Credit Card Churning

Credit card churning refers to the practice of repeatedly opening and closing credit card accounts to take advantage of sign-up bonuses and rewards, without the intention of using the cards for long-term purchases or credit building.

People who engage in this practice usually aim to earn substantial rewards, such as travel points, cash back, or miles, by meeting the spending requirements for these bonuses, then canceling the cards before annual fees are charged or after the bonus has been claimed.

While credit card churning can be profitable for some, it can also be risky and time-consuming, and it can negatively affect your credit score due to the numerous hard inquiries and fluctuating credit utilization rates.

It is important to carefully evaluate the potential risks and benefits before engaging in credit card churning.

What is credit card churning?