. Preparation:
   • Check your credit score. You probably want a score of at least 700 for decent results, preferably 750 or higher, and make sure you don't have too many recent inquiries within the last 6 months on your credit report.
   • Pay off any credit cards that have high balances.
   • Research which credit cards have the best offers for you and pick around 2-3 cards per issuer (American Express, Chase, Citibank, etc.). A typical AOR has between 10-30 credit cards depending on your personal needs and credit situation.
2. Application Process:
   • For better results, try to apply for your credit card applications all at once with the most important cards first.
   • A good time would be in the morning since most banks operate on Eastern Standard Time and sometime during the week, avoiding weekends.
3. Get a reward checking account or high yield savings account ready to put your money in.
4. Balance Transfers:
   • First, if you received a new credit card with a small limit and have a higher limit card with the same issuer, see this page to see how you can reallocate some of that credit.
   • Some credit cards will include balance transfer checks along with your shiny new credit card so all you have to do is write a check to yourself and deposit it in your bank. Make sure you calculate any balance transfer fees that may be charged to your account so you don't end up going over your limit and defaulting. For example, if you have a credit card with a $10,000 limit and a balance transfer fee of 3% and/or maximum $75, you would probably want to do a balance transfer of $9,900 to leave yourself a $25 cushion.
   • For other credit cards that do not provide balance transfer checks, some you can complete online and some you will have to call in. Now here is the tricky part, when the credit card company asks for the credit card information of the card you want to pay off, you'll want to give them a card that doesn't have any balance on it. The reason for this is so that when your balance transfer goes through, you will have a negative balance. Then all you have to do is call your credit card with the negative balance and ask them to mail you a check of the difference they owe you. American Express (link these), Bank of America, and Citibank credit card are good choices to have a negative balance.
5. Manage your Minimum Payments:
   • After you have finished depositing your balance transfer money into your reward checking accounts, high yield savings accounts, and/or CDs, you can't forget to pay your minimum payments (typically around 3% of your overall balance). So if you qualified for $200,000 in balance transfer money, be prepared to pay around $6,000 in minimum payments each month.

The annual percentage rate is a measure of the cost of credit on a yearly basis.

Short for App-O-Rama and Application-O-Rama.

Is the act of transferring debt from one credit card to another assuming the newer card has better terms and rates. The balance transfer offer consists of three elements: offer rate, offer duration, and transaction fee.

Checks issued by a creditor for the borrower to use against their credit line.

Is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. This helps lenders assess credit worthiness, the ability to pay back a loan, and can affect the interest rate and other terms of a loan. Major global bureaus include, Equifax, Experian, and TransUnion.

The maximum amount that can be charged on a credit card. If you go over the limit, you may be charged an over the limit fee and also risk defaulting.

A credit file disclosure, commonly called a credit report, provides you with all of the information in your credit file maintained by a consumer reporting company that could be provided by the consumer reporting company in a consumer report about you to a third party, such as a lender. A credit file disclosure also includes a record of everyone who has received a consumer report about you from the consumer reporting company within a certain period of time "inquiries".

A numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person.

Occurs when a debtor has not met its legal obligations according to the debt contract, e.g. it has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract.

Since the Fair Isaac Corporation provides the dominant scoring method, non-Fair Isaac method-generated scores often mimic FICO scores (and are frequently derisively referred to as "FAKO" scores).

The FICO score is calculated statistically, with information from a consumer's credit files and is primarily used in credit decisions made by banks and other providers of secured and unsecured credit.

Any fee representing the cost of credit, or the cost of borrowing. Usually charged when you do not pay your entire statement balance in full.

A period of time past the deadline for fulfilling an obligation during which a penalty that would be imposed for being late is waived.

Made by lenders when consumers are seeking credit or a loan. Hard inquiries from lenders directly affect the borrower's credit score. Keeping credit inquiries to a minimum can help a person's credit rating. A lender may perceive many inquiries over a short period of time on a person's report as a signal that the person is in financial difficulty and is looking for loans and will possibly consider that person a poor credit risk.

Is typically around 3% of your statement balance. This is the minimum amount must be paid in order to keep your account in good standing and also to avoid a late fee.

Being pre-approved for a credit card only means that you have passed a preliminary credit screening based on your credit history. You may still be declined after the creditor full evaluates your credit

Soft pulls don't affect the credit score and are characteristic of the following examples:

• A credit bureau may sell a person's contact information to an advertiser wanting to offer credit cards, loans and insurance based on certain criteria that the lender has established.
• A creditor also checks a person's credit periodically.
• Or, a credit counseling agency, with the client's permission, can obtain a client's credit report with no adverse action.

When your available credit is more than your credit limit, you may qualify for a statement credit.