Credit card churning is a method of opening and closing many credit cards to obtain points and miles to travel for free. If you want to grab lots of points and miles, having many credit cards can help create this path.
Credit card churning is often frowned upon by credit card companies. They are not in the business to lose money but are in the industry to make money. It is a delicate subject that many companies try to warn about. As a travel hacker, I try to keep things simple, but you must have some strategy.
Travel hacking is not illegal, but specific modes such as manufactured spending can be seen as unlawful or taking advantage of credit card companies. Still, it is about earning points and miles to travel for free.
Credit card churning opens up cards, hits the sign-up bonuses, and closes them. People will use credit card churning to earn air miles, travel rewards, or cashback.
– Open up a card for a
particular credit card
currency like Ultimate
Rewards Points or Credit
card airline miles.
– Hit the credit card bonus to
get the rewards quickly.
– Once you have the bonus,
close the card before the
annual fee hits the account.
– Rinse and Repeat
Certain companies allow you to obtain a second bonus only after 24 months, or companies like Chase have the 5/24 rule. You can only apply for five credit cards in 24 months, or you will not get a new card.