Welcome to credit card churning. What is credit card churning? It is the process of signing up for credit cards in order to take advantage of the bonus offers credit card companies provide in the initial intro period. On average a card holder would need to spend $3,000-$4,000 within the first 90-120 days of owning the card. Is this legal? Absolutely. It is 100% legal-and yes-it is the easiest way to earn free flights and receive cold hard cash for doing almost nothing. I especially love it because its the one way the individual gets to screw over large corporations that take advantage of consumers everyday in America.
But wouldn’t opening up a bunch of credit cards while spending thousands of dollars in three months be inherently risky? Of course. So that’s why we have a work around.
Step 1: Get approved for a credit card. Our first one was the Chase Ink card. They offered a $500 bonus after spending $3,000 in the first 90 days. Obviously Chase hopes we will open the card, create a large balance, and then end up paying interest on the balance for the rest of eternity. We don’t want that.
Step 2: Have someone that you trust like a friend, significant other, or family member request the total amount of $3,000 from you via their PayPal account. Then simply login to your PayPal and satisfy their request of $3,000 with your new card.
Step 3: Once the funds have settled from the transaction. Have your friend, significant other, or family member return the money to you that you charged on your card. They can write you a check, cash, or simply just Venmo you the money later.
Step 4: Use the money that circled back to you to pay the $3,000 credit card bill in full. Than you will have qualified for the $500 bonus. Now, please realize that payment services like PayPal do charge a 2.9% processing fee. So the full amount that you would actually earn would be $3,000-2.9%=$87. So the bonus of $500 minus the $87 processing fee will net someone $413.
Step 5: Don’t use the card ever again. Stay organized. Length of credit is a factor in your score. So we recommend at least holding the card for one year up until the credit card company wants to assess any membership dues.
BONUS HINT: If you own a business than you can apply for the same level of card with each company and repeat the process twice as often for more rewards.
CREDIT SCORE FACTOR: When we began churning I had a credit score above 750. One year later I still have a score above 750 but my score has dropped 9 points. So when done properly that aren’t negative effects. Credit card companies know that churning happens. The percentage of the population that end up getting stuck with large balances when they take their eye off the ball keeps credit card companies in the bonus offer game. We recommend our process to get the rewards without the risk.