Churning between CIBC Aeroplan VISA and AMEX Aerogold (Canada)
Feb 16, 2011, 5:24 pm
#1
Original Poster
Join Date: Feb 2011
Posts: 26
Churning between CIBC Aeroplan VISA and AMEX Aerogold (Canada)
Can someone teach me the dos and donts for this kind of strategy?
Specifically, is this "allowed"? How often can you switch between 2 cards?
Also, when would you have to cancel to avoid paying fees?
I'm not saying I will do this but I'm curious how people do this and if it actually works.
Specifically, is this "allowed"? How often can you switch between 2 cards?
Also, when would you have to cancel to avoid paying fees?
I'm not saying I will do this but I'm curious how people do this and if it actually works.
Feb 16, 2011, 8:55 pm
#2
Join Date: Feb 2011
Location: YYZ
Programs: AC 25K only, he said through tears from the back of the aircraft...
Posts: 563
You must follow the rules of each card, and I don't know if Amex has any timeline requirements. I'm not aware of any for CIBC Aerogold.
"Is this allowed?" Of course. If the bank doesn.t want your business any more, they'll say so. But since they're getting $120 from you, plus Visa vendor percentage on every purchase, their cost for your 15k bonus (probably under $150) is nothing. *Your* cost, however, is something to consider, both in dollars and time. $120 buys 3000 Aeroplan points, or more if there's a sale, so obviously it's a good deal. But churning monthly is a huge cost and causes large activity on your credit report, which could impact other parts of your life.
"How often?" I would suggest, purely based on my comfort level, that annually is the cleanest and least-stressful timeframe. You can accelerate, but it's a nuisance to have a card suddenly not available if you regularly need its benefits - for example, car insurance when renting.
Aerogold has an annual fee. When you activate your card you will pay the fee, so you should cancel at 11 months or so to ensure you don't have to pay the next year's fee if you plan to replace the card.
Personally, I have replaced my Aerogold (just with another Aerogold, usually 2 months later) every 22 months or so. Not painful to the bank, not painful to me. Now that my work travel is dropping, I may look at changing cards faster.
"Is this allowed?" Of course. If the bank doesn.t want your business any more, they'll say so. But since they're getting $120 from you, plus Visa vendor percentage on every purchase, their cost for your 15k bonus (probably under $150) is nothing. *Your* cost, however, is something to consider, both in dollars and time. $120 buys 3000 Aeroplan points, or more if there's a sale, so obviously it's a good deal. But churning monthly is a huge cost and causes large activity on your credit report, which could impact other parts of your life.
"How often?" I would suggest, purely based on my comfort level, that annually is the cleanest and least-stressful timeframe. You can accelerate, but it's a nuisance to have a card suddenly not available if you regularly need its benefits - for example, car insurance when renting.
Aerogold has an annual fee. When you activate your card you will pay the fee, so you should cancel at 11 months or so to ensure you don't have to pay the next year's fee if you plan to replace the card.
Personally, I have replaced my Aerogold (just with another Aerogold, usually 2 months later) every 22 months or so. Not painful to the bank, not painful to me. Now that my work travel is dropping, I may look at changing cards faster.