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Source: bing.comIf you’re a frequent traveler, you know how expensive it can be to book flights, hotels, and rental cars. But what if you could earn enough rewards points to travel for free? That’s where credit card churning comes in. By strategically applying for and using credit cards, you can earn large sign-up bonuses and ongoing rewards that can be redeemed for travel.
What is Credit Card Churning?
Source: bing.comCredit card churning involves applying for multiple credit cards with generous sign-up bonuses and then canceling or downgrading them after earning the bonus. This allows you to earn a large number of rewards points quickly without paying annual fees or interest charges.
However, it’s important to note that credit card churning can have a negative impact on your credit score, so it’s not recommended for those with low credit scores or those who plan to apply for a major loan (such as a mortgage) in the near future.
How to Get Started with Credit Card Churning
Source: bing.comThe first step in credit card churning is to research credit cards with generous sign-up bonuses and rewards programs that suit your travel goals. Look for cards with no annual fees for the first year and a low spending requirement to earn the bonus.
Once you’ve identified the cards you want to apply for, create a spreadsheet to keep track of their application deadlines, minimum spending requirements, and bonus points. Then, stagger your applications so that you don’t apply for too many cards at once and risk being denied.
Maximizing Your Rewards
Source: bing.comOnce you’ve earned your sign-up bonuses, it’s important to continue maximizing your rewards. Many cards offer bonus categories (such as dining or travel) that earn extra points per dollar spent. Use these cards for purchases in those categories to earn more rewards.
You can also transfer rewards points between cards or redeem them for travel through the credit card issuer’s travel portal. Be sure to read the terms and conditions carefully, as some cards have restrictions on how and when you can redeem your points.
FAQ
| Question | Answer |
|---|---|
| Is credit card churning legal? | Yes, credit card churning is legal. However, it can have a negative impact on your credit score and is not recommended for those with low scores or those who plan to apply for a major loan in the near future. |
| How many credit cards should I apply for at once? | It’s recommended to apply for no more than 2-3 credit cards at once to avoid being denied due to too many recent inquiries on your credit report. |
| What should I do with credit cards I no longer use? | You can cancel or downgrade the card to avoid paying annual fees, but be aware that canceling a card can have a negative impact on your credit score. |
| Are there any downsides to credit card churning? | Yes, credit card churning can have a negative impact on your credit score and may not be worth the effort for those who don’t travel frequently or don’t have the time to keep track of multiple credit cards. |
Conclusion
Credit card churning for travel can be a lucrative way to earn rewards points and travel for free, but it requires careful planning and management of multiple credit cards. Before getting started, be sure to research the cards that best suit your travel goals and financial situation, and be aware of the potential impact on your credit score.