I Didn't Mean to Churn, Yet it Happened

atd1970 · ‎08-16-2015

I have to admit, I love "sign-up bonuses", but for a few banks I am reaching maximized exposure.

Chase seems cool. The bank continues to open new accounts for co-branded products. I think the key is with Chase is that all my auto bill pay (Cable, Phone, Utilities, etc.) go through my Sapphire. Plus, I paid the Annual Fees at least once. Still worth it though. I have gotten $5,000 worth of flights and rooms versus $350 in annual fees.

Barclay is a strange bird. My Ring is now $20,000 and Frontier is $17,500. The Bank told me I have reached the internal limit and new products will not be approved. Should I close an account and apply for another? I got high credit lines by combining products.

Anonymous · ‎08-16-2015

You might be at their internal max, or what they are willing to lend to you. It is based on prior performance, income, and your overall report.

Anonymous · ‎08-16-2015

Why? What are you trying to accomplish?

kdm31091 · ‎08-16-2015

It's not really a matter of Chase being "cool", as sooner or later, you will hit a wall with them and could even face CLD if your exposure becomes too much.

No bank is going to give someone infinite credit. The limit varies based on your file, income, etc but the bottom line is every dollar they give you in credit is some sort of potential risk for them. I think you need to just dial back your expectations. Barclays in particular is a conservative bank. They do not like a ton of new accounts. They do not like a ton of inquiries. And like most banks, they want to see a lot of your spend focused on their cards. Without these, you aren't likely to get anything else with them. You can close an old account and maybe get a new one, yes, but you are indeed churning whether you meant to or not. Keep in mind every account stays with you on your report for 10 years, open or closed, so doing it repeatedly can haunt you on manual review. Good luck.

Anonymous · ‎08-16-2015

And these days Chase is starting to make Barclays look like Capital One in comparison (not that I have a problem with that.)

Chase has always been a somewhat conservative lender, that's growing with their 5-card limit, not just of theirs, but 5 cards from ANY lender. The only OTHER card I really want from them is the Sapphire Preferred. That and a few AMEX would complete my card acquisitiions indefinitely.

Anonymous · ‎08-16-2015

I still get instant approvals even after repeated churn.

kdm31091 · ‎08-16-2015

@Anonymous wrote:
And these days Chase is starting to make Barclays look like Capital One in comparison (not that I have a problem with that.)

Chase has always been a somewhat conservative lender, that's growing with their 5-card limit, not just of theirs, but 5 cards from ANY lender. The only OTHER card I really want from them is the Sapphire Preferred. That and a few AMEX would complete my card acquisitiions indefinitely.

Right, the new policy from Chase is pretty darn strict but you can't really blame them for instituting it. They are losing too much money on people collecting the bonus and then closing the card.

Anonymous · ‎08-16-2015

Churning is not allowed to be discussed on this board. If you don't have any need for the card and just looking for bonuses, this isn't the best place for such a discussion. Churning is not all that as companies are catching on. You are likely threading dangerously closing and opening accounts just for bonuses.

Anonymous · ‎08-16-2015

Churning was a lot more lucrative before the recent tightening of terms.

longtimelurker · ‎08-16-2015

@Anonymous wrote:
Churning is not allowed to be discussed on this board. If you don't have any need for the card and just looking for bonuses, this isn't the best place for such a discussion. Churning is not all that as companies are catching on. You are likely threading dangerously closing and opening accounts just for bonuses.

I haven't heard that before! What is the real difference between say, the hundreds of posts of "When will Freedom offer $200 again?" and churning, in both cases the bonus is obviously a huge part of the reason for getting the card. Or going for a card merely because of the high starting limit?