What is an App-o-Ramma (Apporama)?

An App-o-Ramma (Apporama) is when you apply for a ton of credit-cards, leveraging your new credit-line for the following benefits:

• make money on the credit card bonus offer (cashback, gift certificates, free plane tickets, etc.)
• leverage your new credit line into a high interest savings account of CD (certificate of deposit) and earn 5%+ interest on the money borrowed at 0% APR introductory rates (credit arbitrage).
• leverage your new credit into paying off interest-bearing loans, mortgages, and automobile payments, while paying 0% APR introductory rates on the money borrowed (debt transfer).

The disadvantage of doing Apporamas frequently is that it can hurt your credit score. Many people report credit dips of 80-100 points. Nevertheless, if your credit is good and you don’t plan on applying for a loan anytime soon, an apporama is a great way to rack up free money from credit card offers and high interest savings accounts.