Churning Credit Cards

[pfgemployee]

Anyone have experience with churning credit cards?

For the last 5 years I've always just had one credit card that gave me airline miles. At the time I signed up they gave me like 40k airline miles but every since I just pay $95/year and there really isn't a big bonus to stay with one card.

I called up my credit card company to see if they could do anything for me and they just offered a lower rate, which doesn't matter to me.

After doing some research, I don't think I want to be the type of person who is trying to manage 5 different credit cards(churning) to take advantage of all the different offers. I also had put in place a credit freeze last year so to get a different card, I would have to unlock at least one of those.

I decided to go with Chase Sapphire Preferred since it sounds like this may be the best option for people with just one card. Now I have to spend $4k over the next 3 months, which will be a little bit of a challenge.

Anyone else have this card? Anyone churn and get a lot of benefit?

 

[Cyclonesrule91]

I just got the Marriot Rewards card which gives me 3-5 free stays after I spend $3,000 in the first 90 days and a free nights stay when the anniversary date I signed up for the card each year rolls around. I pay them off every month so will find a way to spend the $3,000 paying bills and then that will be the only card I use. I hate paying interest to credit card companies.

 

[cyclonedave25]

I have 3 CC’s but really only use 2.
My main card is a Citi Card I get 2% back on every purchase. The other is a Bank of America card I get 3% back on gas.
The 3rd one, I don’t use but I’ve had since college. I will buy something small with it every once in a while to keep it activated, though.

I literally use my CC’s to pay for everything. The only thing I spend money on and not use my CC is my rent. I always pay off the balance every month. You’d be surprised how much rewards you can accumulate over a year just by using your CC’s.

 

[MeanDean]

I don't really chase after rewards or miles. I have a couple/3 that I use but my brother has a "What's in your wallet" that gets 1 % No fuss, no muss.

 

[jdcyclone19]

I have a capital one quiksilver card. 1.5% unlimited cash back and is great for traveling due to no foreign transactions fees. This is my every day CC that I use and pay off every month.

Also have a citi that use to be a thank you card but was upgrade to the double cash back a year ago - this is my back up CC.

 

[DeereClone]

I don't like messing around with rewards programs, points, and churning. I go with a simple cash back card, run everything through it, and cash in my cash back money every quarter or so.

Looks like I should look into the Citi 2% card mentioned above. I am with Discover at 1% right now.

 

[Farnsworth]

I desperately want to get rid of our Chase SouthWest airlines card as it has a $95 annual fee which I hate paying, but if I cancel the card we lose a ton of our miles.

My main CC that I use for everything is a CapitalOne Venture card. No annual fees, 2% on everything, and 3% or 4% back on certain things (restaurants, gas, who knows). I think you can also switch between earning cash back or miles if you would like.

Never pay interest on the cards, just use them to get the freebies. Also makes budgeting easier as I can see everything from one spreadsheet.

 

[BryceC]

Anyone else have this card? Anyone churn and get a lot of benefit?

Yes, I've done this several times. Usually when we have a big trip upcoming. Chase Sapphire preferred is a great card, good miles, transferrable to a lot of places.

I feel like I've gotten pretty good at it.

First time we did it my wife and two kids wanted to go to Disneyland. We ended up getting a Southwest Companion pass (had to get 110,000 miles in 3 months - was back at school and paid my tuition on two separate Southwest 50,000 mile cards and got reimbursed by my company so that one was easy). Was able to fly to California, South Texas, Colorado, and Chicago once on just that one due to getting the Companion Pass.

My family and I (now 3 kids) are going to watch the Cyclones in Maui. We're flying there and flying between the islands for a total of about 250.00 for the flights. It'd be thousands if we were just straight up buying them. If you have enough time and plan far enough out it's pretty easy.

 

[ISUav8r]

I have done it a little bit. Started with Chase Sapphire Preferred 2 years ago, after a year called and asked them to waive the yearly fee. they cut it in half so i kept it one more year. Did a product change to their basic card and just put it in a draw.

Got the citi thank you 3 weeks ago with spend $4000 for 50k points. Did my first attempt at manufactured spending. So far have done $3000 worth. So I will only spend $1000 for 50k points which is roughly equal to $600. For a 60% cash back rate compared to the 2% standard. I don't plan on doing this a lot, was more experimenting to learn how to do it. It is a bit of a rush so I might do it more.

 

[BryceC]

I also never spend on a travel rewards card - typically earning miles is MUCH more efficient with signups than regular spending. Use only an Amazon card for regular purchases and only strategically use travel cards.

