Understanding the new exclusion periods for credit cards
Is credit card churning slowly dying in Australia?
Hey friends,
So over the past few months, there have been quite a few changes to exclusion periods that many of the banks have implemented to their terms and conditions for credit cards.
If you’re someone who regularly churns credit cards, it’s important to be aware of these changes. These changes determine how long you need to wait before you can apply for a new credit card with the same bank after closing your previous one.
Understanding these changes can help you plan your applications more effectively, ensuring you’re not left waiting longer than necessary.
These changes have made credit card churning harder than before
🔑 Key Changes to Exclusion Periods
The formula for the new exclusion period is straightforward:
Date of Closure + Exclusion Period + 1 Day
This means that from the day you close your card, the bank will require you to wait for a specific period before you can reapply—and that period varies depending on which bank you're dealing with.
Here’s a breakdown of the new exclusion periods for major banks and credit card issuers in Australia:
Major Banks:
NAB: 18 months + 1 day
ANZ: 12 months + 1 day
CBA: 18 months + 1 day
Westpac, St George, Bank of Melbourne, Bank of South Australia (these banks all fall under the same umbrella company of Westpac): 24 months + 1 day
Citibank: 15 months + 1 day
Credit Card Providers:
American Express: 18 months + 1 day
HSBC: 18 months + 1 day
Suncorp: 12 months + 1 day
Citibank: 15 months + 1 day (but there are some exceptions Citi prestige has no exclusion period as an example)
Virgin Money: No exclusion period (you can apply for another card with them as soon as your previous one is closed) I talked about this here in a previous post Credit Card Churning Loophole Worked!
🔄 Planning Your Credit Card Strategy
These exclusion periods are designed to ensure that customers are not continuously applying for credit cards to take advantage of sign-up bonuses or rewards without maintaining a real relationship with the bank.
Here are a few tips for managing your credit card strategy under these new rules:
Stay Informed: Keep track of the exact date you close your credit card to ensure you apply for the next one at the earliest possible time.
Cards under the same bank with different rewards typically have different exclusion periods: Credit cards that are linked to different reward programs that are offered by the same bank often have different exclusion periods.
For example, you can apply for the NAB Qantas Rewards Premium and NAB Rewards Platinum Card at the same time.Plan Your Applications: With some banks like NAB, CBA, and Amex requiring up to 24 months before you can reapply, plan accordingly to avoid missing out on opportunities or being stuck in limbo.
Maximize Rewards: With Virgin Money having no exclusion period, you can take advantage of this when they are running specific offers and promotions.
Consider Multiple Cards: If you’re looking to maximise rewards or sign-up bonuses, consider spreading out your credit card applications across different issuers with varying exclusion periods.
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100,000 Amplify platinum points equate to 50,000 Velocity points. Pretty awesome deal for a $0 annual fee!
Note - You won’t be eligible if you’ve held another Bank of Melbourne, St.George or BankSA rewards card in the last 24 months.
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🎬 My Recent Video
The Qantas Frequent Flyer Program Keeps Getting Worse! - The Qantas Frequent Flyer program recently went through a devaluation, learn more about it in this weeks video!
Note - Some of the links in this newsletter are affiliate links and I will earn a commission, however, it comes at no additional cost to you and helps support me as a creator.
National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit Licence 230686) (“NAB”) is the credit provider and issuer of Citi branded credit cards. NAB has acquired the business relating to these products from Citigroup Pty Limited (ABN 88 004 325 080, AFSL and Australian Credit Licence 238098) (“Citi”) and has appointed Citi to provide transitional services.
Our/us/we means NAB unless the context otherwise requires it.
“Citi”, “Citibank”, “Citigroup”, the Arc design and all similar trade marks and derivations thereof are used temporarily under licence by NAB from Citigroup Inc. and related group entiti
FYI The Citibank Premier Card - trades under the NAB --> so would adopt the NAB exclusion period from date of closure -> 18 months +1 day (according to the T&C's on the website)