What Are The Pitfalls of Credit Card Churning?

Trying2SaveABuck on 27/10/2024 - 21:06
Last edited 27/10/2024 - 21:06

Been Churning PHI and Credit cards for the better part of 2 years

Never had an issue switching PHI I have been knocked back for CC because I had recently (within 12mo) had a Cc with HSBC but otherwise no issues so far..

My question is what are the dangers?

Can I double churn with my partner? Ie I apply and she applies for the same CC?

Will PHI knock me back if I churn them too often? (Say ever 24mo)

Has anyone had these experiences?

Last thing what else are people churning?

.I did a bit of the home loan cashbacks back around COVID but most of that has dried up?

Seems like 'Free money' for minimal effort.

But there has to be a catch? Someone has to be paying?

Financial Credit Card

Comments

  • CyberMurning on 27/10/2024 - 21:25
    +2

    Whats the benefit of churning phi? I dont see many offering big welcome offer like cc.
    I dont churn phi because my current plan is grandfathered and not available for new customers (and its very cheap)

    • Emphasise on 27/10/2024 - 21:40

      Usually stuff like 4-6 weeks free, helps when some people just get it for avoiding medicare levy surcharge

  • jv on 27/10/2024 - 21:57

    What Are The Pitfalls of Credit Card Churning?

    It impacts your credit score.

  • rambao9 on 27/10/2024 - 22:41

    I'm a churner with homeloans and an excellent credit score, so not sure. Just gotta make sure you psy your bills.

    • AustriaBargain on 27/10/2024 - 23:49
      +10

      Pay your bills Gangnam Style 😎

  • JIMB0 on 27/10/2024 - 22:42
    +3

    There's no drawbacks if you don't carry a balance. It's all funded by people who do. Keep hitting it hard until you get knocked back, then give it a rest.

  • sumyungguy on 28/10/2024 - 01:19

    I think it's all good; if the credit card issuers actually cared they'd prevent it.

  • SnowDragon on 28/10/2024 - 06:43
    +7

    A friend worked at CBA and I asked if they cared about people who spend 3k, get x points and then cancel the card paying no interest.

    He said no because for every person who does that, there are 10 tradies signing up and buying a brand new Ute and making minimum repayments.

  • Aureus on 28/10/2024 - 07:45

    None. It's free money.

  • cashless on 28/10/2024 - 08:54

    The pitfall?
    Amex.
    Due to multiple churns over many years, they no longer want my business.
    Good while it lasted though.

  • Nugs on 28/10/2024 - 19:07

    "Someone has to be paying?"
    Everyone else. Companies pay staff to handle incoming and leaving customers, be it phone plans or health insurance. Staff costs passed onto customers
    .

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