How to Open the Same Cards Again and Again
Travel rewards cards are an incredible tool for earning miles, points, and other perks to make your travel experiences more affordable and enjoyable. But what if you could repeatedly sign up for the same card, earning valuable rewards over and over again and essentially making this a forever hobby? It might sound too good to be true, but with a little planning and understanding of timing, you can take full advantage of travel rewards cards multiple times.
Understanding the “Churning” Concept
The strategy of signing up for the same card multiple times is often referred to as “churning.” Churning involves taking advantage of the introductory bonus offers that come with travel rewards cards, earning the welcome bonus when you sign up, and then moving on to other offers.
Here’s how it typically works:
Sign up for a travel rewards card with a lucrative sign-up bonus.
Meet the minimum spending requirement to earn the bonus points or miles.
After receiving the bonus, close the card or keep it open (depending on the terms and conditions).
Wait for a period (usually around 24 months) before applying for the same card again to earn the bonus once more.
*A key note to remember here is to NOT CLOSE YOUR OLDEST CREDIT ACCOUNT. You want to keep this open to establish that you have credit history.
The Key to Repeated Sign-Ups: The “Waiting Period”
One of the most important factors in signing up for the same travel rewards card again and again is the waiting period between applications. Credit card issuers typically have rules that prevent you from earning multiple bonuses in a short period.
Most travel rewards cards, such as the Chase Sapphire Preferred, have a waiting period of 48 months between earning a sign-up bonus on the same card. This means you can sign up for the card, earn the bonus, and then wait 4 years before applying again to earn the bonus once more. The American Express cards have a “lifetime” wait, which is more like 7 years waiting period, unless you get targeted offers sent to you.
It’s important to note that some cards might have different terms, and you should always review the specific terms of the card you are applying for to understand the exact rules.
Keep an Eye on the Annual Fees
While churning can help you earn a lot of points, travel rewards cards often come with annual fees. Depending on the card, this can range from $95 to $550 or more. The higher the fee, the more benefits you get. When signing up for the same card repeatedly, make sure you factor in the annual fee for each year you hold the card and whether it’s worth keeping.
Some people may choose to cancel the card after receiving the bonus to avoid paying the annual fee for the following year. However, if you want to keep the card for longer, look into benefits that offset the fee, such as travel credits, access to airport lounges, or other perks that can make the annual fee more manageable. We cancel many of our cards, but in some instances, it may make sense to downgrade instead of cancel.
Keep Track of Your Applications
When you’re opening cards, it’s important to stay organized. Track the cards you’ve signed up for, the dates you signed up, and the bonus deadlines. This way, you won’t accidentally apply for the same card too soon or miss an opportunity to earn another bonus. You can do this easily with a free app called Travel Freely. We love this app because I can add both my and my husband’s cards to keep track of both while not entering any personal cc info. They also notify you when your annual fee is about to hit your account.
Avoid the Pitfalls
While churning can be a great way to rack up travel rewards, it’s essential to avoid common pitfalls. Some potential challenges include:
Hard Inquiries on Your Credit Report: Every time you apply for a credit card, a hard inquiry is made on your credit report, which can lower your credit score temporarily. However, if you’re spacing out your applications and keeping track of your payments, your credit score will go back up within a couple of months. My husband and I open multiple cards each year, and we still maintain around an 800 score each.
Overextending Your Budget: Meeting minimum spend requirements is key to earning the bonus, but make sure you’re not overspending or going into debt to achieve that. Use the card for regular expenses that you would already be making to avoid financial strain.
Missed Payment Deadlines: Late payments can incur fees and hurt your credit score. Always set up automatic payments or reminders to stay on top of due dates.
Is Churning Right for You?
Churning can be a fantastic strategy for people who travel frequently and want to maximize their rewards, but it’s not for everyone. You should be comfortable managing multiple credit cards, staying organized, and understanding the impact on your credit score. If you’re disciplined with your spending, on top of your payment due dates, and strategic about your applications, churning can unlock incredible rewards for your next adventure!
SUMMARY:
Signing up for the same travel rewards card again and again can be an excellent way to rack up your favorite points or miles, helping you earn the trips of your dreams. However, it requires patience, discipline, and good planning. Keep an eye on the rules, stay organized, and be strategic about your applications, and you’ll be well on your way to making the most out of your rewards cards.
