What is Credit Card Churning?



Question: What is Credit Card Churning?

Answer: Credit Card Churning is the art of signing up for credit cards, spending just enough to earn the signup bonus, and then canceling the card before the annual fee gets posted to your account. Credit Card churners take their bonus points and miles and use them to score free hotel stays and airfare and other perks.

Credit Card Churners are people who do Credit Card Churning to maximize their points and miles.

However, banks and credit card issuers are starting to stop credit card churners by changing their credit card agreements by limited people to one signup bonus offer per lifetime.  Once you get the signup offer for the card, you are no longer allowed to get the signup bonus again.  Chase bank even implemented Chase 5/24 Rule or Chase 3/1 Rule by rejecting credit card applications if the applicants have too many new credit cards within 24 months.

It was relatively easy even in 2014 and 2015 to get multiple bonus signup offers for the same credit cards within a short period of time.  It is definitely harder for people to signup for new credit cards just to get the bonus points in 2016 and beyond.

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