Credit Card Churning Problems

Maybe it’s just me, but it seems like the credit card companies are starting to tighten things up when it comes to credit card churning. Furthermore, reports are beginning to surface that churning could have an adverse effect on normal expenditures such as car insurance. Is the end of credit card churning coming sooner than later?

Churning News: It’s Looking Bleak

Yesterday I read a piece over at Travel With Grant which outlined his really depressing “App-o-rama”. His experience was not good and chalked full of denials and failed recon calls. We know that Chase has their famous “5/24” rule which prohibits applicants from obtaining most of their cards if they’ve opened more than 5 cards in the previous 24 months. This is especially relevant because Chase has some of the best cards out there. Furthermore, reports are emerging that other banks are looking to follow their lead and curtail card churning.

Earlier this week, View From The Wing reported that insurance carriers are beginning to adjust rates for policy holders that engage in churning. While this wasn’t heavily covered in the points and miles world, I really think it should be. In my opinion this could be the straw that breaks the camel’s back. If most insurance companies begin to rate card churners, I think it’s game over.

Typically, the mainstream warnings about card churning involve inadvertently falling into debt. If churning now has an adverse impact on something almost everybody needs to buy like insurance; then how could it ever be a viable option? Who wants to apply for a bunch of cards that may or may not be approved, then deal with higher insurance rates? It’s just not worth it.

Perfect credit card combo

Moving Forward

Personally, I think Chase’s 5/24 rule is a good guideline to follow. Opening a 2-3 cards per year allows you to develop a great card rotation, while still snagging big sign up bonuses here and there. Additionally, this type of strategy should prevent you from making awkward recon calls and paying higher insurance premiums. What do you think? Will you continue to churn, or has recent news steered you away from the practice?

Related Posts

It's only fair to share...Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

2 thoughts on “Credit Card Churning Problems

  1. New amazing cards keep on coming and bank keep on introducing even higher offers than before, yet for regular “veteran” churners the game is getting harder. It would have been fine if it was just Chase with “make-steady-churning-difficult” motto but Amex and Citi also have the same motto. This then caused a lot of regular churners to massively churn BC and BoA. Folks were churning A+ as soon as 3 weeks while another dude got 22 (or maybe it was the entire 24) baseball (?) BoA cards in a SINGLE day.

    Fast forward a little and BC has tightened up A+ approval to the max whereas BoA is approving cards in “error” and has possibly introduced 2/2, 3/12, and 4/24 rules. Meanwhile, nobody wants to mess with US Bank because they’re can be balzy enough to perform a complete shutdown on a churner seeking a new card with them. So what does that leave us?
    1. you turn towards banks that don’t have these over the top anti-rules….yet.
    2. every 2 year you churn limited # of Chase/Citi cards that is churnable to you
    3. you play up/down Amex game
    4. you buy rule bypassing codes from interwebs
    5. call 100 times for retention offers
    6. and you should have been churning bank accounts last year!

    Point being churning at 50/24 isn’t as fun as it was at 4/24. Options are severely limited and you’re forced to consult the spreadsheet 5 times before you apply for a new card. IF one wants the thrill of being at 4/24 again then they should get (sorry i mean churn) a willing SO [every 24 month]. Just remember to kick him/her out once his/her CP runs out and s/he is beyond 5/24.

    1. Great recap of current status of the game. I’m much more of a churner than my brother Ben, I’m probably around 15/24. Keeping your spouse under 5/24 is definitely key to leveraging opportunities as well!

Comments are closed.