App-o-rama

From Wikipedia, the free encyclopedia

App-O-Rama refers to a strategy of completing multiple applications in a relatively short period of time. The term, as set out in the Wall Street Journal,^[1] refers to a frenzy of applications, and most frequently refers to applications for financial products, such as loans, credit cards, and bank deposit accounts. However, it can also include insurance applications, brokerage applications, etc.

App-o-Rama is also commonly known as AppORama, Application-O-Rama, App-a-Rama, "AOR" for short, and other nicknames in the United States.

Since many of these financial products require a credit inquiry and evaluate one's credit worthiness at that point in time, the object is to perform all applications at the same time, preferably when one's credit profile is in top condition.

1 Reasons for an App-O-Rama
2 Consequences of an App-O-Rama
3 Additional information
4 References

[edit] Reasons for an App-O-Rama

There are many reasons one might perform an App-O-Rama:

To obtain many balance transfer offers, to move higher rate debts to a lower rate; or to use 0% funds to invest in money market account or bank CD.
To obtain as many signup bonus rewards as possible.
To establish or build credit history

[edit] Consequences of an App-O-Rama

Temporary drop in credit score due to new inquiries (and higher balances)
Possible denials of additional new cards from same issuer or even having existing cards closed

[edit] Additional information

The term has been coined in the FatWallet.com Finance Forum^[2]. There are several offline and online books, papers and illustrations of this term and how the strategy is implemented. The Wall Street Journal summed up the application frenzy up in one article.^[1] Money Economics published an article on August 2, 2007,^[3] analyzing the maximum actual profit one can obtain from this interest rate arbitrage. It concluded that people may come out making less than what they might expect or others might suggest.

Those attempting an App-o-Rama must consider several important factors. Since most applications require credit checks, those who have good credit have the best chance of getting approved for the accounts they apply for. Many people who undertake an App-O-Rama prefer to check their credit score before applying to ensure the scores are high enough to provide the best chance of approval for all products applied for.^{[citation needed]}