JJonahJ

I have over half a dozen cancelled MBNA cards, of different variations. They dropped off my online account automatically. It's only after the move to TD systems that my cancelled cards are living on, to infinity and beyond!

JJonahJ

Well, I was sitting at the back of the Churning 101 class, and thought I heard that it was best to actually use and pay off the balance on CCs, so that after approximately 6 cycles, the card goes from R0 to R1 (good) status...which looks better in your credit profile.

But, there are a lot of lessons in that class that don't seem to make sense or follow the churning realities that I've seen.

Cerenity

I've seen some cards transition to R1 after only 1-2 months.

I'm probably in the minority, but I'm not a huge fan of aggressive churn. I can only imagine it draws attention to the behavior and will lead to increased likelihood of companies reviewing their churn friendly policies, and a reduction of long term sustainability

pokee

You're definitely in the minority around HERE, but not in the minority out THERE! My hubby and almost all of my friends, for example, want nothing to do with it. But then they cannot believe it when I fly everywhere for free - and stay at hotels for free.

Personally, I don't see myself as aggressive - but I suppose that is a matter of opinion (the fact that I hold 9 credit cards draws gasps and gaping mouths from those who find out, despite the fact that they all get paid off every month). I only apply for about 2-3 a year, and upgrade/downgrade my 3 major bank cards once a year. So is that 2-3 credit hits a year taking their toll? Maybe. But I think someone reviewing my file may take more of an interest in the fact that I have so many credit cards open at once (I only actually use 3-4 of them regularly - the others are just sitting there in their churn round).

I think the popularity of churning will increase over time, and then CC companies with either a) reduce/get rid of the sign-up bonuses; b) only make one sign-up bonus per lifetime available; c) no longer offer referrals or cash back incentives for sign-ups. But who knows?!

Cerenity

just to clarify, i do apply for cards every 3 months or so, and hold 8-10 active cards usually. i generally hold my cards for the entire year, cancel only when the fees are coming up, and re-apply after 6+ months, yada yada. It makes me look crazy to friends/family but versus some folks on here, it seems pretty tame.

what i would consider to be pretty aggressive churn are things like
- applying for the same card every 3-6 months because the bank allows you to hold multiple identical cards
- cancelling the card within 6 months or less of opening
- re-applying for the same card within 3 months


again, nothing against those that do it more aggressively, as its within their rights to do so. I just thought I'd point out that sometimes a teensy bit slower pace may benefit the entire community in the long run.

pokee

Our styles sound very similar! And I do agree to take it more slow - not just for the sake of the community, but for the sake of your own credit rating!

zer0k1

Where can you see its status?

Cerenity

on your full credit report that lists all the cards, their limits, and status

for example on Equifax (i have the unlimited plan due to the HD security breach last year), after I opened a new Chase Marriott in February, I received an alert from Equifax in mid March that a new account was opened.

Among other info, it included these 2 lines (the same info can be seen in the detailed credit report with all your trades & accounts listed)
Months Reviewed:01
Status:Too new to rate

Exactly one month later in mid April, I got another alert saying the Chase Marriott account had an account change. The same info now said this:
Months Reviewed:02
Status:Pays account as agreed

I believe the too new to rate is basically R0 and pays account as agreed is R1

zer0k1

Huh.. All mine show "Pays account as agreed" after the very first month reported.

BennyTalk

For those of you that are applying this card every 3-6 months,
When do you cancel your (previous) cards then?

Or do you leave it until each respective's card 12 months is up?

pokee

I think most people (like me) cancel just prior to the 12 month mark when the annual fee is due to be charged...and then reapply in 6-12 months...

crimsona

I live on the West Coast, so apply when I need a companion fare... works out to about 1 a year

BennyTalk

Thanks. I think that's pretty much the strategy for Amex cards.
But I'm curious about the more 'aggressive' churners on here that's applying every 3-6 months.

For example:
2015 Jan: Apply for card A
2015 Apr: Apply for card B
2015 Jul: Apply for card C
2015 Oct: Apply for card D
2015 Dec: --> Cancel card A? or earlier?
2016 Jan: Apply for card E
2016 Mar: --> Cancel card B?

worldtraveller73

Current data point: applied through Great Canandian Rebates. I received the usual "unable to instantly approve" message and advised to wait the 10 to 15 business days. No less than 90 minutes later, I received the approved email message from MBNA. The GCR posted within 48 hours. . .

First time using this card so will be interesting to see if it's valuable!

pokee

Do companion fares work for flights from a US origin (like BLI or SEA) to Hawaii? I heard somewhere they didn't and I cannot find any info stating that...the credit card T&C do appear to include Hawaii. Maybe what I recall hearing is that you cannot fly from Canada to Hawaii on a companion fare?

And does anyone know if there's blackout dates for companion fares or deadlines? I'd be looking to book one for March 2016, but probably won't be ready to book until a few weeks before the flight...