Dec 20, 2010

Credit Card Churning Craziness

Ever heard of credit card churning? Well, you can accuse me of living under a rock, but I never did. But man, last night a whole new world opened up in front of me. Credit card churning! Basically it's opening up new credit card accounts to get the bonus offers and then canceling, only to open a new account a few weeks later and get the bonus again. And some people do this with as much as 10-15 cards a year... I love it. I don't know why I do, because as a PF blogger I should be vomiting in my mouth at the sound of it. But it's absolutely fascinating to me the things crazy people will do.

I was inspired (ok, ok, not really, I was already planning this for a few weeks) to try it a bit myself. I applied for a United Airlines Visa from Chase. You get 30,000 miles for signing up, and the annual fee is waived for the first year. That's enough points for one free domestic round trip flight, or two tickets and I'd pay a little on each. I was checking around on the internet to see if there were any restrictions to using the points and canceling it before the year is up to avoid the fee. Looks like it'll be ok, and from what I've read, it seems like my credit score will only take a minimal hit, if any.

I mean, 10-15 new cards and cancellations each year is WAY too much risk for me, but... a *little bit* of risk sounds great if it benefits me. :)


me in millions said...

I didn't know that it had an actual name. I have never done that because I feel like it would just be too much time and effort. Lazy? Yes!