Gaming the Rewards System
CreditCardChurning describes the practice of repeatedly opening credit cards for sign-up bonuses, meeting minimum spend, earning rewards, then canceling and repeating. The r/churning subreddit (150K+ members) systematized strategies to maximize travel rewards.
The Basic Strategy
- Research cards with highest sign-up bonuses (60K-100K+ points)
- Apply and get approved (requires good credit 700+)
- Meet minimum spend requirements ($3K-5K in 3 months)
- Earn bonus points
- Downgrade or cancel card (avoiding annual fees)
- Wait cooldown period (6-24 months)
- Repeat with same/different card
Advanced Techniques
Manufactured Spending: Creating artificial spend to meet minimums without actual purchases (buying gift cards, money orders, Venmo/PayPal cycling). Banks cracked down 2017-2020.
Player 2 Mode: Using spouse/partner applications to double bonuses, transfer points between household accounts.
Business Cards: Applying for business cards (often easier approval for “businesses”) to accumulate bonuses beyond personal card limits.
Bank-Specific Rules
Chase 5/24 Rule: Instituted 2015, auto-deny if applicant opened 5+ cards in 24 months. Churners strategized application order.
Amex Pop-Up: 2018+ Amex began denying bonuses to frequent applicants with “not eligible for bonus” message.
Citi 24-Month Language: Bonus ineligible if earned same bonus within 24 months.
Peak Era & Decline (2015-2020)
Golden age 2015-2018: easily obtainable 100K bonuses, minimal restrictions. Banks tightened significantly 2018-2020:
- Lower bonuses
- Stricter approval criteria
- Lifetime language (one bonus ever per card)
- Shutdowns for aggressive churning
Risk Factors
- Credit score impact from multiple hard inquiries
- Risk of account shutdowns
- Annual fee juggling complexity
- Time investment for marginal returns as bonuses declined
COVID-19 Kill Shot
Pandemic crushed churning: travel impossible, bonuses slashed, banks risk-averse. Many churners quit entirely or shifted to cashback strategies.