I've used The Points Guy and Extra Pack of Peanuts for resources on this.

 

[SpokaneCY]

We use an Alaska card for all our travel and it runs up miles fast but I think we're leaving cash on the table... We have a Costco Citi card but I'm interested in researching some of the options posted above.

A friend of mine who is a GENIUS with the angles routinely churns cards for miles, trips, stays, etc... and KILLS it. I lose interest and want to find that 1 all-round reasonable plan and stick with it.

 

[cycloneworld]

I'm a slow churner - usually get a new card every 6-12 months and cancel the previous one. I travel a ton for work so getting the minimum spends is pretty easy but if you need to meet your initial spend requirement, you can always go by hy-vee (or wherever you shop) gift cards - you'll always use those. Just don't overspend to overspend. And of course, pay each off every month.

There is a misconception that churning greatly hurts your credit - I've followed mine and it's only been affected +/- 10 pts and always rebounds after a month or two.

There are a ton of blogs and subreddit out there to help if people are interested.

 

[ca4cy]

I don't like messing around with rewards programs, points, and churning. I go with a simple cash back card, run everything through it, and cash in my cash back money every quarter or so.

Looks like I should look into the Citi 2% card mentioned above. I am with Discover at 1% right now.

Are we the same person?

 

[dmclone]

There is a misconception that churning greatly hurts your credit - I've followed mine and it's only been affected +/- 10 pts and always rebounds after a month or two.

I would think it would be hurt the most when you cancel your oldest card.

 

[SCNCY]

I have three cards in my wallet.

1. I have a bank of America card that gives me 3% on gas, 2% on groceries that I use.
2. I have a capital one card that gives me 1.5% on all purchases.
3. I have a card I got in college that has no rewards. I keep this in case of emergencies.

 

[iahawks]

I've been churning the past few years. Started off with a chase freedom and got $150 cash back and rotating 5% categories every quarter. I still use that card when the item I'm purchasing falls in that 5%.

I graduated to the Chase Sapphire Reserve (when they had the 100,000 point and $300 travel credit per year), Chase Sapphire Preferred, IHG and now just got done getting the bonus on the Marriott card.

I haven't paid for my last 5 or so airline tickets and have had many free hotel stays since doing this and still have points and cashback saved up. I feel like it is free money if you can meet the minimum spend to get the bonus and pay off your balance every month.

 

[EvilBetty]

I have three cards in my wallet.

1. I have a bank of America card that gives me 3% on gas, 2% on groceries that I use.
2. I have a capital one card that gives me 1.5% on all purchases.
3. I have a card I got in college that has no rewards. I keep this in case of emergencies.

I have three cards in my wallet.

the bank of america card is pretty solid. your lineup is just like mine
1) bank of america
2) 1.5% cash back chase card
3) my very first credit card which now has a 31k limit. helps debt to credit ratio

to the OP. unless you are dropping 10k a month on a credit card, don't stick with a card that has an annual fee. there are good cards out there that cost nothing and give back cash which is just as good as money.

 

[Cyclones_R_GR8]

I just got the Marriot Rewards card which gives me 3-5 free stays after I spend $3,000 in the first 90 days and a free nights stay when the anniversary date I signed up for the card each year rolls around. I pay them off every month so will find a way to spend the $3,000 paying bills and then that will be the only card I use. I hate paying interest to credit card companies.

I use the Marriott card as well. The yearly fee is made up with the e-certificate. I used that a couple of weeks ago for a Residence Inn in Blacksburg that is about $230 a night.
I've also used points and e-certificates for a few Cyclone away football games.

 

[BryceC]

I would think it would be hurt the most when you cancel your oldest card.

It's tiny. But I get and cancel the cards usually within about 3-4 months. The effect on my credit is basically nil.

As far as a hotel card goes, Hyatt is a great one - you get 2 free nights at any Hyatt. If you have a spouse you can both get them and stack 4 nights together. We stayed in a 1000 square foot 3 room suite at the Hyatt Regency in Huntington Beach - room is normaly 700.00/night.

 

[ianoconnor]

I've been churning at a moderate rate the past 3-4 years - just finished the Marriott sign-up bonus for 70k points. I use a Citi Double Cash for all my normal purchases when not trying to hit a sign-up bonus. Most of them I cancel before the annual fee hits. There are a couple I've kept longer than a year, such as the IHG which has a $49 annual fee but includes a free night annually (which they just recently changed terms on & made more restrictive).

r/churning is SUPER helpful