In the world of personal finance, few strategies are as controversial — or as rewarding — as credit card churning.
At its core, credit card churning involves opening new credit cards to earn lucrative sign-up bonuses, then sometimes closing or downgrading those cards once the rewards have been secured.
Done correctly and legally, credit card churning can unlock thousands of dollars’ worth of cashback, free travel, hotel stays, and other valuable perks.
However, it also comes with risks — and potential pitfalls for the careless.
This guide will explain what credit card churning is, how to do it legally, the rules you must know, and tips for maximizing your earnings without damaging your credit.
What is churning on a credit card?
Credit card churning is a strategic practice where individuals open multiple credit cards to take advantage of their introductory sign-up bonuses.
These bonuses are often substantial — offering anywhere from $200 to $2,000 in value after meeting a minimum spending requirement.
This is how a basic churn might look like: After spending $4,000 in three months, open a card with 80,000 points. Reach the required minimum expenditure. Earn the bonus.
Either keep the card, downgrade it, or cancel it before the annual fee hits again.
Repeat the process with other cards or issuers, and suddenly you’re flying first-class or staying in luxury hotels — almost free.
Why Credit Card Companies Offer Bonuses
It might seem strange that banks offer huge bonuses that people can exploit.
However, the business model is clear:
Most people keep cards open longer than intended.
Many people carry balances, paying high interest.
Merchants pay fees every time you swipe your card.
Through annual fees, interest charges, and swipe fees, credit card issuers anticipate recouping bonus costs over time. Smart churners, however, avoid these traps and collect the rewards without falling into debt or paying excessive fees.
The Legal Side of Credit Card Churning
Is it legal to reload credit cards? Yes — completely legal, as long as you:
Provide truthful information on your applications.
Follow each issuer’s terms and conditions.
Important:
Lying about your income, employment, or personal details on an application is illegal. But applying for cards, earning bonuses, and even closing accounts are all perfectly within the law.
Risks and Challenges of Churning
Churning isn’t risk-free. Before diving in, consider the potential downsides:
1. Impact on Your Credit Score
Hard inquiries: Each credit card application results in a small, temporary ding (typically 2–5 points).
Average age of accounts: Opening many new cards can lower your average account age, slightly impacting your score.
Credit utilization: On the positive side, opening new cards increases your overall available credit, which could improve your score if you keep balances low.
In the End: If managed carefully, churning has minimal long-term effect on a good credit score — but reckless behavior (like missing payments) can cause major damage.
2. Annual Fees
The annual fees for many of the best bonus cards range from $95, $395, and up to $695. Make sure the rewards outweigh these costs or plan to downgrade or cancel after earning the bonus.
3. Complex Rules
Card issuers have added restrictions to combat churners:
Chase 5/24 Rule: Chase will likely deny you if you’ve opened five or more cards (with any bank) in the past 24 months.
Amex once-in-a-lifetime rule: You can generally only earn a welcome bonus once per lifetime per card product.
Citi’s 48-month rule: Some Citi cards restrict bonuses if you’ve had a similar card in the past 48 months.
4. Management Hassle
Good organization is required for tracking minimum spend requirements, due dates, card benefits, and cancellation deadlines. Sloppy tracking can lead to missed payments, forfeited rewards, or wasted annual fees.
How to Get the Most Out of Sign-Up Bonuses Correctly If you’re serious about churning, here’s how to do it responsibly and maximize your rewards:
1. Know Your Credit Score Prior to Beginning You’ll generally need a credit score of 700+ to qualify for the best cards.
Before applying, check your credit profile for errors and work on improving your score if needed.
2. Be Strategic About Applications
Plan your card applications carefully:
Due to the 5/24 limits, prioritize Chase and other issuer cards first. Space out applications (e.g., one every 90 days) to avoid red flags.
If you have a realistic spending plan to meet the bonus requirements, only then should you apply.
3. Track Your Cards
Use a spreadsheet or app to track:
When you opened each card.
Deadlines and minimum spending requirements. Dates for annual fees. Reward points earned.
Popular apps like Travel Freely or AwardWallet can automate some of this.
4. Meet Minimum Spend Without Overspending
It seems simple to spend $3,000 in three months, until you realize that buying unnecessary items defeats the purpose. Instead, find creative ways to spend your normal money: Cover your insurance costs. Prepay utilities or phone bills.
Buy gift cards for future use.
Plan for major expenses like car repairs and medical bills. Some churners even use Plastiq (a service that lets you pay rent, mortgage, or tuition with a credit card for a fee) — though fees must be calculated carefully.
5. Downgrade or Cancel Cards Thoughtfully
After earning a bonus:
Downgrade to a no-fee version to preserve credit history without annual fees.
Cancel only if the card has no ongoing value and there is no viable downgrade. Tip:
Always check if cancelling a card will affect your other rewards (e.g., Chase Ultimate Rewards points are lost if you cancel without a Chase Sapphire card).
6. Maintain Good Credit Habits
Every month, pay off every balance in full; never carry debt. Maintain a low credit utilization rate—less than 10% is ideal. Monitor your credit report regularly.
Best Credit Cards for Churning (2025)
Even though the best deals change all the time, the following types of cards are popular with churners: Typical Bonus Features of the Card Chase Sapphire Preferred® 60,000–80,000 points Flexible rewards, excellent for travel transfers Capital One Venture X® 75,000 miles Premium perks, airport lounge access
Benefits of luxury travel, a high fee, but high rewards, American Express Platinum® 80,000–150,000 points (targeted offers) Citi Premier® 60,000 points Broad travel and dining categories
Wells Fargo Autograph℠ Card 20,000 points No annual fee, easy bonus for beginners
Always compare current promotions before applying, as sign-up bonuses can fluctuate throughout the year.
Pro Tips to Master Churning
Family pooling: Some programs let families combine points (e.g., Chase Ultimate Rewards), multiplying value.
Bonuses for adding authorized users: Some cards provide bonuses for adding authorized users without charging an annual fee. Use shopping portals: Maximize every dollar by using card-linked shopping portals for extra cashback or points.
Stack promotions: Occasionally, you can combine a big welcome bonus with limited-time category bonuses for even higher earnings.
Red Flags That Might Get You Banned
While legal, aggressive churning can annoy banks. Behaviors that could trigger account shutdowns include:
Too quickly (within a few months) opening and closing cards. Repeatedly applying for the same card type despite restrictions.
Spending huge amounts and immediately redeeming points, then cancelling.
Tip:
Space out your churns, maintain at least a few long-term relationships with issuers, and use the cards periodically even after bonuses.
Conclusion
Credit card churning is not for everyone.
It requires discipline, organization, and a solid understanding of credit.
For those who approach it thoughtfully, though, the rewards are staggering: free flights, luxury hotel stays, cash in your pocket, and once-in-a-lifetime experiences — all legally obtained through the smart use of welcome bonuses.
By respecting the rules, maintaining strong credit habits, and staying organized, you can churn responsibly and profitably, turning your everyday spending into unforgettable adventures.