Credit Card Churning May Get More Difficult.

[Renato1]

I still can't come to grips with the issue of reducing credit limits/closing cards in order to churn, versus the functionality of keeping keeping current useful cards open with their big limits, gained in more generous times.

Last year in Europe, I spent the extra dollar several times paying off my 28 Degree card while over there, and still had over $7000 debt on it to pay off when I got home. So it saved me about $300 relative to using other cards with fees. I can't close this card, it is too valuable.

My Jetstar Mastercard was great in earning me a voucher, and it costs me nothing to hold, and gets me Jetstar discounts - but I'm not using it now, as I don't anticipate flying Jetstar till next year some time. Any voucher earned during much of this year would probably expire unused. But if I close this card, I'm unlikely to get it back fee-free, and will have to muck around getting it back when it becomes useful to have again.

My Qantas Everyday card is earning a healthy 0.75 cents per dollar on non supermarket transactions when I'm not using the Jetstar card, and it only costs $49 a year. Hard to let it go, though I probably could.

My Amex Platinum Edge earned me around 60,000 MR points last year, costs me $149 a year in fee and I get the $200 travel credit. Even with the devaluation in April, it is still a decent card to hold - I suppose I could reduce the credit limit to $6000, but even then may have too great an amount in total credit limits to be able to qualify for a new card - unless I get rid of the Qantas card and reduce the limits on the other cards to paltry amounts.

Interesting how my favourite cards aren't bank ones.

My conclusion is that unless one is on a very big income, or one is willing to endure the risk and loss of functionality associated with being on tiny credit limits, credit card churning is too hard now for some one like me.
Regards,
Renato

 

[Dr Ralph]

I still can't come to grips with the issue of reducing credit limits/closing cards in order to churn, versus the functionality of keeping keeping current useful cards open with their big limits, gained in more generous times.

For me it's simple.

Earn around 100,000 points in a year by being loyal and keeping 1 or 2 cards for the year. Or earn 500,000+ points in the same year by churning cards.

 

[Renato1]

For me it's simple.

Earn around 100,000 points in a year by being loyal and keeping 1 or 2 cards for the year. Or earn 500,000+ points in the same year by churning cards.

I don't think what you say negates my conclusion in any way.

Life is tougher for us superannuation pensioners. The cards we can apply for generally don't have the big bonuses we could apply for when working, and for the ones we do apply for, we spend ages explaining to people somewhere in the Philippines or India that our net income is nearly the same as our gross income.

I have the additional burden of being out of the country on vacation for three months of each year - in between planning vacations, and then doing maintenance when we get back - it doesn't leave much time for credit card closures and applications.
Regards,
Renato

 

[Lynda2475]

For me it's simple. Earn around 100,000 points in a year by being loyal and keeping 1 or 2 cards for the year. Or earn 500,000+ points in the same year by churning cards.

Its somewhere in between for me, keep 2 decent earning cards that have no out of pocket costs - one provides a flight credit (equal to the annual fee), one has no fee and both give lounge access and insurance benefits, whilst churning 1-2 others per year (earning 120k-240k a year in sign-on bonuses - provided they have zero or reduced first year fees). Its luxury one has whilst earning a decent salary, as it easy to prove income.

A family friend who recently retired but is yet to start drawing a pension form her super (currently living off share earning) is currently struggling to get the cards she wants, and regrets not apply for a keeper Amex and a Keeper Mastercard/Visa whilst she was still working.

Still waiting on my new passport so I can get a credit report.

 

[rock86]

I don't think what you say negates my conclusion in any way.

Life is tougher for us superannuation pensioners. The cards we can apply for generally don't have the big bonuses we could apply for when working, and for the ones we do apply for, we spend ages explaining to people somewhere in the Philippines or India that our net income is nearly the same as our gross income.

I have the additional burden of being out of the country on vacation for three months of each year - in between planning vacations, and then doing maintenance when we get back - it doesn't leave much time for credit card closures and applications.
Regards,
Renato

Oh the struggles of a baby boomer.........

 

[Renato1]

Oh the struggles of a baby boomer.........

