What Is Credit Card Churning | Should You Churn Credit Cards in 2021?
In this video we are going to cover everything you need to know about the dark art of credit card churning and weather you should you churn credit cards in 2020.
CHECK OUT MY OTHER VIDEOS ON CREDIT CARDS:
TOP 5 BEST CASH BACK CREDIT CARDS IN CANADA 2020
https://www.youtube.com/watch?v=PwqVe9O9KPk
BEST CREDIT CARD IN CANADA (THE PLATINUM CARD AMERICAN EXPRESS)
https://www.youtube.com/watch?v=3kpWJFZsZEw
HOW TO TRAVEL FOR FREE USING CREDIT CARDS
https://www.youtube.com/watch?v=5XSmfg4Qi-Y&t=5s
WHY I NEVER USE A DEBIT CARD
https://www.youtube.com/watch?v=XadPOq5cxaY&t=18s
HOW TO INCREASE YOUR CREDIT SCORE FAST
https://www.youtube.com/watch?v=VZbQVpmBeRM&t=235s
Credit card churning is a very interesting topic because for some they may think it's boarder line in the grey area, and for some they love it because it helps them maximize their credit card rewards points.
There are no laws against credit card churning. However, the banks and the credit card issuers HATES it. This is why the banks and credit card issuers puts terms and conditions in their fine prints that prevents this kind of behavior. The reasons are obvious. When you do this you will gain a lot of points. Those points are being paid some how. So in a way the people that do this causes the banks and credit card issuers to lose money. Imagine running a credit card business where you pay for you employees and many overhead costs that comes with it while your customers profit from all of it in the process. Because of this they do not allow this and some banks and issuers are more strict than others.
The steps goes like this:
-Sign up for a credit card
-Meeting the minimum spend requirement
-Transferring out the points you just earned
-Canceling the credit card
-Repeat when they are allowed to qualify for the sign up bonus again
This is not supposed to be a credit card churning guide. Personally, I don't churn credit cards and wouldn't encourage it because of the cons that comes with credit card churning. Every time you apply and cancel a credit card it will show up on your credit history. Every time someone runs your credit for anything they are going to see all that history. So let's say you opened and closed 10 credit cards before that may raise a red flag. Because of this, it is also very easy for them to tell what you are trying to do if they do decide to audit you. And, if they do find out you are trying to take advantage of this kind of loophole that is not supposed to exist, they could potentially terminate your account.
Even though the rewards that comes with credit card churning is very promising, these are also the risks. For those reasons, I do not want to jeopardize my relationship with the bank or credit card issuer just to make a few hundred bucks when I can just earn that instead. This ruined relationship could potentially lose you thousands down the road when you try to get a mortgage or car loan because all off that history will show up on your credit profile whenever someone checks your credit score.
So, for those reasons I personally don't churn credit cards and do not recommend you to do so as well. This video was made to educate you some of the interesting ways some people earn their points and the extreme measures they take to do so.
Enjoy!
On this channel we upload 2-3 times a week on content that's meant to add value to your life. We talk about topics of personal finance, sales, and entrepreneurship. Subscribe so you won't miss an upload!
CHECK OUT MY OTHER VIDEOS ON CREDIT CARDS:
TOP 5 BEST CASH BACK CREDIT CARDS IN CANADA 2020
https://www.youtube.com/watch?v=PwqVe9O9KPk
BEST CREDIT CARD IN CANADA (THE PLATINUM CARD AMERICAN EXPRESS)
https://www.youtube.com/watch?v=3kpWJFZsZEw
HOW TO TRAVEL FOR FREE USING CREDIT CARDS
https://www.youtube.com/watch?v=5XSmfg4Qi-Y&t=5s
WHY I NEVER USE A DEBIT CARD
https://www.youtube.com/watch?v=XadPOq5cxaY&t=18s
HOW TO INCREASE YOUR CREDIT SCORE FAST
https://www.youtube.com/watch?v=VZbQVpmBeRM&t=235s
Credit card churning is a very interesting topic because for some they may think it's boarder line in the grey area, and for some they love it because it helps them maximize their credit card rewards points.
There are no laws against credit card churning. However, the banks and the credit card issuers HATES it. This is why the banks and credit card issuers puts terms and conditions in their fine prints that prevents this kind of behavior. The reasons are obvious. When you do this you will gain a lot of points. Those points are being paid some how. So in a way the people that do this causes the banks and credit card issuers to lose money. Imagine running a credit card business where you pay for you employees and many overhead costs that comes with it while your customers profit from all of it in the process. Because of this they do not allow this and some banks and issuers are more strict than others.
The steps goes like this:
-Sign up for a credit card
-Meeting the minimum spend requirement
-Transferring out the points you just earned
-Canceling the credit card
-Repeat when they are allowed to qualify for the sign up bonus again
This is not supposed to be a credit card churning guide. Personally, I don't churn credit cards and wouldn't encourage it because of the cons that comes with credit card churning. Every time you apply and cancel a credit card it will show up on your credit history. Every time someone runs your credit for anything they are going to see all that history. So let's say you opened and closed 10 credit cards before that may raise a red flag. Because of this, it is also very easy for them to tell what you are trying to do if they do decide to audit you. And, if they do find out you are trying to take advantage of this kind of loophole that is not supposed to exist, they could potentially terminate your account.
Even though the rewards that comes with credit card churning is very promising, these are also the risks. For those reasons, I do not want to jeopardize my relationship with the bank or credit card issuer just to make a few hundred bucks when I can just earn that instead. This ruined relationship could potentially lose you thousands down the road when you try to get a mortgage or car loan because all off that history will show up on your credit profile whenever someone checks your credit score.
So, for those reasons I personally don't churn credit cards and do not recommend you to do so as well. This video was made to educate you some of the interesting ways some people earn their points and the extreme measures they take to do so.
Enjoy!
On this channel we upload 2-3 times a week on content that's meant to add value to your life. We talk about topics of personal finance, sales, and entrepreneurship. Subscribe so you won't miss an upload!
