Cancelling a credit card after joining to obtain bonus points?

[danwell]

Hi AFF

I've never had a credit card with any kind of points scheme attached to it, and after speaking to someone I met recently about their travels that were paid for by FF points, I'm kind of annoyed that I never looked into this myself. My wife and I currently have about $15k worth of credit card limits across three cards with no balances owing - they just sit there doing nothing "just in case". I realised we could be using credit card spends to earn points and benefits so I'm looking at making some changes.

We currently bank with CBA on no frills type cards, and have noticed that Amex are offering a deal with approx 50k points for new sign ups. I'm interested in maximising points collected and these bonus points seem like they're one of the easiest ways to accrue significant points.

What I want to know is this (I've tried Googling without much luck): if I sign up for a bonus allocation from Amex now, can I cancel the card six months down the track and sign up to a new provider for another sign up bonus, and still keep each lot of issued points? Or are there T&Cs in place to stop this?

I read that AMEX only give the bonus points to new AMEX customers who haven't had one of their products in the prev 12 mths (this is me - never had an AMEX), but maybe a VISA/MC with a similar points scheme and transfer across to FF?

I'm sorry if that doesn't make sense. As i said, I'm very new to this whole FF points thing

Cheers!

 

[smit0847]

Hi danwell

Welcome to AFF. Yes you are allowed to do this - it's known as 'churning' in the US and is very common there. Here's an explanation of how it works in the US - http://www.theman1000.com/credit-card-churning/ Please note the offers in Australia are not nearly as lucrative or common.

You will need to check the t's and c's of each card to ensure you comply with the requirements for the bonus points - such as being a 'new' customer - in my experience AMEX is very generous with this.

The only thing to watch is how multiple applications will affect your credit rating - if you are applying for other loans in the future (car, personal, home, business etc) you won't want to have more than 1 or 2 CC applications per year on your rating history.

 

[prozac]

If you are going to apply for an Amex do your research to see if you may get more bonus points by having someone refer you. These are the points added to your account just for signing up.
Those wanting the extra points via a referral can ask for a referral on the bonus points thread (AMEX Platinum Edge Referral bonus)(AMEX Platinum Edge Referral bonus).

 

[Limewood]

While I didn't cancel the AMEX card right after joining, I did get 75K QFF points for a yearly fee of $900 at time, I used the card a few times, once year was up cancelled it. A month later saw another deal that was on offer, had no luck as former AMEX CC holder deal was only for newbies I was told.