R Churning (2025)

FAQs

Is there a downside to churning credit cards? ›

One of the major risks associated with credit card churning is the damage it can do to your credit. This is because the things you'll have to do to get the best rewards — opening a lot of cards and spending on them regularly — can have a negative effect on your credit scores if you're not careful.

What is the Chase 5/24 rule? To be approved for a Chase credit card, you must have fewer than five approvals for credit cards within the last 24 months. When you apply for a Chase credit card, Chase will count the card you're applying for as part of your allowed five approvals.

TIME Stamp: Churning is too risky

Credit card churning has some short-term benefits, but the consequences can add up in a big way over time. It can negatively impact your credit score, hurting your ability to apply for a home loan or other funding.

In the points and miles world, a mention of the infamous 5/24 rule is sure to follow whenever a Chase card comes up. In short, this refers to the unofficial rule that Chase won't approve a credit card application for someone who has opened five or more new credit cards from any issuer in the past 24 months.

Credit card churning still happens, but many credit card issuers have updated the terms and conditions for their credit cards and rewards programs to stop it, or at least make it harder and less lucrative.

No, credit card churning is not illegal. However, it may be against the terms and conditions of some credit cards, which means the card issuer reserves the right to close your account or confiscate your rewards.

Churning happens when a broker conducts excessive or frequent buying and selling of securities. If a broker does this to increase total commissions instead of acting in the client's best interests, it's illegal.

Despite all of its benefits, there are plenty of downsides to being a credit card churner. For one thing, churning credit cards could turn into a time-consuming hobby, especially if you have to keep track of multiple credit card due dates and requirements for earning various bonuses.

Some people might wonder: What if I just open lots of bank accounts, and get lots of money? This strategy is called "bank account churning." While legal, it can be risky. Chasing after bank bonuses by opening multiple accounts in a row can help put more money in your pocket, but it might hurt you in other ways.

Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

What is the 2 30 rule for Chase? ›

Chase 2/30 rule: Too many new cards in one month? Some credit card experts believe that Chase is also likely to decline new card applications if you have opened two credit cards within 30 days. This is known as the "2/30 rule." Because I had just opened two new cards, Chase was reluctant to let me open another.

If you manage to get approved for 2 personal cards on the same day, Chase will combine them into 1 hard inquiry on your credit report. If you do happen to get approved for 2 cards in the same day or month, you're probably better waiting at least 90 days before applying for another card with Chase.

Credit card churning can be a lucrative technique for earning rewards and bonuses, but it comes with significant drawbacks, such as hurting your credit score and incurring high annual fees. It is essential to consider the risks involved before engaging in this practice.

Making late payments

One of the easiest credit card mistakes to fall into is making a late payment. Life gets busy with work or family obligations, and you forget to pay your credit card. And your payment history matters a lot and has the biggest effect on your credit score.

But account churning can be risky. You could lose your bank account bonus, incur extra fees, and even lose your ability to open new bank accounts in the future. Don't let a few hundred dollars trip you up and hurt your financial reputation.