Credit Card Churning May Get More Difficult.

[mviy]

I don’t have many direct debits so the only card I keep indefinitely is one that has no annual fee but doesn’t earn any points.

It is nice to have at least one points earning card at all times though.

Changing cards is annoying but it’s worth it for the benefits you get. The points I can get each year from changing cards would take me a huge number of years to get from regular spend especially with the reductions in regular earn rates.

 

[GSP]

That's not a bad number in my experience whilst I'm waiting for points to credit, or just about to cancel plus at least 2 base cards that are held onto. I wonder what others think, it's an interesting q.

I have that I keep:
- CBA Black Amex/MC combo (via Wealth package) - Amex handy for international spend.
- Woolworths Platinum - don't spend anything on it, just for the 10% shop once per month.
- Bankwest Zero Platinum - Use purely for international spend (along with CBA Amex), so only on holidays.
- Rest are churners and only have 1 or 2 going at any one time, actually come to think of it had 3 open for a period of time.

I've never had a rejection and over the past 2 years (when I really started this churning thing) I've had at a guess close to 15 cards.

 

[GSP]

I have that I keep:
- CBA Black Amex/MC combo (via Wealth package) - Amex handy for international spend.
- Woolworths Platinum - don't spend anything on it, just for the 10% shop once per month.
- Bankwest Zero Platinum - Use purely for international spend (along with CBA Amex), so only on holidays.
- Rest are churners and only have 1 or 2 going at any one time, actually come to think of it had 3 open for a period of time.

I've never had a rejection and over the past 2 years (when I really started this churning thing) I've had at a guess close to 15 cards.

To add, once the Woolworths annual fee comes up in November if it is not waived then that goes, and if I do move off CBA when that annual wealth fee comes up (also in November) then the MC goes (the Amex already advised by CBA that's gone then). So I may have to keep one of my churners.

 

[Renato1]

If you've got 4 open cards, and churning others, then you probably will have some issues. I may be in the minority, but if you're main strategy is to churn for bonus points (and not through high value spending), isn't having 4 cards open at a time a little excessive?

Thanks, funny our differing perspectives on the cards' utility.

28 Degree card - for fee-free usage overseas. Saves me $250 to $300 per big trip. Costs nothing.
Amex Professional Platinum Edge - for groceries, earns 60,000 points a year Costs $149
Qantas Premier Everyday - for non-Amex purchases to earn Qantas points Costs $49
Jetstar Mastercard - saves me money every time I book a flight or fly Jetstar, earns Jetstar dollars Costs nothing.

How can I do without each of them? Technically, I could do without the Qantas card and just use the Jetstar card for non-Amex purchases. But when I hit 100 Jetstar dollars and am sent the voucher, I have to use it in six months - and the reward becomes worthless if I can't use it, unlike the Qantas card reward which is usefull all the time.

Also, for biggish spends, it would be embarrassing when I go to a prosthodontist and he and his associates charge me $8,000 for an implant if I didn't have the credit to cover it (and miss out on at least 4000 Qantas points in the process).
Regards,
Renato

 

[rock86]

Thanks, funny our differing perspectives on the cards' utility.

28 Degree card - for fee-free usage overseas. Saves me $250 to $300 per big trip. Costs nothing.
Amex Professional Platinum Edge - for groceries, earns 60,000 points a year Costs $149
Qantas Premier Everyday - for non-Amex purchases to earn Qantas points Costs $49
Jetstar Mastercard - saves me money every time I book a flight or fly Jetstar, earns Jetstar dollars Costs nothing.

How can I do without each of them? Technically, I could do without the Qantas card and just use the Jetstar card for non-Amex purchases. But when I hit 100 Jetstar dollars and am sent the voucher, I have to use it in six months - and the reward becomes worthless if I can't use it, unlike the Qantas card reward which is usefull all the time.

Also, for biggish spends, it would be embarrassing when I go to a prosthodontist and he and his associates charge me $8,000 for an implant if I didn't have the credit to cover it (and miss out on at least 4000 Qantas points in the process).
Regards,
Renato

But you would have the card to cover it, unless you're going to cancel every card?

The only changes CCR will most likely make to credit card applications is if you have been actually lying about how much credit you currently have open, and now institutions will actually have that available to them.

In regards to the 4 cards and there uses, judging by the posts, everyone has their different strategy. I churn all cards, with mostly 2 open at a time (and 3 in rare occasions where I'm waiting on points to post before cancellation). Our DD's go through a staple card of my wifes she doesn't want to let go, it gives us a small point earn and we could do better, but I'm not losing sleep over it as we really don't have enough DD to make any great difference.

If we had a business or I was paying for work expenses through my cards, I'd have a completely different strategy though.

 

[Renato1]

But you would have the card to cover it, unless you're going to cancel every card?

The only changes CCR will most likely make to credit card applications is if you have been actually lying about how much credit you currently have open, and now institutions will actually have that available to them.

In regards to the 4 cards and there uses, judging by the posts, everyone has their different strategy. I churn all cards, with mostly 2 open at a time (and 3 in rare occasions where I'm waiting on points to post before cancellation). Our DD's go through a staple card of my wifes she doesn't want to let go, it gives us a small point earn and we could do better, but I'm not losing sleep over it as we really don't have enough DD to make any great difference.

If we had a business or I was paying for work expenses through my cards, I'd have a completely different strategy though.

Thanks - but what's a DD please?

You are right in part - I would have the new card with the greater credit limit to cover big bills, but only while i hold it. If I wanted to churn, then I'd have to cancel that card - and hopefully that cancellaton would show up quickly at the credit score organisations - and then I could apply for a new card with the bonus points. In that in-between period, I'd have to rely on the other cards with the paltry credit limits.

