Credit Card Churning
Credit card churning is where you frequently sign up to new credit cards offering huge sign-up bonuses. Once received promptly meet the minimum spend within the allocated time period. Once points have been awarded cancel the card and move onto the next.
Admittedly the concept of credit card churning is relatively new to us, but it turns out there is a whole community in Australia who have been playing the points game for quite some time and have amassed a staggering amount of points. Pointhacks is a website dedicated to credit card churning in Australia and has a wealth of information.
Before I get too far into this topic, I would like to remind people that this is not financial advice! Anything contained within is just my thoughts and experiences.
Churning May Not Be For You IF…
- You have troubles paying your debts on time
- Concerned about your credit score
- You are planning on getting a large loan in the immediate future
However, after doing your own independent research you have decided that credit card churning is right for you…then welcome to the club! I trust that you have done thorough research on the topic, and already have an end goal in mind with what to do with all of the points collected, but if not here are some suggestions;
- Convert the points to gift cards to reduce everyday spending,
- Use the points to purchase objects/experiences from the rewards program directly (often overpriced),
- Save enough points to upgrade your seat on flights,
- Save enough points to ‘pay’ for an around the world trip once you retire,
- Transfer your points to a ‘family member’ (often they are so happy with your generosity they may agree to purchase you a gift in return…say to the value of 1c per point).
Regardless of your motives to join the credit card churning community, if you play the game correctly you will walk away with something for nothing.
We will update this blog with each new credit card that we apply for, and hopefully explore some innovative ways to meet the minimum spend.