How Churning Works
The core mechanic: issuers offer sign-up bonuses (SUBs) to attract new customers. Churners apply strategically, meet the minimum spend requirement (MSR), earn the bonus, and then decide whether to keep the card long-term or close it before the second annual fee hits.
Key Concepts in Churning
Successful churning requires understanding issuer velocity rules, credit score management, manufactured spending techniques, and point redemption strategy. The goal is maximizing points earned relative to fees paid.
Risks and Considerations
Opening many cards can temporarily lower your credit score due to hard inquiries. Missed MSR deadlines forfeit the bonus. Issuers may flag accounts for potential closing or clawback bonuses if they detect abuse patterns.