Buzz
More and more people are getting into credit card churning, and who could blame them? We've spoken with experienced churners who have earned substantial rewards. We've also recommended that, if you decide to churn, do so with caution. CreditCards.com provides clear guidelines to follow.
Tamara E. Holmes writes:
Some consumers take advantage of the competition between card issuers by opening multiple credit cards offering attractive promotions. Once the bonus points are earned or used, they close those accounts and switch to a different set of cards to earn more rewards. While issuers generally don't mind this practice, Feddis points out that it can harm your credit score if you don't manage it carefully. If you plan to switch credit cards for rewards, keep these rules in mind.
A few rules Holmes suggests include:
Begin with a fresh start: If you currently have outstanding credit card balances, it might be best to steer clear of churning altogether.
Think twice before closing a card: If you're planning to close a card to avoid paying an annual fee, keep in mind that doing so could hurt your credit score due to changes in credit utilization. (Learn more about this here.)
She provides several other important rules and guidelines that are crucial to follow if you intend to churn cards. Be sure to read the full post.
Photo by Wonderlane.
