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Credit card churning—the practice of opening cards to earn signup bonuses—is one of the most lucrative personal finance strategies available. Done correctly, you can earn thousands of dollars in travel, cashback, and other rewards. Done poorly, you can damage your credit and end up in debt. This guide will show you how to churn safely and effectively.
What Is Credit Card Churning?
Credit card churning involves:
- Opening credit cards with attractive signup bonuses
- Meeting the minimum spending requirement
- Earning the bonus (points, miles, or cashback)
- Deciding whether to keep or cancel the card
Why Banks Offer Big Bonuses
Banks know most customers will keep the card long-term, paying annual fees and interest. Churners are the exception—but banks still profit from merchant fees on spending. It's a mutually beneficial arrangement when done responsibly.
The Chase 5/24 Rule
The most important rule in churning: Chase will generally deny your application if you've opened 5 or more credit cards (from any issuer) in the past 24 months.
⚠️ Cards That Count Toward 5/24
- Personal credit cards from any issuer
- Authorized user cards (can be removed by calling)
- Store cards that report to credit bureaus
Business cards typically don't count toward 5/24 (except Capital One).
Strategy: Chase First
If you're under 5/24, prioritize Chase cards before other issuers. Once you're over 5/24, you'll be locked out of most Chase cards for up to 24 months.
Best Current Signup Bonuses
Chase Sapphire Preferred
Minimum Spend: $4,000 in 3 months
Value: ~$750 (travel) or $600 (cashback)
Annual Fee: $95 (not waived first year)
Why It's Great: Transferable points, travel protections, 25% point bonus through Chase portal
Capital One Venture X
Minimum Spend: $4,000 in 3 months
Value: ~$750 (travel)
Annual Fee: $395
Why It's Great: $300 annual travel credit, 10K mile anniversary bonus, lounge access
American Express Gold
Minimum Spend: $4,000 in 6 months
Value: ~$600-$1,200 (depending on redemption)
Annual Fee: $250
Why It's Great: 4X on dining and groceries, dining credits
Citi Premier
Minimum Spend: $4,000 in 3 months
Value: ~$600
Annual Fee: $95
Why It's Great: 3X on travel, gas, dining, and groceries
Churning Strategies
1. The App-O-Rama
Apply for multiple cards on the same day to:
- Combine hard inquiries (some issuers only pull once per day)
- Get multiple approvals before new accounts report
- Maximize bonus earning potential
2. Manufactured Spending (Proceed with Caution)
Techniques to meet minimum spend without actual spending:
- Gift card purchases (check issuer terms)
- Bill payment services
- Prepaying utilities/insurance
⚠️ Manufactured Spending Risks
Many techniques violate issuer terms and can result in:
- Account closure
- Forfeiture of points
- Blacklisting from future approvals
3. Product Changing
Instead of canceling, ask to downgrade to a no-annual-fee version. This:
- Keeps account history (good for credit score)
- May make you eligible for the bonus again later
- Avoids annual fee
Impact on Your Credit Score
Churning affects your credit in several ways:
| Factor | Impact | Duration |
|---|---|---|
| Hard Inquiries | -5 to -10 points each | 12 months on report |
| Average Age of Accounts | Negative | Improves over time |
| Credit Utilization | Positive (more available credit) | Ongoing |
| Payment History | Positive (if paid on time) | Ongoing |
Typical Score Impact
Most churners see a temporary 10-30 point drop when opening multiple cards, followed by recovery within 6-12 months. Long-term, many churners maintain excellent credit (750+) by:
- Paying all balances in full
- Keeping utilization low
- Maintaining old accounts
Mistakes to Avoid
1. Carrying a Balance
Interest charges will quickly erase any bonus value. Never spend more than you can pay off immediately.
2. Missing Minimum Spend
Set calendar reminders. Track spending carefully. Missing the minimum spend means no bonus.
3. Closing Cards Immediately
Some issuers claw back bonuses if you close within 12 months. Keep cards at least one year.
4. Ignoring Annual Fees
Calculate whether the benefits outweigh the fee before keeping a card long-term.
5. Applying Without a Plan
Have a strategy for meeting minimum spend before applying. Don't apply for cards you can't qualify for.
💡 Pro Tips
- Use a spreadsheet to track applications, spending, and annual fee dates
- Set up autopay on all cards to never miss a payment
- Check CardMatch and pre-qualification tools before applying
- Consider business cards—they often don't count toward 5/24
- Refer friends and family for additional bonus points
Bottom Line
Credit card churning can be incredibly rewarding, but it's not for everyone. You need excellent credit, financial discipline, and organizational skills. If you can pay your balances in full and keep track of multiple cards, churning can fund amazing travel experiences and put thousands back in your pocket.