This Page Was Last Updated on January 25, 2024.
Credit card churning is a way for Canadians to maximize their rewards and take advantage of the best credit card offers. It involves signing up for multiple credit cards, taking advantage of the sign-up bonuses, and then cancelling the cards before the annual fee kicks in.
This strategy can be a great way to get the most out of your credit cards, but it's important to understand the risks and rewards associated with it. In this article, we'll explore the basics of credit card churning in Canada, including the benefits, drawbacks, and tips for getting started.
Banks offer generous welcome bonuses and rewards in order to attract new customers to their credit cards. Credit card churning takes advantage of these offers by signing up for multiple cards, using them for rewards, and then cancelling them before the annual fee is due. They then repeat this by applying for new cards and churning through different cards to take advantage of the best offers.
Credit card churning allows cardholders to earn points, miles, or cash back at a faster rate and potentially access more valuable rewards. While it can be a profitable hobby if done carefully, it's not without its risks.
Many credit cards offer a waiver of the first year's annual fee as part of their sign-up bonus. Keep track of when that first year is up so that you can cancel the card before then and avoid paying the annual fee.
Some banks, such as RBC, offer a pro-rated refund of the annual fee if you cancel your card.
Most welcome bonuses have a minimum spend requirement, such as spending $3,000 in three months. If it seems too high, consider waiting to apply until you have planned expenses that align with the minimum spend, and don’t spend more than you normally would just to meet the requirement.
It’s never a good idea to carry a balance on a credit card, especially when you are churning. The interest charged on any balance will quickly eat away at the value of your rewards.
Make sure to pay off your card in full each month to avoid interest charges.
$139.00
Household: $15,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aventura Point | = | $0.010 in Cash | = | $600 in Cash |
$0.013 in Travel Purchases | $750 in Travel Purchases | |||
$0.023 in Flights With Aventura Airline Rewards | $1,380 in Flights With Aventura Airline Rewards |
$139.00
Household: $100,000
Individual: $60,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aventura Point | = | $0.010 in Cash | = | $600 in Cash |
$0.013 in Travel Purchases | $750 in Travel Purchases | |||
$0.023 in Flights With Aventura Airline Rewards | $1,380 in Flights With Aventura Airline Rewards |
$499.00
Household: $200,000
Individual: $150,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aventura Point | = | $0.010 in Cash | = | $500 in Cash |
$0.013 in Travel Purchases | $625 in Travel Purchases | |||
$0.023 in Flights With Aventura Airline Rewards | $1,150 in Flights With Aventura Airline Rewards |
$0.00
Household: $15,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aventura Point | = | $0.010 in Cash | = | $0 in Cash |
$0.013 in Travel Purchases | $0 in Travel Purchases | |||
$0.023 in Flights With Aventura Airline Rewards | $0 in Flights With Aventura Airline Rewards |
$599.00
Household: $200,000
Individual: $150,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $525 in Gift Cards |
$0.017 in Economy Class Flights | $1,275 in Economy Class Flights | |||
$0.028 in Business Class Flights | $2,100 in Business Class Flights |
$599.00
Household: $200,000
Individual: $150,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $525 in Gift Cards |
$0.017 in Economy Class Flights | $1,275 in Economy Class Flights | |||
$0.028 in Business Class Flights | $2,100 in Business Class Flights |
$599.00
Household: $200,000
Individual: $150,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $560 in Gift Cards |
$0.017 in Economy Class Flights | $1,360 in Economy Class Flights | |||
$0.028 in Business Class Flights | $2,240 in Business Class Flights |
$139.00
Household: $100,000
Individual: $60,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $350 in Gift Cards |
$0.017 in Economy Class Flights | $850 in Economy Class Flights | |||
$0.028 in Business Class Flights | $1,400 in Business Class Flights |
$599.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $420 in Gift Cards |
$0.017 in Economy Class Flights | $1,020 in Economy Class Flights | |||
$0.028 in Business Class Flights | $1,680 in Business Class Flights |
$139.00
Household: $100,000
