Churning refers to repeatedly opening new credit cards to earn sign-up bonuses, then closing or setting aside the card once the bonus is earned. It's popular in travel rewards communities, but it's not risk-free, especially for your credit profile.
The credit score cost
- Each new application triggers a hard inquiry, which causes a small, temporary dip in your score.
- Opening several accounts in a short window lowers your average account age, a factor scoring models weigh.
- Closing cards can shrink your total available credit, which may raise your utilization ratio on remaining cards.
It can backfire before a major purchase
If you're planning to apply for a mortgage or auto loan soon, churning in the months beforehand can lower your score right when it matters most.
Who it actually makes sense for
Churning tends to work best for people with an already-strong, well-established credit file, who pay balances in full every month, and who aren't planning a major loan application in the near future. For most people, one or two well-chosen cards used consistently will do more for their finances than chasing bonuses.
