How to Churn Credit Cards While Maintaining Credit Score?

LCatalystX on 25/06/2021 - 00:18
Last edited 25/06/2021 - 09:22 by 1 other user

When you churn a card and get the rewards points, how long should I wait after I get the points to burn the card and apply for a new credit card with a another bank so It doesn't affect my credit score/history? Should I wait a bit between the time I receive the points and the time I cancel the card? If so, how long sounds reasonable?

Also, with ANZ rewards points, can I convert those points them to Qantas points or do ANZ have their own frequent flyer system? I applied for an ANZ credit card that gives you 120000 points if you spend $1500 in 3 months and was trying to see if I could convert them to Qantas points but there's no information on their website

Thanks

• 

  Ughhh on 25/06/2021 - 00:33

  +1

  trying to see if I could convert them to qantas points but there's no information on their website

  I assume you applied for the Platinum card?
  If so, its stated on their website…

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  barryallen on 25/06/2021 - 00:35

  +1

  'ANZ rewards points, can I convert those points them to qantas points' - No unfortunately you can't. They used to offer Velocity at 2:1, and Krisflyer/Asia at 3:1, but I think that has been suspended at the moment due to COVID.

  I think all thats on offer right now is the gift cards you can exchange the points for, as well as the rewards store

  • 

    CatalystX on 25/06/2021 - 01:24

    I'm looking at the link @ughhh had linked me and seems like they still offer velocity frequent flyer which I guess is good enough.e Thanks for your response

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  p1 ama on 25/06/2021 - 00:50

  +3

  When you churn a card and get the rewards points, how long should I wait after I get the points to burn the card and apply for a new credit card with a another bank so It doesn't affect my credit score/history?

  There's no straight answer. Credit scores are complex and there are more factors than whether you apply for a credit card. I have a background in risk, so I understand how this works quite well (though not personal credit risk, but the ideas are similar).

  Basically, if you want a good rule-of-thumb, when you apply for credit, you will see a dip in your score, when it is approved, you will generally see an increase in your score, more often than not, to a higher level than where you started before you applied.

  What you want to avoid is getting rejected - this will harm your credit score, as will "farming" for an acceptance (i.e. just applying everywhere and hoping to get something).

  Should I wait a bit between the time I receive the points and the time I cancel the card? If so, how long sounds reasonable?

  Generally there are only so many promotions going on at the same time. The time limit on them is usually 1 - 2 years before you're eligible for more promotions, so if you're churning, you'll run out of offers quite quickly.

  • 

    CatalystX on 25/06/2021 - 01:25

    thanks mate

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  cashless on 25/06/2021 - 08:23

  +5

  I would think most OzBargainers follow this routine:
  * Apply for and get the card.
  * Make minimum spend.
  * Receive points/rewards and spend/use them.
  * Close account and move onto next card

  • 

    NoPetNoKid on 26/06/2021 - 02:08

    and by doing this, try your best to avoid the annual fee, late payment fee or any interest.