Is it better to churn cards or stick to one long-term?

[vardan22]

Hi AFF community


I’m new to points and I’m trying to understand the best strategy.


Some people recommend:
apply for new cards often (churning) to collect bonuses
Others say:
stick to one main card and build points slowly

Questions:

• What strategy gives the best return in Australia?
• How often can someone safely apply for cards without damaging credit score too much?
• Any “must know” rules for beginners?

Would really appreciate tips from experienced members. Thanks in advance!

 

[burneracc]

My strategy is:

1 keeper / main card (amex)
1 backup card that I churn / rotate frequently for where amex isn't accepted

All spend goes through amex where possible, otherwise use a backup card.

I've hit 3 sign up bonuses + a couple amex referrals so far over the last 18 months and netted ~500k points doing this, plus another ~150k just from earning points from spending. Also try to look out for an offer like this before your first qantas card sign up - I was lucky enough to take advantage of this myself and it comes up every so often: https://www.ozbargain.com.au/node/895623

So far I've done the amex platinum (my keeper card) for 275k points + another 225k in referral bonuses so far, Citi (now called myCard) prestige for 125k qantas points + the qantas first time 20k bonus offer, and this month the NAB qantas signature card for 100k more qantas points.

To answer your credit score question - my score has actually gone UP significantly since starting this, but I've never missed a payment and have kept my keeper amex open for a long time which helps too. I personally am of the opinion that 1-2 sign ups per year is the sweet spot - I target cards with larger referral offers instead of doing crazy churning like 6-8 per year of the lower tier cards that have smaller sign up bonuses.

Any “must know” rules for beginners?

DO AMEX FIRST. You will not get approved for them in future if they smell a hint of churning from your credit report.