Getting new CC for reward, then cancelling?

[Anonymous]

Is there any risk to your credit by taking advantage of, for example CSP 40,000 point reward then canelling after the first year?  What I mean is, get a new CC for the promotional offer, but cancel after the first year to avoid the AF.

[TeamPunishment]

Yes you take a hit on your Utility. Sign up for CSP, get bonus, wait a few months. Ask to downgrad to CS

[flowfaster]

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@Anonymous wrote:

Is there any risk to your credit by taking advantage of, for example CSP 40,000 point reward then canelling after the first year?  What I mean is, get a new CC for the promotional offer, but cancel after the first year to avoid the AF.

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No, there is nothing wrong with that.  You just have to learn the game and pace yourself.  Most banks are not loyal at all.  They reward only new customers and treat long time customers as mules to pay for the new ones.  You can take advantage of this if you know how to play the game.  What you want to do is called churning cards.  There are many complex factors that go into your ability to churn cards.  You can easily destroy your credit also. 

Learn to play the game and you will profit.  Although you may want to look at different forums for the answers to the questions you should be seeking. 

Heads up there is now a 55K bonus CSP card offer.  The AF is higher but since you are going to cancel anyway it doesn't matter.

[Anonymous]

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@TeamPunishment wrote:

Yes you take a hit on your Utility. Sign up for CSP, get bonus, wait a few months. Ask to downgrad to CS

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Well, only if you are showing balances, then your utilization is potentially impacted, but those are easy to adjust.  

Doing it after one year, occassionally, is OK.    Some issuers look out for bonus chasers and may eventually blacklist.   This is more when you use the card ONLY to get the sign up bonus and then either SD it (if no AF) or cancel (if AF).  Do this a few times with the same issuer and you might come to their attention.

To be safe, I would do as you said, cancel or downgrade when the AF is due, and not after a few months, although again doing it just once is probably fine.

[Anonymous]

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@Anonymous wrote:

Is there any risk to your credit by taking advantage of, for example CSP 40,000 point reward then canelling after the first year?  What I mean is, get a new CC for the promotional offer, but cancel after the first year to avoid the AF.

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There are inquiry, new tradeline, AAoA, and utilization issues with churning CCs, that may affect your score.

Beyond that, there is a chance that specific CC companies will get tired of you, or that other lenders will not like what they see during a manual review.

[flowfaster]

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@flowfaster wrote:

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@Anonymous wrote:

Is there any risk to your credit by taking advantage of, for example CSP 40,000 point reward then canelling after the first year?  What I mean is, get a new CC for the promotional offer, but cancel after the first year to avoid the AF.

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Heads up there is now a 55K bonus CSP card offer.  The AF is higher but since you are going to cancel anyway it doesn't matter.

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Not to quote myself but I have thought of a better plan after I posted that.  This maybe an idea for you.  Go for the 40k version now, then in a year from now downgrade or cancel it.  Then you can apply for the new 55K CSP because it's considered a "new product".  That way you will retain the ability to transfer your UR points to travel partners.  You will also have around 100k UR points in one year just for completing the minimum spend.  And on top of that you will pay no AF for two years.  I would lay low from Chase after that.

[Anonymous]

Is the 50K CSP offer live still?

[DigitalArk]

I am wondering about it too...

[enharu]

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@flowfaster wrote:

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@flowfaster wrote:

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@Anonymous wrote:

Is there any risk to your credit by taking advantage of, for example CSP 40,000 point reward then canelling after the first year?  What I mean is, get a new CC for the promotional offer, but cancel after the first year to avoid the AF.

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Heads up there is now a 55K bonus CSP card offer.  The AF is higher but since you are going to cancel anyway it doesn't matter.

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Not to quote myself but I have thought of a better plan after I posted that.  This maybe an idea for you.  Go for the 40k version now, then in a year from now downgrade or cancel it.  Then you can apply for the new 55K CSP because it's considered a "new product".  That way you will retain the ability to transfer your UR points to travel partners.  You will also have around 100k UR points in one year just for completing the minimum spend.  And on top of that you will pay no AF for two years.  I would lay low from Chase after that.

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From what others are saying on other forums, you wouldn't qualify for the sign-up bonus if you have had the product (opened or closed) within the past 12 months. If you are flagged as a sign-up bonus abuser / churner, then the waiting period will be longer than 12 months, for an unspecified amount of time.