You can churn Credit card churning by repeatedly opening and closing credit cards. Churners will often try to earn cash, rewards points, or miles by qualifying for a large intro bonus after they open their first new account with certain companies
Credit card churning is very controversial and frowned upon by card issuers. It involves opening new credit cards without intending to use them afterward, as you get an intro bonus for doing so. It can be profitable if done right but carries risks too high for most people!
Churners would open multiple credit cards in quick succession, earning the intro bonus for each new account, and then close or stop using them. A few months later, they’d start again with another round of applications. This time, tricks were needed to accomplish minimum spending requirements while still maintaining a positive history on file at all participating banks!
Credit card churning still happens, but many credit card issuers have updated the terms and conditions for their cards in order to stop it. They’re making it harder or at least less lucrative so that people don’t do this anymore!
Another example is Chase’s unofficial 5/24 rule, which means the card issuer generally won’t approve you for a new credit card if you have opened five cards within two years—including from other issuers.
Other card issuers may take similar approaches to stop people who are trying to game their rewards programs. For example, American Express generally only allows you to earn the intro bonus on one of their cards once per lifetime, and if someone close an account before they can get another chance at earning it with that same company again in the near future; however, there might not be any possibility for those credits toward opening up new accounts or receiving gifts from them anymore.
Points are a great way to buy things with rewards, but if you’re not careful, they can be taken back by your bank. In some cases, card issuers even shut down accounts when people play games and earn too much credit fraudulently.
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