This post may contain affiliate links. Please see my disclosure to address your curiosity.
Credit card churning. It reminds me of speeding when I’m late for work.
Is it effective? Yes. I get to work on time. Is it risky? Yes. The cops are out there watching which sounds very X-Files. Similar to when I am late for work, I don’t do it all the time but occasionally when the opportunity presents itself.
Churning credit cards can be risky. Hello, former spending problem. Plus, having a lot of credit cards isn’t a good look for a credit score. Risks aside, it can be lucrative.
I have received discounted plane tickets. Plus, this is one of the ways I that will help me to achieve saving $5,000 in less than 12 months.
Get ready to give the side-eye and follow that up with a raised eyebrow…
NEW LEVEL OF SAVING: CREDIT CARD CHURNING
I want to level with you. I am not an expert. I would consider myself a novice on this topic. I know just enough to get by and make some extra money for my greedy travel account.
One day that was every inch of normal, I received a credit card offer in the mail. Typically, I throw them away without a thought but for whatever reason, I didn’t this time. Instead, I investigated the offer, which turned out to be legitimate.
If I spent $500 in 3 months I would get $200 back. This card also has 2% cashback on groceries, restaurants, and 3% on gas. This is better than some of my other credit cards. This one also provides discounts to museums which was probably the clincher because I am a knowledge nerd.
I had some big bills coming up so I decided to give it a whirl.
PLANNING IS WINNING
As with any financial win, this also took strategic planning. I needed to ensure that my big bills were being paid for by this card.
My big bills are car insurance and registration which are due in the fall. I set up reminders about paying for those
lame purchases with the new credit card.
If the card had a membership fee, like American Express, I would put a reminder in my phone to close the account before the fee initiates. Which is what I did when I churned a American Express for discounted plane tickets.
WORKING WITH YOUR #1 ADVOCATE
One of the reasons I get offered credit cards frequently is because my credit score is at the baller status of 800+.
It has taken many little steps to fine-tune that sexy number including checking on my credit once a year with Annual Credit Report. I also pay my credit cards off every month and I don’t have any loans outside of my mortgage.
That’s a fun story, we refinanced twice with the recent market calamities and now have an APR at 2.5%! Is this what it feels like to win the mortgage game?
EXPERIENCE IS THE SPRINKLES OF LIFE
If I didn’t have all that in my favor, I wouldn’t have pursued credit card churning. There is still a significant risk of opening a credit card and not being able to keep track of the nuances.
After a long road of financial experience, I feel pretty confident with this occasional risky business.
Are you on the credit card churning bandwagon? Or are you giving me the side-eye right now?
Want to save more and explore?
When you subscribe to Budget Life List you’ll get exclusive access to a digital escape room. Test your skills to see if you can escape to a Hawaiian haven!
Ready, set, vacate!