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
    -4

    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
      +12

      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
    +10

    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
    .

  • blueyez on 12/11/2024 - 23:30

    Some banks are more fussy when you apply. I think Coles or Citibank hate approving a second card if you already have one with them. You can contact them to see if you can provide anything further if you've been rejected to see if they are willing to review.

    I'm a slow churner over many years, I like changing them for different perks.

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