Newbie Churn Advice for 2023

[TempestAurora]

Hi all

Long-time lurker/reader and now a first-time poster. Good to be participating in the discourse and sorry if this is asking a repeat of previous questions, I noticed some of the older threads are years old and things change.

I have a few (hopefully) specific questions noting I understand churn can be quite distinct depending on individual lifestyle/financial situations.

My questions are:

1. At what point do most of you apply for a new card when you're ready to cancel another? Do you wait until it is cancelled before a credit check is made so that line of credit appears on the check? Or do you do it a few weeks beforehand to make sure there is little downtime?
2. How many cards do you have on the go at one time? I've had my Velocity AMEX for 4 years and I'm a little attached, but everything I have read says AMEX ois a prime churning candidate even with the 18 month period between cards. I usually keep this as a card I keep ongoing and then attempt to churn a second card. Trying to convince myself out of this
3. Do you centralise your subscription/ongoing payments to a third party company like sniip, etc. to alleviate admin on having to switch payments over? If so what do you recommend?
4. How many months/years before going into a mortgage would you recommend to pause card churning (or is this irrelevant now?)

For context i'm on 125k a year before tax, if this hekps answer any of the above.

 

[Dr Ralph]

1. At what point do most of you apply for a new card when you're ready to cancel another? Do you wait until it is cancelled before a credit check is made so that line of credit appears on the check? Or do you do it a few weeks beforehand to make sure there is little downtime?

Cancel card. Get the email notification that this has occured. Then apply for the next card.

2. How many cards do you have on the go at one time? I've had my Velocity AMEX for 4 years and I'm a little attached, but everything I have read says AMEX ois a prime churning candidate even with the 18 month period between cards. I usually keep this as a card I keep ongoing and then attempt to churn a second card. Trying to convince myself out of this

The number of cards is irrelevant. What matters is the total credit limit.

3. Do you centralise your subscription/ongoing payments to a third party company like sniip, etc. to alleviate admin on having to switch payments over? If so what do you recommend?

I always pay bills manually. Never use auto payments.

4. How many months/years before going into a mortgage would you recommend to pause card churning (or is this irrelevant now?)

There is no way to answer this. It will vary between lenders and connect to your income/debt levels. If it was me, I wouldn't stop churning and instead would tell the prospective lender why there are so many applications over the past few years.

 

[_TheTraveller_]

1. Depending on your comfortability on how soon you want to apply. I would say give it a few weeks after you cancel before applying again. Also important that if you get knocked back, give it 2-3 months before you apply again. You cancel once the points hit your account unless you plan to keep the card longer.


2. No more than 3 for me besides my daily drivers (Amex Plat). Although I do plan to transition away.

3. I DD from credit cards I currently hold.

4. I started consolidating 12-6 months before contacting banks. Obviously if you have 2 people on the loan then it's less of a concern but this would also apply to refinancing. Charge cards also seemed to have less of an impact on home loans than normal credit cards according to the banker I was talking to.

 

[TempestAurora]

Cancel card. Get the email notification that this has occured. Then apply for the next card.

The number of cards is irrelevant. What matters is the total credit limit.


I always pay bills manually. Never use auto payments.



There is no way to answer this. It will vary between lenders and connect to your income/debt levels. If it was me, I wouldn't stop churning and instead would tell the prospective lender why there are so many applications over the past few years.

Thanks so much, mate!

 

[Kartz]

I just started churning too late last year.

1 & 2. With a similar income as yours, my approach is to keep the total credit limit of about $20-25k - which mostly means two cards at one time. This provide a transition and minimise downtime.

3. I switch manually and at the current rate every 4-5 months. Will explore the third party option as mentioned.

4. Keen to hear from others.