credit card rewards

Anonymous · ‎03-19-2015

Hello everyone,

I am a 24 year old with decent credit. I make about 40k/year .I have never had any negitives on my credit and have a solid credit profile (for my age). I owe nothing on any of my cards. I currently have 61,800 in available credit across all 10 cards.

I have had personal loans out in the past, all of which are paid and have been paid off for awhile.

I am considering getting into card churning and was wanting suggestions on that. Best practices? Suggestions? will my credit limit have a negitive affect when trying to apply for multiple cards? Will they lower my current limits with several new apps approved?

Thank you for your time!

longtimelurker · ‎03-19-2015

@Anonymous wrote:
Hello everyone,

I am a 24 year old with decent credit. I make about 40k/year .I have never had any negitives on my credit and have a solid credit profile (for my age). I owe nothing on any of my cards. I currently have 61,800 in available credit across all 10 cards.

I have had personal loans out in the past, all of which are paid and have been paid off for awhile.

I am considering getting into card churning and was wanting suggestions on that. Best practices? Suggestions? will my credit limit have a negitive affect when trying to apply for multiple cards? Will they lower my current limits with several new apps approved?

Thank you for your time!

Just be very aware of each issuers limits on applicatons. These change, sometimes greatly, from time to time. Flyertalk can be a good source. And remember that the common problem with app sprees etc are low CLs and high APRs. If you are just going for bonuses, neither of these matter (so long as the CL isn't too small that it's hard to make minimum spend)

But decide what bonuses you want (miles/points in which programs etc), read up on the rules, and then see.

Aggressive churning works best with thick files, with your age not sure how thick your file will be.

longtimelurker · ‎03-19-2015

And also make sure that you can meet minimum spend in time. This might involve careful timing, so you don't have two or more high-requirement cards active at once.

Anonymous · ‎03-19-2015

Thank you. I don't really mind the high Apr with low limits as my current cards have decent limits (so long as they don't modify the terms on my other cards).

Although my file is good it can't be too thick (mainly because of my age as I think I've managed my credit well). What would you consider a thick file?

yfan · ‎03-19-2015

One thing about bonus churning is that you have to come up with the spend to meet the bonus requirements. You said you make $40K a year, which I assume is around a $2800 a month after taxes and deductions (like, do you have a 401K? Pay for health insurance?) if that much. So what's your monthly credit card spend? Are there big expenses you anticipate that you would be able to use that spend towards AND still pay in full on all your cards each month? This consideration should at least inform what you choose to churn and how much and how often.

Anonymous · ‎03-19-2015

Typical monthly spend is 1250-1600, depending. I put back money to pay car insurance in full every 6 months, and I put all food , gas, bills and other stuff on my cards and pay it off Each month.

Anonymous · ‎03-19-2015

I kind of fell into the house I'm in now due to family so I don't have a house payment, however will eventually be buying another house down the road (couple years).