Card Churning Explained


Sign Up For Bankrate Dashboard (It’s Free):

Card churning is the term for when you frequently open new credit cards, often with the intent to game the system. Basically, to get new cards, get the sign-up bonus and then move on to something else. And while it totally makes sense to sign up for a new credit card from time to time, you don’t want to overdo it. There can be real consequences to credit card churning if you take it to the extreme.

So what you want to do is to spread out your credit applications. I would say: Apply for credit no more than once every six months or so. Because if you’re applying more often than that, all of these hard inquiries on your credit reports can stack up. They can make you look like a risky, desperate borrower, they can trim points off your credit score, there’s also the issue of the average age of your accounts and that’s going to be lower and lower as you continually open accounts.

Some credit card companies even have policies where they’ll reject you if you apply for too many cards all at once. Or they’ll even try to claw back the bonus if you do things like buying too many gift cards or closing the account before a year has elapsed.

Again, new credit can totally make sense from time to time. Don’t overdo it, though. Space it out. Make sure you’re playing by the rules, protecting your credit score and staying in these card issuers’ good graces.

When Buildings Are Better Than Open Land

Britain’s natural beauty is indeed one of its greatest assets. But a critical need for housing is forcing a discussion on the sacrosanct nature of open lands.

What Is the UK Community Infrastructure Levy?

The increased burden on infrastructure from new developments is real and should be built into development costs. But is the CIL the way to do it?

What Can Be Learned From 40 Years of Housing Volatility in the UK?

There are many fingers pointed in as many directions as to why there is a housing shortage today in the UK. A look at history helps identify causes and solutions.

The Purpose of the London Development Panel

Land investors and homebuilders are robust participants in urban development. The LDP helps them to revitalise neighbourhoods more quickly.

The Implications of Institutional Investors in Rented UK Housing

Investors such as Prudential are now buying to-let residential housing in England. After decades of absence, the housing crisis seems to be the driver.

You May Also Like

Leave a Reply