Hey friends,
For those of us who live in Melbourne, hopefully everyone enjoyed the long weekend! In this weeks newsletter, I thought I’d take it back to the basics and talk about how I personally credit card hack for all the beginners out there who might not know what it’s all about!
Credit card churning involves applying for multiple credit cards to capitalize on sign-up bonuses and other promotional offers.
Just note that the strategy may not be suitable for everyone, and individuals should carefully evaluate their financial situation, creditworthiness, and goals before pursuing credit card churning!
Step 1: Choose a credit card to churn
When it comes to choosing which credit card to churn, I keep it simple: the more perks, the better! Here’s how I choose the right cards to maximize my rewards:
Waiting Period: Most banks won’t give you the signup bonus if you’ve had that card in the past 12 months. AMEX is a bit stricter with an 18-month wait. Always read the fine print to avoid missing out!
Minimum Spend: Each card has a minimum spend requirement, usually within 90 days. I pick cards with spend thresholds I can hit easily—ideally within a month. I never buy stuff I don’t need just to meet this requirement; that can actually eat into the value of my rewards.
Annual Fee: Most reward cards come with an annual fee, often higher for bigger bonuses. Sometimes the first year is discounted, especially if you’re a current member. I also look for ways to get that fee refunded later!
Bonus Rewards: Rewards vary widely—think frequent flyer points, cashback, lounge passes, and more. I choose based on what fits my current goals since these can change.
In terms of where to find the best cards to churn, well you can find them on my YouTube channel and here duh!
But in all seriousness, some of the websites that I recommend using are:
Step 2: Credit card application process
After choosing the credit card, I simply apply online via the credit providers website.
I’ll always ensure to check the sites that I mentioned above for exclusive offers and special promotions.
The sign-up process itself is simple enough and typically takes about 10 minutes. You’ll typically need your drivers license and some proof of income, like payslips.
I typically get preapproved instantly, with final approval coming in 1 to 5 days. Then my card arrives in the mail within 5 to 10 business days. Super straightforward!
Step 3: Start using your new card to meet the sign-up bonus!
Once I get my new credit card, I need to activate it through internet banking, over the phone, or at a branch. After that, I’m good to go!
My goal is to hit the minimum spend as quickly as possible, ideally within the first month. Most banks say they’ll reward the signup bonus within 3 months of reaching that spend, but I’ve noticed that if I hit it before my first statement, I often get my bonus points right away.
To meet that minimum spend, I pay for everything with my credit card—bills, groceries, insurance, you name it. I even link it to payment services like PayPal and Afterpay to make it easier.
Of course, I only spend on things I’d normally buy; chasing the minimum spend with unnecessary purchases can negate any rewards. For more tips, check out my article here!
Step 3: Start using your new card to meet the sign-up bonus!
Once you’ve received the sign-up bonus then feel free to cancel the card at anytime and then move onto the next!
Cancelling the Card: Once I’ve received my credit card bonus rewards, it’s time to cancel the card. I always pay it off in full first, then just call my bank to request the cancellation. It’s a quick and easy process!
Annual Fee Refund: I also ask for a pro-rata refund on my annual fee since I’ve only had the card for 1 or 2 months. This isn’t always guaranteed to work as a lot of banks have been getting more stricter with annual fee refunds. But there’s no harm in asking! If I’m successful, the refund typically comes via cheque or to my bank account and might take up to 2 weeks to process.
Post-Cancellation: After I cancel and receive a confirmation (like an email or letter), plus see that my credit report reflects the account is closed, I’m ready to start applying for my next credit card!
And that’s pretty much it, just continue to rinse and repeat and you’ll be swimming in frequent flyer points or gift cards in no time!
If you have any questions drop them down below.
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What do you with your points before cancelling your card?
I have churned my amex essential rewards card and want to close my account. However I am confused what I should do with my points as I will not be travelling anytime soon.
I am looking to churn a velocity frequent flyer card now.
P.s your videos have helped me start my journey in the credit card world and are my main source of knowledge for accumulating points and churning credit cards!