Churning Basics: Tackling the Myths of the Credit Card

Credit card churning is the proactive process of applying for new credit cards in order to meet different bonuses. In my journey to becoming a hardcore churner, many hours were spent on researching the best credit cards and methodologies in order to earn the most points. This process allows for working class people to accumulate enough miles/points to fly in luxury through their everyday spending. Whether its a single card or several cards, many avid individuals respond positively to the prospect of churning but typically have a few reasons for concern that hold them back from their first application.

Here are a few answers to some of the questions that I’ve come across:

1. Will getting a new credit card ruin your credit score?

2. Why should I pay fees for a credit card?

For instance, we can compare the American Express Cobalt Card to a no-fee 1% cashback credit card. Despite a monthly fee of $10, the Cobalt offers 2,500 bonus points each month you spend more than $500 on the card. Along with the bonus, all food/drink and groceries on the card will earn points at an accelerated 5x points per $1. On a monthly grocery/food spend of $500, the Cobalt will accumulate at least $50 in points, whereas the no-fee card will bring in a mere $5.

3. Should I have multiple credit cards at the same time?

On the other hand, for more aggressive churners, make sure to always be carrying cards that you are meeting the minimum spend on.

4. Should I cancel the cards that I currently have?

5. How much money do I need to spend to become a churner?

6. Okay, I’m in! But how long do you think we can keep churning for?

Hope these answers covered the basics and help take the edge off the mystery of the credit card. I will continue to update this post as more questions come in. Thanks for reading!

Travel Hacker// World Traveler// Professional Fatass