Churning - when the golden goose stops laying

[Lost Redditor]

I've yet to be refused except for one where I put in bad information by accident and I've been churning quite a bit since late 2019. Back when I began I had just started earning 6 figures, I'm now well above where I was then.

Here's a (dates modified) chart of my churning. I'm missing a card in there I think, and I have yet to do a Citi card. I probably won't now that NAB owns them.

For total credit limit I try not to exceed 30% of my income. Not any golden rule or a secret Experian number, just something that I've stuck with.

 

[levelnine]

Here's a (dates modified) chart of my churning.

Recording keeping is super important with churning.

If you don't already note it elsewhere, I'd also note the annual fee so you can record CPP cost of the points you're acquiring. Helpful for doing comparisons with cash fares, etc.

 

[Lost Redditor]

Recording keeping is super important with churning.

If you don't already note it elsewhere, I'd also note the annual fee so you can record CPP cost of the points you're acquiring. Helpful for doing comparisons with cash fares, etc.

You raise a good point! I removed several columns for the purpose of the screenshot. I do keep a records of the fees, CPP, as well as a copy-paste of what I put as running expenses as I can never be bothered working it out every time

 

[Mr H]

I use a much simpler technique - a list in a Word file where I only record the closure date for each card/service . I delete the previous version of each card/service once I have received the points and closed the account with the new one. I honestly don't care about details like CPP etc. I work that out where necessary before I apply.

 

[levelnine]

I use a much simpler technique - a list in a Word file where I only record the closure date for each card/service . I delete the previous version of each card/service once I have received the points and closed the account with the new one. I honestly don't care about details like CPP etc. I work that out where necessary before I apply.

That wouldn't work for me, but if it works for you, that's great. The important point is that every person needs to develop a system that works for them. The number of times you see people make mistakes about their eligibility for new cards based on miscounting/not knowing when they last opened/closed them is quite high.

 

[Lost Redditor]

The main shortcoming of all these churning strategies is dealing with refunds to cancelled credit cards. I've bumped up against that 3 times, and, depending on the financial institutions, they can be really annoying to deal with. ANZ was easy but then sent a physical check that I had to cash. Virgin Money was hard to get a hold of. NAB was straightforward, just took ages to process.

This year I've redeemed points for flights for my sister who is flying in from Europe and I just cancelled the card with which I paid for the taxes. Fingers crossed I don't need to cancel the booking

 

[GrahamBRI]

I definitely support keeping good records, as noted eligibility rules change as do the benefits/costs associated with renewal etc. I have 13 years of records (for myself and partner), both churning 3 cards per year, but never churning in succession or any pattern. I try to hold on to cards as long as I can to the card (so long as it is not costing me more than I am a getting rewarded for), this way I am establishing a positive spend history with the card provider....... for when I leave and return. I also take particular note to the provider's sister brands (eg Citi, is also Virgin Money and Qantas Money), so I can avoid churning in close succession to sister brands. As noted, Equifax maintains an excellent score despite churning, but it will also reveal any patterns to card providers, so hopefully by holding multiple cards for longer durations, I can somewhat mask my patterns....... this approach for me has not yet resulted in any declines.

 

[Cynicor]

The main shortcoming of all these churning strategies is dealing with refunds to cancelled credit cards. I've bumped up against that 3 times, and, depending on the financial institutions, they can be really annoying to deal with. ANZ was easy but then sent a physical check that I had to cash. Virgin Money was hard to get a hold of. NAB was straightforward, just took ages to process.

This year I've redeemed points for flights for my sister who is flying in from Europe and I just cancelled the card with which I paid for the taxes. Fingers crossed I don't need to cancel the booking

I would never book anything that has a hope of needing refunds on a churning card. That’s a huge hassle. I tend to just put on ongoing expenses- water bill prepay, power bill, tax bill etc.