What is credit card churning?

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Credit card churning is a term that has gained popularity among savvy credit card users and travel enthusiasts. It refers to the practice of signing up for multiple credit cards to take advantage of their lucrative sign-up bonuses, rewards, and benefits. This strategy allows individuals to accumulate a large number of points or miles, which can be redeemed for travel, cashback, or other valuable perks. However, credit card churning is not without its risks and considerations. In this article, we will explore the concept of credit card churning in more detail, discussing its benefits, potential drawbacks, and important factors to consider.

Understanding Credit Card Churning

What is credit card churning? Credit card churning involves applying for several credit cards within a short period, typically with the intention of meeting the minimum spending requirements to earn the sign-up bonuses. Once the bonuses are obtained, some churners may choose to close the accounts, while others may keep them open to maximize ongoing rewards and benefits. The process is often repeated periodically to continue accumulating rewards from new credit card offers.

The benefits of credit card churning: The primary benefit of credit card churning is the ability to earn substantial sign-up bonuses, which can be significantly higher than the rewards offered through regular credit card usage. These bonuses can include a large number of points, miles, or cashback, which can be redeemed for travel, hotel stays, gift cards, or statement credits. Churning can also provide access to exclusive perks such as airport lounge access, travel insurance, and concierge services.

The potential drawbacks and considerations: While credit card churning can be lucrative, it is not without its potential drawbacks. Some credit card issuers have implemented restrictions on churning, such as limiting the eligibility for sign-up bonuses to once per lifetime or imposing stricter application criteria. Additionally, churning can have an impact on an individual’s credit score, as each new credit card application typically results in a hard inquiry on the credit report. Furthermore, managing multiple credit cards and their associated spending requirements can be challenging, requiring careful organization and financial discipline.

Factors to Consider

Creditworthiness: Before embarking on credit card churning, it is crucial to assess your creditworthiness. Credit card issuers typically require a good credit score to qualify for their best offers. It is recommended to have a credit score of at least 700 or higher to increase your chances of approval for premium credit cards.

Spending Requirements: Churning requires meeting the minimum spending requirements to earn the sign-up bonuses. It is important to evaluate whether your regular spending habits align with these requirements. Attempting to meet the spending requirements through unnecessary purchases or excessive spending can lead to financial strain and potential debt.

Annual Fees: Many credit cards come with annual fees, which can range from modest to substantial amounts. Before applying for a new credit card, it is essential to consider the annual fee and assess whether the benefits and rewards outweigh the cost. Some churners may choose to close or downgrade cards before the annual fee becomes due to avoid unnecessary expenses.


Credit card churning can be a rewarding strategy for those who are diligent, organized, and responsible with their finances. By leveraging sign-up bonuses and ongoing rewards, churners can accumulate a significant number of points or miles, enabling them to enjoy discounted or even free travel, among other benefits. However, it is crucial to consider the potential impact on credit scores, the ability to meet spending requirements, and the costs associated with annual fees. Careful evaluation and planning are necessary to ensure that credit card churning aligns with individual financial goals and circumstances.


1. creditcards.com
2. nerdwallet.com
3. thepointsguy.com