Individual: $60,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $350 in Gift Cards |
$0.017 in Economy Class Flights | $850 in Economy Class Flights | |||
$0.028 in Business Class Flights | $1,400 in Business Class Flights |
$120.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $210 in Gift Cards |
$0.017 in Economy Class Flights | $510 in Economy Class Flights | |||
$0.028 in Business Class Flights | $840 in Business Class Flights |
$89.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $140 in Gift Cards |
$0.017 in Economy Class Flights | $340 in Economy Class Flights | |||
$0.028 in Business Class Flights | $560 in Business Class Flights |
$0.00
Household: $15,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Aeroplan Point | = | $0.007 in Gift Cards | = | $70 in Gift Cards |
$0.017 in Economy Class Flights | $170 in Economy Class Flights | |||
$0.028 in Business Class Flights | $280 in Business Class Flights |
$0.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
95 Cash Miles | = | $10.00 in Purchases | = | $84 in Purchases |
1 Dream Miles | = | $0.11 in Flights | = | $88 in Flights |
$120.00
Household: $150,000
Individual: $80,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
95 Cash Miles | = | $10.00 in Purchases | = | $211 in Purchases |
1 Dream Miles | = | $0.11 in Flights | = | $220 in Flights |
$120.00
Household: $100,000
Individual: $60,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Avion Point | = | $0.007 in Gift Cards | = | $385 in Gift Cards |
$0.010 in Travel Purchases | $550 in Travel Purchases | |||
$0.023 in Fixed Rate Flights | $1,265 in Fixed Rate Flights |
$399.00
Household: $200,000
Individual: $200,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Avion Point | = | $0.007 in Gift Cards | = | $385 in Gift Cards |
$0.010 in Travel Purchases | $550 in Travel Purchases | |||
$0.023 in Fixed Rate Flights | $1,265 in Fixed Rate Flights |
$120.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Avion Point | = | $0.007 in Gift Cards | = | $245 in Gift Cards |
$0.010 in Travel Purchases | $350 in Travel Purchases | |||
$0.023 in Fixed Rate Flights | $805 in Fixed Rate Flights |
$48.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Avion Point | = | $0.007 in Gift Cards | = | $49 in Gift Cards |
$0.010 in Travel Purchases | $70 in Travel Purchases |
$119.00
Household: $150,000
Individual: $80,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 WestJet Dollars Point | = | $1.000 in Base Fare for WestJet Flights | = | $450 in Base Fare for WestJet Flights |
$39.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 WestJet Dollars Point | = | $1.000 in Base Fare for WestJet Flights | = | $100 in Base Fare for WestJet Flights |
$250.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 AMEX Point | = | $0.010 in Statement Credit | = | $600 in Statement Credit |
$0.020 in Fixed-Point Travel | $1,200 in Fixed-Point Travel |
$799.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 AMEX Point | = | $0.010 in Statement Credit | = | $700 in Statement Credit |
$0.020 in Fixed-Point Travel | $1,400 in Fixed-Point Travel |
$0.00
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 AMEX Point | = | $0.010 in Statement Credit | = | $100 in Statement Credit |
$0.020 in Fixed-Point Travel | $200 in Fixed-Point Travel |
$155.88
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 AMEX Point | = | $0.010 in Statement Credit | = | $150 in Statement Credit |
$0.020 in Fixed-Point Travel | $300 in Fixed-Point Travel |
$139.00
Household: $100,000
Individual: $60,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 TD Rewards Point | = | $0.003 in Statement Credit | = | $288 in Statement Credit |
$0.004 in Travel Purchases | $460 in Travel Purchases | |||
$0.005 in Expedia For TD Bookings | $575 in Expedia For TD Bookings |
$119.88
None
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Point | = | $1.000 in Statement Credit | = | $400 in Statement Credit |
$399.00
Individual: $12,000
Redemption Options | Redemption Value (First Year) | |||
---|---|---|---|---|
1 Scene+ Point | = | $0.010 in Redemptions | = | $600 in Redemptions |
The RBC Avion Visa Infinite credit card gives 35,000 Avion Points upon approval, worth $805 towards flight redemptions or $245 in gift cards. You'll only have to pay the $120 annual fee for the card.
The Scotiabank Passport Visa Infinite offers 25,000 Scene+ Points for spending $1,000 in the first three months. That's worth $250 in redemptions. After considering the $150 annual fee, you'll get $100 in value for spending $1,000. That's equivalent to a 10% return on your spending.