I'm glad you can appreciate it.
It's all about constant scrimping and saving.
Last time I was in hospital for a knee operation, they wanted to discharge me at 5pm. I asked them to please discharge me at 7pm, as I wanted the dinner my health insurance had paid for.
Regards,
Renato

 

[travelislife]

I'm glad you can appreciate it.
It's all about constant scrimping and saving.
Last time I was in hospital for a knee operation, they wanted to discharge me at 5pm. I asked them to please discharge me at 7pm, as I wanted the dinner my health insurance had paid for.
Regards,
Renato

But you holiday overseas for 3 months a year!? Something doesn’t make sense there!

 

[rock86]

I'm glad you can appreciate it.
It's all about constant scrimping and saving.
Last time I was in hospital for a knee operation, they wanted to discharge me at 5pm. I asked them to please discharge me at 7pm, as I wanted the dinner my health insurance had paid for.
Regards,
Renato

I think you missed the tongue that was firmly in my cheek with that reply (as alluded to with the last emoji )

 

[Renato1]

But you holiday overseas for 3 months a year!? Something doesn’t make sense there!

Accumulated savings help too.
Cheers,
Renato

 

[burmans]

My conclusion is that unless one is on a very big income, or one is willing to endure the risk and loss of functionality associated with being on tiny credit limits, credit card churning is too hard now for some one like me.
Regards,
Renato

Each to their own, I read your post and think that these "problems" don't seem that big a problem, all solvable relatively easily. But if you thinks it's too hard for you then it's too hard for you!

 

[Renato1]

Each to their own, I read your post and think that these "problems" don't seem that big a problem, all solvable relatively easily. But if you thinks it's too hard for you then it's too hard for you!

I think one other factor I alluded to in some other post here, is not knowing exactly what credit limit one will get from a credit card provider. Under the old system, putting down the same credit held with other card providers in an application - with exactly the same details for income, resulted for me in credit limits on new cards of anywhere between $6000 and $14000. $14,000 I can live with, but $6000 is too low for me to feel comfortable and secure with for unanticipated events.

If I knew I was always going to get the bigger credit limit in a new application, it would be easier to make a decision.

Though, as you effectively say, personal preference is what it ultimately comes down to.
Regards,
Renato

 

[Lynda2475]

From what i can see the highest earning cards (sogn on bonus aside) seem to have min credit limits of $15K

 

[Limewood]

In our case we both took out the Qantas Amex card offer, 100K each then with 9 referrals another 270K, we had nice flights to JFK on CX in J, not churned or applied for others for 18 months or so but expect to.

 

[Dr Ralph]

From what i can see the highest earning cards (sogn on bonus aside) seem to have min credit limits of $15K

Not uniform. It varies. I had an AMEX with a $3000 limit earning 3pts per $.

 

[Lynda2475]

I had an AMEX with a $3000 limit earning 3pts per $

Amex points I assume and not actual airline points?

Best i've seen on Amex is 2 QFF per $ (3 FF/$ if spend is on Qantas).

 

[andye]

Amex points I assume and not actual airline points?

Best i've seen on Amex is 2 QFF per $ (3 FF/$ if spend is on Qantas).

Amex Edge earns 3 airline miles at supermarkets. For a long time it was very easy to buy gift cards to 'spread' that earn rate elsewhere

 

[ragingsheep]

Not uniform. It varies. I had an AMEX with a $3000 limit earning 3pts per $.

lol Amex. I have no idea how they manage their responsible lending obligations.

They didn't even bothered to do a credit check with my last application and it's still not reported to any of the 3 credit agencies. I also know that they automatically gave a new grad a limit over $20k instantly without any proof of income or full time employment history.

 

[albyd]

I've had a different experience with Amex. I've noticed they're no longer reporting to Equifax and my other card providers are (Amex were reporting at one stage but no one else was). In looking at a recent Credit report, Amex (and a few other banks) seem to be accessing my file every few months (my last application with them was a few years ago). Assuming this is to spot any issues before they become a problem. This activity would indicate continuous responsible lending to me. YMMV.

 

[Lynda2475]

Also aren't the responsible lending criteria different for a credit card than a charge card - lots of the Amex cards are still charge cards.

 

[theblank]

But if you thinks it's too hard for you then it's too hard for you!

Too hard is a recurring theme.