Travel hackers swear by a strategy called credit card churning, which involves opening a credit card with a large sign-up bonus, using the points for free travel or services, and then closing the card—only to repeat the process with the same or a different card later on.
“Credit card churning is simply applying for new credit cards regularly to gain the big sign-up bonuses that come with them,” explains Stephen Weyman, a personal finance expert. According to Weyman, one good sign-up bonus can net you $700 or more in free flights. Thanks to churning, he and his wife have traveled for free to destinations like Paris, Toronto, Chicago, and the Philippines using credit card points.
While this might sound too good to be true, it’s very real—if you’re willing to put in the effort. Credit card churning requires thorough research, diligent tracking, and careful attention to due dates, but if done right, you could land free flights, hotel stays, and other rewards.
How to Successfully Churn Credit Cards
Chris Morgan, a Toronto-based points chaser, explains his straightforward approach: open the card, spend enough to get the sign-up bonus, pay it off, use the points, and then close the card. After a “cooling off” period of about three months, he often reopens the same card or moves on to a new one.
Sign-up bonuses are the key to churning. “These bonuses are the crux of serious travel hacking,” says Matthew Lau, another travel hacker. “It’s way faster to earn 25,000 points through a sign-up bonus after spending $1,000 than by collecting points through normal spending.”
Here are four strategies for successful credit card churning:
1. Play by the Rules
The process begins by meeting the spending requirements that trigger the sign-up bonus. “Some points come with your first purchase,” says Weyman. “But more commonly, you need to spend a set amount within the first three months.”
Make sure you read the terms and conditions so you know how much you need to spend and within what time frame. If there’s an annual fee, check whether it’s waived for the first year. If not, calculate whether the value of the points exceeds the cost of the fee.
2. Redeem Wisely
Once you’ve earned the points, the next step is maximizing their value. Some cards offer travel rewards like flights and hotel stays, while others offer cash back or the ability to buy merchandise.
To get the most out of your points, flexibility is key. Flying midweek, during off-peak times, or accepting long layovers can help stretch your rewards further. Be aware that while points might cover flights or stays, you’re often still responsible for taxes and fees, which can sometimes make the deal less appealing.
Weyman advises booking early and being flexible with dates, times, and routes to snag the best deals. “If you’re picky, redeeming points will drive you crazy,” he warns.
3. Know When to Close (and Reopen) Cards
Once you’ve redeemed the points, it’s time to close the card—but it’s not always straightforward. Some credit card companies won’t let you reopen the same card to get the bonus again, or they might have a waiting period. Always read the terms and conditions to know the rules before you close.
Also, check what happens to any leftover points. Some programs allow you to transfer points to other accounts, like Aeroplan or Air Miles, while others may expire upon closing the card.
Keep an eye on the card’s annual fee as well. If your plan is to close the card, you’ll want to do so before being hit with a hefty renewal fee.
Travel Credit Cards
4. Monitor Your Credit Score
Churning credit cards can impact your credit score, so it’s important to stay organized and mindful of your credit health. Lau, who juggles 10 cards at once, compares it to a full-time job. Morgan carries up to six cards and emphasizes the importance of knowing when payments are due and tracking when the first year (often fee-free) ends.
A key rule is to never miss a payment. Late payments can damage your credit score, affecting your ability to get future cards. Keep your credit utilization (the balance on your card relative to your credit limit) at 35% or less to maintain a healthy score.
Weyman advises against applying for too many cards too quickly. He recommends no more than one or two new cards per year to avoid looking like a risk to lenders. Holding onto your oldest no-fee cards can also help increase the average age of your credit accounts, which is a factor in credit scoring.
If you’re denied a card, Morgan suggests calling the credit card company. “Sometimes it’s just a matter of clarification, and they’ll reverse their decision,” he says.
For those who churn aggressively, opening five or more cards a year, Weyman recommends being extra cautious. Sign up for credit monitoring services to keep an eye on your score and alert you to any suspicious activity.
Credit card churning can be a lucrative way to earn free travel and other rewards, but it’s not without risks. Staying organized, managing your payments, and monitoring your credit score are crucial. If you can do all that, you might just find yourself flying to Paris—or anywhere else you’ve dreamed of—for free.