Also, I can't really get rid of the Jetstar Mastercard as I got it on a special offer of no annual fee ever. The likelihood of getting that offer again is unknown.

I'm not sure how you get by on only two cards at a time. It would have to be tricky to get one with foreign exchange fee-free transactions and when you want to travel overseas. It would drive me batty trying to arrange that.
Regards,
Renato

 

[mviy]

DD = Direct Debit.

Having to change Direct Debits across is one of the hurdles to changing cards. It takes time and effort, but it's worth it for the benefits imo.

 

[rock86]

Thanks - but what's a DD please?

Direct Debit

You are right in part - I would have the new card with the greater credit limit to cover big bills, but only while i hold it. If I wanted to churn, then I'd have to cancel that card - and hopefully that cancellaton would show up quickly at the credit score organisations - and then I could apply for a new card with the bonus points. In that in-between period, I'd have to rely on the other cards with the paltry credit limits.

Also, I can't really get rid of the Jetstar Mastercard as I got it on a special offer of no annual fee ever. The likelihood of getting that offer again is unknown.

If you did have a large purchase during that short period, why couldn't you just split the payment between your other held cards.

I'm not sure how you get by on only two cards at a time. It would have to be tricky to get one with foreign exchange fee-free transactions and when you want to travel overseas. It would drive me batty trying to arrange that.
Regards,
Renato

But we're at a point in our life, that we don't do too much extended foreign travel at present and therefore foreign purchases are not that big of a deal. So if I've got an AMEX I'm happy to cop the 3% fee, as the point that I earn will equal 1.5c and I know I will get much much more value out of it then that, otherwise I will use my debit account (and forego points ) that is forex fee free.

 

[EestiTiger]

I think the general view is that few v many cards, churning cards, etc etc is probably going to be different depending on a variety of factors. You just have to do what works for you, after doing your research on here! I know my logic has changed a few times as I learnt more and more.

I am firmly in the camp of churning all my points earning cards including AMEX cards. I worked out how much I would earn retaining cards that had a higher earn v cutting them and qualifying for bonus points after exclusion periods. This is best option for myself.

Currently the only credit card I permanently hold is 28 degrees with the lowest limit they allow on it. I then churn cards so I usually have 3 in my pocket at the one time. It is a balancing act getting it right to close one before applying for new one. It is a pain to move all the DD's over from spend earning card, to another card to qualify with the minimum spend. It is worthwhile though, at least to me

 

[burmans]

In terms of what I "need" to have, an Amex and a non Amex at any one time. Sure I sometimes want to have more so I can maximise category bonuses and similar across cards. But if I thought that holding more than 2 cards was meaning I was losing out on signon bonuses I'd be cancelling quickly and indeed am currently going through just this exercise.

With CCR lenders will be able to see if you are telling the thuth about your limits elsewhere. and there is no question this "may" impact on their desire to lend you more, so in my view time to start actively trying to reduce overall limits. This is a combination of cancelling cards and reducing limits.

 

[mviy]

I have always been truthful and never had a CC application denied. But now if they know all the previous credit applications you won’t be able to declare more than they know about already.

My current combined credit limit is a large as it has ever been. I do go for the minimum limit offered on a card and try to not get too carried away with the combined limit though it is surprising how big a limit the banks are willing to provide.

 

[burmans]

My current combined credit limit is a large as it has ever been. I do go for the minimum limit offered on a card and try to not get too carried away with the combined limit though it is surprising how big a limit the banks are willing to provide.

You should consider the possibility that they are doing this to lock you into them and at the same time prevent you from getting substantial loans elsewhere. because that is indeed what they are doing. Won't work so well with CCR, they cant see your outstanding balance, only your limit!.

 

[get me outta here]

I have just applied for and been granted a Westpac and despite nominating credit of $6K, they approved me for a 10K limit. I can lower the limit once I get the card activated, but does that lower limit go on my credit file, otherwise there's not much point.

BTW, I once some time ago ticked the wrong box and was dismayed to see that my credit limit had been set at 50K. No amount of contacting the bank and Equifax could change it.

 

[ozjuice]

Would I be correct that the 28 Degree card offers no sign up bonus or indeed rewards points? So purely used to save international fees?

 

[mviy]

Would I be correct that the 28 Degree card offers no sign up bonus or indeed rewards points? So purely used to save international fees?

Correct

 

[rock86]

Would I be correct that the 28 Degree card offers no sign up bonus or indeed rewards points? So purely used to save international fees?

Pretty sure that is correct.

 

[Dr Ralph]

Would I be correct that the 28 Degree card offers no sign up bonus or indeed rewards points? So purely used to save international fees?

Yep. And there's equally as good ways as saving those fees so I've never had this card.

 

[get me outta here]

28 D card with a v low limit is quite useful for small purchases such as on line where there may be a possibility of fraud. When I found a charge of about $150 a few days before I was due to go on a trip, they cancelled the card, sent me a new one before I left and gave me back the refunded the $150. Very efficient.

 

[TomVexille]

I have always been truthful and never had a CC application denied. But now if they know all the previous credit applications you won’t be able to declare more than they know about already.

But they already knew all of your previous applications, only now they know which cards you actually have.

 

[whole-lotta-moxie]

Just a heads up. Legislation is going to change as of 1st Jan 19 around credit card limits and the rules for closing/opening credit cards. The credit limits and how they will be calculated will be different so it will mean it will be harder to qualify for credit cards as of next year.

The other major change is the retention of customers with credit cards. In the past I have “threatened” to cancel my card unless they give me the next year fee free. As of next year as soon as u say “I want to cancel my card” the game is over they can’t offer any incentives for staying with that credit card

This has all been legislated by gov to assist the Australian public who are struggling with credit debt