My First Major Credit Card Churn

At the end of July, I completed my first major credit card churn.

Someone who completes a credit card churn applies for multiple credit card applications on a regular basis to get as many frequent flyer miles as possible. They apply for a card, spend the minimum amount necessary, get the frequent flyer miles, cancel the card a year later, and then do it all over again.

In the past, I would apply for one or two new credit cards every three or four months. However, in July, I thought I would go for four credit cards. A possible big risk, but the rewards would be huge.

The four credit cards I applied for are:

Chase Hyatt –  Sign-up Bonus: 2 Free Nights, 2 Paid Night Upgrades, $75 statement credit all after the 

                          first purchase, $75 annual fee.

Chase United Explorer Card – Sign-up Bonus: 50,000 miles after spending $1,000 in 3 months

                                                   (I was targeted for this offer), $95 annual fee, waived for first year

Hilton Amex – Sign-up Bonus: 50,000 miles after spending $750 in 3 months, no annual fee

US Airways MasterCard – Sign-up Bonus:  40,000 miles after first purchase $95 annual fee, waived for 

                                             first year

Now the downside of my recent credit card churn. I checked my credit using CreditKarma (more about this website in a future post) and my credit has dropped by 10 points. A 10 point drop is expected by adding four new cards to one’s credit report.  My credit should bounce back to it original 775 score by December, just in time for my next churn.

As I stated Wednesday, I finished my spend requirements for these cards already, so I am back to using the British Airways Credit Card trying to hit that second 25,000 bonus. 

Was it difficult? No way. 

Was it worth it? Oh, yes. This recent credit card churn netted me almost 4 round-trip tickets to anywhere in the United States or close to 2 one-way tickets in business class to Europe or Africa plus at least 4 free hotel nights all for about 1 hours worth of work.

Credit card sign-up bonuses can increase point balances to levels that travel dreams become reality!