I Made $4,200 From Credit Card Sign-Up Bonuses in 2025 - Here's My Exact Strategy

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FAQs - Credit Card Churning Strategy 2025

. Is credit card churning legal?

Yes, credit card churning is completely legal. Banks offer sign-up bonuses to attract new customers, and there's no law against applying for multiple cards to earn these bonuses. However, you must follow each card's terms and conditions, meet spending requirements honestly, and avoid violating anti-abuse policies like manufacturing fake spending. As long as you use cards for legitimate purchases and pay balances on time, churning is a legal financial strategy.

. Will credit card churning hurt my credit score?

Credit card churning can temporarily lower your score by 5-10 points per application due to hard inquiries, but your score recovers within 2-3 months if you manage cards responsibly. The key is spacing applications 60-90 days apart, keeping utilization under 1% by paying balances before statements close, and never missing payments. Long-term, churning can actually improve your score by increasing your total available credit and demonstrating responsible credit management across multiple accounts.

. How much money can you make from credit card churning?

Most people earn $3,000-$5,000 per year from credit card churning by opening 5-8 cards annually. High earners with business cards and high organic spending can earn $8,000-$12,000 per year. The amount depends on your credit score (need 700+ for premium bonuses), monthly spending capacity, and ability to meet minimum spending requirements without manufacturing fake purchases. Each premium card typically offers $500-$1,250 in bonus value.

. What is the 5/24 rule for credit cards?

Chase's 5/24 rule automatically denies credit card applications if you've opened 5 or more credit cards (from any bank) in the past 24 months. This rule applies to all personal Chase cards including Sapphire, Freedom, and United co-branded cards. Business cards from Chase also follow 5/24. To maximize Chase bonuses, apply for Chase cards first before hitting 5/24, then move to American Express, Citi, and other issuers that don't have this restriction.

. What are the best credit cards for churning in 2025?

The best cards for churning in 2025 are Chase Sapphire Preferred (75,000 points = $937 travel value), American Express Gold (90,000 points = $900), Chase Ink Business Preferred (100,000 points = $1,000+), Capital One Venture X (75,000 miles + $300 credit), and Citi Premier (80,000 points = $800). These cards offer high bonuses relative to spending requirements and annual fees. Focus on cards with bonuses over $500 and spending requirements you can meet naturally within 3-6 months.

. How do I avoid paying interest while churning credit cards?

Avoid interest by paying your full balance before the statement closing date each month, not just the payment due date. Set up automatic payments for the full statement balance, and use calendar reminders for statement close dates. Never carry a balance month-to-month—interest rates of 18-24% APR will instantly erase bonus value. For example, carrying a $4,000 balance for 3 months at 22% APR costs $220 in interest, wiping out most sign-up bonuses. Always pay in full to keep churning profitable.

. What is manufactured spending in credit card churning?

Manufactured spending (MS) is buying cash equivalents like gift cards, money orders, or prepaid cards to artificially hit credit card spending requirements, then converting them back to cash. While not illegal, MS violates most card terms and can result in bonus clawbacks, account closures, and blacklisting from future card approvals. Banks use sophisticated fraud detection to identify MS patterns. Instead, use organic spending on rent, groceries, insurance, business expenses, and everyday purchases to meet requirements safely.

. When should I cancel a credit card after churning?

Cancel credit cards 1-2 weeks before the second annual fee posts, typically 11-12 months after account opening. Check your account anniversary date and set a calendar reminder for 350 days post-approval. Before canceling, redeem all rewards points, and consider downgrading to a no-annual-fee version instead of canceling to preserve your credit history. For example, downgrade Chase Sapphire Preferred to Chase Freedom Unlimited to avoid the $95 annual fee while keeping the account open for credit score benefits.

. Can I churn the same credit card multiple times?

Most banks have restrictions on earning bonuses from the same card multiple times. Chase allows one bonus per card every 48 months. American Express has a 'once per lifetime' rule (though 'lifetime' is typically 7 years). Citi allows bonuses every 24 months for the same card family. To maximize earnings, target different cards from the same issuer (Chase Sapphire Preferred, then Chase Ink Business Preferred) rather than reapplying for the same card. Always read the bonus terms for specific waiting periods.

. Do I need a business to apply for business credit cards?

No, you don't need a registered LLC or formal business entity. Sole proprietorships, freelance work, and side hustles qualify for business credit cards. You can use your Social Security Number as the Tax ID and report your business income honestly (even if it's just $2,000-$5,000 per year from freelancing or side gigs). Business cards offer higher sign-up bonuses and don't count toward Chase's 5/24 rule, making them valuable for churners. Just ensure you have legitimate business activity to report on applications.