Credit card churning is the practice of repeatedly opening and closing credit cards to earn cash, rewards points, or miles. It involves applying for a credit card, getting approved, meeting a minimum spend within a set amount of time, earning a large welcome bonus, and canceling the card before the next annual fee is due. The process is then repeated again and again, hence the term churning.

While credit card churning can be lucrative, it can also be risky and requires a lot of time, dedication, and organization. It can also have a negative effect on your credit scores if youre not careful. The risks associated with credit card churning include:

• Damage to credit scores: The things you’ll have to do to get the best rewards, such as opening a lot of cards and spending on them regularly, can have a negative effect on your credit scores if youre not careful.

• Increased spending: You could spend more money on annual fees, interest, and additional purchases than you receive in rewards.

• Debt accumulation: The potential to build up debt you cant pay down.

Credit card churning is not illegal, but it is controversial and frowned upon by card issuers. Many credit card issuers have updated the terms and conditions for their credit cards and rewards programs to stop it, or at least make it harder and less lucrative. It is important to note that credit card churning is not right for everyone, and there are serious pitfalls that churners can fall into if they’re not careful.