Would Churning Credit Cards Impact Credit Rating?

chrismatt on 17/05/2023 - 00:02

I've noticed many offers for new credit card customers, such as 12 months of 0% interest payment. I'm considering taking advantage of these offers and switching to a different card once the promotional period ends.

However, I'm curious to know if frequently moving from one card to another would have any impact on my credit rating. It's important to note that I consistently pay my credit card bills on time.

I am also curious to know which credit card is better to accumulate Velocity points ? I am currently using woolis, coles, 7/11, etc. My current credit cards don't have any velocity or QFF points associated with it. I am planning to leverage accumulation of points so that I can use it for domestic or international travels.

Financial Credit Card

Comments

  • Benoffie on 17/05/2023 - 00:10
    +1

    From previous posts, the churning doesnt impact.

    In terms of Velocity, have you checked out NAB Rewards? Bonus 140000 points deal atm.

    • SydStrand on 17/05/2023 - 01:39
      +1

      It can definitely impact.

      • Benoffie on 17/05/2023 - 17:44

        It's a fine line. Churning itself doesn't. The rate/number of churns can. Some people churn excessively, don't meet requirements, never pay down balances. Little wonder they get blacklisted over time.

  • soan papdi on 17/05/2023 - 07:50
    +1

    Virgin Flyer card is high, 4 months ($2500 spend per month) for 100K Velocity. Virgin High Flyer is better but more annual fee. Note taht both don't support Google Pay, only Samsung or Apple. Business cards are better but if you're eligible

    https://experience.velocityfrequentflyer.com/partners-offers…

    EDIT: The offer has changed since I applied. Was 100K (over 4 months, $2500/mo), now 60K (over 2 months, $1500/mo)

  • cashless on 17/05/2023 - 09:05
    +1

    such as 12 months of 0% interest payment
    I consistently pay my credit card bills on time

    These two statements make no sense. If you pay off the entire balance, why would you need 0% finance?
    Most people on here churn credit cards for one reason only, Bonus points.

    • chrismatt on 17/05/2023 - 09:39

      I wanted to push paying some of the bills to the future. That's where the 0% is coming into picture. In the past, I used to lag behind paying bills, and opted to go for a low interest cards. I have 2 low interest cards but none of them have any rewards associated with it. Since I have started traveling nowadays, I was thinking of leveraging some of them.

  • Duckie2hh on 17/05/2023 - 09:32
    +2

    Yes it impacts credit rating. Recommend churning once every 10 months*

    *Don't ask how I know.

    • chrismatt on 17/05/2023 - 09:39

      Got it :-).

  • Donaldhump on 17/05/2023 - 10:25
    +3

    i churn 4-6 a year and credit score is 930. so i would say as long as you pay them off its ok

    • Brodo Faggins on 17/07/2023 - 11:22

      Username needs to be changed to DonaldDump 🤣

  • thorry123 on 10/07/2023 - 09:35

    Also score depends on the credit agency.

    My score is over 800 on some agencies. But on Equifax it is below 600.
    They quote having excessive credit cards in a short period. ( 4 in 12 months )

    And "Applying for lesser types of credit or lenders" this likely referring to a Humm credit card that I applied to and have since closed. But my score does not bounce back since closing for some reason.

    This affected be being able to apply for a novated lease recently super frustrating.

  • howtocreditcardchurn on 11/07/2023 - 07:05
    +1

    I churn through 6 to 10 cards a year and have a credit score of 862. In my experience, as long as you pay off your cards in full and on time and only apply for one card at a time, your credit score should be fine.

    • Happyd on 11/07/2023 - 20:56

      Agree, same experience here

Login or Join to leave a comment
Login Join