Meeting spending requirements is required in order to earn the welcome bonuses for most credit cards. However, if you're not someone who spends a lot of money with credit cards or you don't want to risk going into debt, there are still ways to meet these requirements without overspending.
One option is to use your credit card for everyday purchases such as groceries, gas, and utility bills. This way, you're able to earn points or cash back on your regular expenses without having to change your spending habits just to chase a welcome bonus. You can also consider timing larger purchases, such as buying furniture or electronics, around the time you open a new credit card to help meet the spending requirement.
Another option is to purchase gift cards for retailers that you normally shop at. You can fulfill the minimum spend requirement within the time requirement and then be able to use the gift card to shop at your leisure in the future.
Manufactured spending, which involves using methods to artificially increase your spending on credit cards, are not allowed and could result in account closure. Examples include paying yourself or friends and family, and then using the cash to pay off your credit card.
Alternatively, you can look for credit card sign-up bonuses that have lower spending requirements or even no spending requirements at all. These offers may not be as lucrative as ones with higher spending requirements, but they still provide a way to earn rewards without spending more than you can afford.
While credit card churning may seem like a quick and easy way to earn extra rewards, it's important to be aware of the potential dangers involved. Churning credit cards can have negative impacts on your credit score, as well as other consequences.
One major risk of credit card churning is the potential for damage to your credit score. Each time you apply for a new credit card, a hard inquiry is made on your credit report, which can lower your score by a few points. This may not seem like much, but if you're constantly churning cards and making multiple applications in a short period of time, it could significantly impact your overall score.
In addition to multiple hard credit checks, churning credit cards can also impact the average age of your credit accounts. This is because each time you open a new card, it begins a new account with a length of zero. A longer credit history is generally seen as more favorable, so constantly churning cards and opening new accounts can lower your overall score.
Managing multiple credit card accounts and keeping track of different due dates and minimum payments can also be challenging and can lead to missed or late payments. This can have a negative impact on your credit score and potentially result in additional fees or interest charges.
Some credit issuers have strict policies against frequent churners and may even ban them from applying for their cards in the future. This could limit your options when it comes to earning rewards and benefits from certain credit cards.
One term commonly used in the credit card churning community is "amexiled," which refers to being banned from applying for American Express credit cards due to excessive churning behavior. This can happen when someone has opened and closed multiple American Express accounts within a short period of time. Usually, you can only receive the welcome bonus for an American Express card once in your lifetime.
Being amexiled means losing any unused rewards or benefits associated with the banned accounts, as well as potentially being blacklisted from applying for other American Express products in the future.
If you have had the same credit card in the past, even if it was closed or canceled years ago, you may not be eligible for the welcome bonus when you apply again. This is another way that credit card issuers prevent churners from taking advantage of their welcome bonuses multiple times.
However, some banks may have a time limit before you can receive a welcome bonus again. For example, Scotiabank lets you receive a credit card welcome bonus again after 2 years of not being a Scotiabank cardholder.
Aeroplan limits a welcome bonus to once per Aeroplan card type, regardless of issuer. This means that if you signed up for the TD Aeroplan Visa Infinite Card, you won’t be able to also get the welcome bonus from the CIBC Aeroplan Visa Infinite Card, as it’s the same card type.
Since there are five Aeroplan card types, you can get five card welcome bonuses in a lifetime.
Card types that Aeroplan will only grant one welcome bonus for are:
Credit card churning in Canada is a strategy used by savvy consumers to maximize their credit card rewards. It involves signing up for multiple credit cards with attractive rewards programs, taking advantage of the sign-up bonuses, and then cancelling the cards before the annual fees kick in.
Credit card churning in Canada can be a great way to maximize your rewards and save money. By taking advantage of sign-up bonuses and other rewards programs, you can earn points, miles, and cashback that can be used for travel, shopping, and other rewards.
When credit card churning in Canada, it’s important to keep track of your spending and make sure you pay off your balance in full each month. You should also be aware of annual fees and other costs associated with each card, and make sure you cancel the cards before the fees kick in.
You should always pay off your balance in full each month and be aware of annual fees and other costs associated with each card. Your credit score can be negatively affected due to frequent credit inquiries and low account age. Some card issuers have also been known to ban customers who engage in excessive credit card churning.
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