Is Credit Card Churning Worth It? Pros, Cons & Cautions
Credit card churning — the strategy of signing up for cards to earn sign-up bonuses and then closing them — has become a popular way to earn free travel, cashback, and perks. But is it actually worth it in 2025?
In this article, we’ll break down what churning is, the potential upsides, the real risks, and how to churn responsibly (if you choose to).
What Is Credit Card Churning?
Credit card churning is the practice of repeatedly applying for new credit cards to earn welcome bonuses like travel points, miles, or cashback. Once the bonus is earned, many churners either downgrade the card, cancel it, or let it sit unused.
This is often part of a larger strategy called travel hacking, where savvy users maximize rewards for vacations and flights.
Why People Do It: The Potential Rewards
Here’s why churning has gained a cult-like following:
- Sign-up bonuses worth $500–$1,000+ in points or miles
- Perks like free hotel nights, airport lounge access, or TSA PreCheck credits
- Cashback or gift cards for minimal spending
With careful planning, some churners save thousands of dollars per year in travel costs.
The Risks and Downsides
While tempting, credit card churning comes with significant trade-offs:
Impact on Your Credit Score
- Hard inquiries from multiple applications can temporarily lower your score
- Short account age affects average credit history (15% of your FICO score)
- Lowered credit limits if you cancel cards, increasing utilization ratio
Denied Applications
Banks may decline your application if they suspect churning behavior. For example:
- Chase 5/24 rule: Denies new cards if you’ve opened 5+ in 24 months
- Amex limits: May not offer a bonus if you’ve had the card before
Missing Payments or Overspending
Trying to hit minimum spend requirements quickly can lead to:
- Interest charges
- Late fees
- Carrying a balance
Who Should NOT Try Churning
Churning might not be for you if:
- You carry a balance month to month
- Your credit score is below 700
- You’re applying for a mortgage or large loan soon
- You dislike managing multiple accounts or spreadsheets
How to Churn Credit Cards Responsibly
If you’re financially disciplined and still interested, follow these best practices:
Track Everything
Use a spreadsheet or app to track:
- Card open dates
- Bonus deadlines
- Minimum spend amounts
- Annual fees
Pay in Full
Never carry a balance. One interest charge can wipe out the entire value of your reward.
Space Out Applications
Limit to 1–2 cards every few months. Avoid multiple applications in the same week.
Know the Rules
Familiarize yourself with bank-specific restrictions:
- Chase 5/24
- Amex once-per-lifetime rule
- Citi’s 24-month “family of cards” policy
Downgrade, Don’t Cancel
To preserve credit history and credit limits, consider downgrading to a no-annual-fee version instead of closing the account.
Popular Cards for Churning in 2025
Here are a few cards that remain churner favorites (subject to change):
- Chase Sapphire Preferred®: 60,000 bonus points after $4,000 in 3 months
- Amex Gold Card: 60,000 Membership Rewards points after $4,000 in 6 months
- Citi Premier® Card: 60,000 ThankYou points after $4,000 in 3 months
Note: Always check the latest terms, fees, and eligibility.
Final Thoughts
Credit card churning can be a rewarding hobby — or a costly mistake. It all depends on how disciplined and organized you are.
If done carefully, you can earn valuable rewards and travel perks. But if mismanaged, you risk harming your credit and paying unnecessary fees.
Bottom line: Know your limits. Keep your financial health top priority. And if you decide to churn, do so thoughtfully and sparingly.