00:00Credit card churning, a tactic favored by travel enthusiasts, involves opening credit cards to capitalize on welcome offers, then closing them before the annual fee recurs.
00:10But is it advisable? Let's get into it.
00:13Pros, quick accumulation of points and miles through welcome bonuses, access to additional card perks like lounge access and ride credits, and potential credit score boost for increased credit limit and point diversification.
00:27But these are the cons, according to the Points Guide.
00:30Negative impact on credit score due to frequent applications and closures encourages unnecessary spending to meet bonus requirements and requires time and effort to manage multiple accounts.
00:42Beware that many issuers like Chase and American Express enforce rules to limit card acquisitions, complicating churning strategies.
00:50Needless to say, credit card churning offers rewards, but demands careful planning and management to mitigate credit impacts and maximize benefits.
00:59If you feel up for the challenge, then get ready for some serious rewards.
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