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What Is Credit Card Churning?

6 min read

Last Updated: June 27, 2025

Table of contents

Key Takeaways

Credit card churning may happen when a person opens multiple credit card accounts in order to get welcome and sign-up bonuses, and then closes them.
Credit card churning might impact your credit score and lead to excess credit card debt.
A less risky way to earn credit card rewards is to choose a card that aligns with your spending habits and use that card responsibly.

Credit card churning is the practice of opening and closing credit card accounts in order to get sign-up bonuses and credit card rewards, such as cash back or miles. Credit card churners often sign up for multiple cards at a time, keep them open long enough to get the introductory bonus rewards, and then cancel the cards (ideally before incurring any fees).

While credit card churning might seem like a good way to get more rewards, you risk hurting your credit score and may rack up avoidable debt.

How does credit card churning work?

Credit card churning happens when a person applies for many credit cards to collect big sign-up and welcome bonuses. Once they get the rewards, a credit card churner usually stops using the cards or cancels them. Then, they may start over by applying for a new credit card with a different card issuer.

Credit card churning is legal, but it’s generally not a good idea.

When you juggle multiple cards, you might have a hard time keeping track of each payment due date and credit card balance, increasing your risk of missing payments and overspending.

Many credit card issuers have put guidelines in place to limit or prevent credit card churning.

How does credit card churning impact your credit?

Opening and closing credit card accounts in quick succession affects several factors that credit reporting agencies look at.

Credit card churning means more hard inquiries

Every time you apply for a credit card, the issuer typically requests access to your credit report and credit score to determine your creditworthiness. Credit bureaus record these checks on your credit report as hard inquiries. A hard inquiry may bring down your credit score by a few points and stay on your report for up to two years.

One hard credit check may not do much lasting damage to your credit score. But several new card applications in a short time frame might suggest financial instability and hurt your credit score more severely. Credit card churners may experience multiple hard credit inquiries in quick succession for every new credit card application.

Credit card churning may hurt your credit utilization ratio

Your credit utilization ratio is the amount of credit you’re using compared to the total amount of credit you have available. When you open multiple credit card accounts, you increase your overall available credit, which brings your credit utilization ratio down. But the benefit may not last.

Some credit card issuers require cardmembers to spend a certain amount within a certain amount of time in order to earn the welcome bonus. That means a credit card churner may rack up substantial credit card debt trying to secure each card’s bonus. This extra spending may cause your credit utilization ratio to spike and may hurt your credit.

Credit card churning may lower the average age of your accounts

When you open a new credit card or close an old one, you bring down the average age of your accounts. Credit reporting agencies typically prefer borrowers who have a lot of experience managing credit. That means a long credit history and older accounts tend to be better for your credit score.

Is credit card churning worth it?

Credit card churning typically isn’t worth the risk. In addition to potentially affecting your credit score, it may cause other problems.

Credit card churning may make it harder to get credit in the future

If churning credit cards lowers your credit score, it may be more difficult for you to qualify for new credit in the future. Or, if you do qualify for a new card, you might not be able to get the best credit card options or highest credit limit available.

You may also have trouble qualifying for other forms of credit, like a mortgage or car loan.

Credit card churning may result in more interest and fees

Credit card churning can come at a cost. You need to keep track of each annual fee, credit card balance, reward program, and payment due date to avoid late fees and interest charges.

You may also need to meet the minimum spending requirements soon after opening each account to qualify for sign-up bonuses. But if you don’t pay off your balances before the promotional rate periods end, you might begin accruing interest charges.

If you fall behind on your payments, you may also owe late fees. These interest charges and fees may offset the rewards you earn for each new credit card account.

Credit card churning may lead to excess debt

A credit card churner might end up with substantial credit card debt. To meet the minimum spending requirement for sign-up bonuses, you may quickly end up with debt that’s difficult to manage, especially as your balances accrue interest.

Even if you don’t end up with overwhelming credit card debt, having multiple cards makes it harder to keep track of your spending and budget effectively.

Is there an alternative to credit card churning?

Yes, there are alternatives to credit card churning.

Instead of focusing on short-term gains like sign-up bonus points, it’s better to choose cards that offer rewards and benefits that align with your spending habits and financial goals.

Did you know?

A good way to maximize your credit card rewards is to find the best credit card for your current spending habits and then use that card responsibly.

Learn More

If you’re unsatisfied with your current credit card rewards, consider reaching out to your credit card issuer about potential upgrades or alternatives.

It’s not always a bad idea to carry multiple credit cards. But instead of credit card churning, you might want to apply for one new rewards credit card that complements your existing credit card account and keep it. For example, if you already have a gas rewards credit card but you take frequent vacations, you may want to look at travel credit cards, too.

The bottom line

Credit card churning may seem like a clever strategy for maximizing credit card rewards. But the risks and disadvantages generally outweigh the benefits. A single credit card with a credit limit, interest rate, and rewards program that matches your needs may be a more effective tool for maximizing your rewards, as long as you use it responsibly.

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