So after you spend 3K and get the 55,000 points....then what? What do you do with the card?
Well, for me, there are a few cards that are "keepers" to put spend on all the time. I've had the CSP since April and plan to keep it even when the fee hits.
Some people get the bonus, book flights, cancel the card, and then wait two years (the time issuers usually require) to apply for the same card again, rinse repeat.
How many promotions do you try to do a year?
I got 4 cards this year, but 3 were for keepers (Chase Sapphire Preferred, Chase Freedom, Amex SPG)
Next year I will probably get some burner type cards like the Barclay's Arrival, United, and Southwest. I really want one more keeper card being the Chase Ink business card.
having all these cards opened just for the promotions...does that hurt your credit score?
The credit applications deduct a few points but they come off after a few months. Churners usually do an "App O Rama" every 6 months on the same day so that the credit issuers can't see that they are applying for say, 5 cards at once. This will ding the score for a while but it will recover in time for the next App O Rama. However, at the same time, their credit limits are rising and utilization rates are lowering, so that is HELPING their credit scores.
Lastly, the real drawback is some issuers (Barclays) don't like seeing churners use their cards, and my reading says they deny people routinely who they think are just churning their cards. If you play the game correctly, you are fine.
This post was edited on 11/21 at 1:26 pm