Churning 101 for the galactically ignorant???
 

ok, you guys are so far beyond me in your knowledge, it's scary. In all the searching on churning/app o rama i've done on FT, all the threads require a basic understanding of the process, which i don't have. How about Churing 101? where is the thread for the churners-to-be who only know that there is a process called CC churning, and that it is potentially helpful?
I hope this is the right place for this question?! If there is a newbie lounge for churning, it has eluded me. buckets of thanks, y'all!

First, some vocabulary. While often used interchangeably, churning and app-o-rama are distinct:

Churning refers to applying for a credit card, earning the new account bonus, cancelling the card, and reapplying for the same card to earn another new account bonus. Not all issuers will permit this, and the time you must wait to cancel, or to reapply, varies by issuer and sometimes by specific card.

App-O-Rama (AOR) refers to submitting simultaneous applications for several credit cards, and earning the new account bonus on each. The reason for simultaneous application is to reduce the chance that an issuer will see that you have recently applied for credit elsewhere, or to include more than one card from the same issuer.

Just read/scan this forum and mile buzz for a week or so and you'll get it.

But the gist is look at the special offer sticky thread in milebuzz and make a list of the offers that match your wants and desires, read the first couple posts (especially the first post in many threads) and the last page or two of the threads that interest you. Don't hit any one bank too hard.

Rinse and repeat 30 to 60 to 90 to 180 days later depending on credit strength, ability to meet spend (or manufacture it, there is a forum for that), and risk tolerances.

Some of the blogs have primers also, but its just a longer version of that. Airlines and currencies that transfer to airline points generally have high dollar values when looking at bonuses. But we all have different needs/wants.

ok, thanks. so, i got the terms down. now where can i go to get the rest of the basics? is there newbie forum for this? i know I'm not supposed to trouble the experts with this. thank you.

You are asking in the right place. A common error is to accumulate a random list of assorted miles and points which do not work well together for a memorable trip. Miles and points have value, but they aren't cash. You need to accumulate the brands which are useful for your objectives.

1. Mention your travel objectives. Domestic or International? Travel alone, as a couple or with children? Economy class or a premium cabin? Where will your trips start (which city or airports)? What type of hotel do you want? How long will you stay?

2. Tell us what you already know.

3. Ask a few specific questions.

I would start with a credit forum to make sure you know your finances, your personal credit history, the impact this game has on your credit score, and whether you can play. Then, pull your credit reports, check for inaccuracies, scores, etc. Once you have determined that you can/ should play, then determine which programs are best for you given your goals. You can then determine what Credit cards can get you to your goals. You do this by reading the threads on the CCs/ FFPs you a considering. If you have questions, search is key as most of the basics have been answered numerous times like the life of a hard pull, Impact on credit score, what if I need a mortgage or other loan, how many cards can I get, how to put together an AOA, etc., etc. You will have more assistance when you a) appear to have read something and b) have your goals firmly in mind and put some effort into figuring out how you can achieve them.

It's harsh to find out that you will need to do more than post a question and apply for a credit card or two, but the reality is that failing to understand things up front results in less than optimal results like having miles in numerous programs, but not enough to redeem any for a flight, etc. and a whole host of other mistakes. It's very time consuming, but rewarding.

Good Luck!

Don't forget to read Rick's blog: http://www.frugaltravelguy.com/rookie-tips-and-faq

He has a section on the right called Blogroll for other useful links, as referenced by dcpilgrim

And always remember, churning is not for everyone!

churning is dead, most all of the cards have some kind of waiting period between bonuses, you have to search the individual card program to figure the suggested waiting time between applications, cancellations, and new applications in order to qualify for signup bonuses more than once.
App-o-ramas are foolish for the most part...only show off bloggers like FM will suggest signing up for a dozen cards, the only possible reason to get 2 cards at once was to save a hard pull on your credit report by the card company (two pulls in the same day would consolodate into one) and credit card companies look at how many pulls you have on your credit report. The people that do app-o-ramas usually consider which of the 3 credit agencies a particular bank card will use for a pull and apply for a spread of cards that don't use a single agency too many times. The problem is they are usually greedy hogs feeding at the milage trough and will eventually paint themselves into a corner. You can apply for 10 cards at once but that sends up red flags to banks that think people are trying to get a bunch of credit at once (which they could then default on) The card companies see how many cards you have in the next attempted app-o-rama and eventually you will be denied for too many inquires, too many cards, too much credit, average account life too short, or a multitude of other reasons...
I've found the best way is to go slow and steady, keep some no annual fee cards open forever, and apply for a couple of cards from different banks every 4 to 6 months, keeping them for a year or more if the benefits are worth the annual fee, and cancelling them as needed to make room for new cards from the same bank, if you are denied a card it is easier to be reconsidered and approved if you cancel another card from the same bank and use the credit you free up to be approved for the new card. There are many subtle methods to learn for each program, and if you go slow, you are more likely to stay under the radar and make less mistakes than a person doing app-o-ramas every 3 months. Your credit rating is more important than a bunch of points, don't screw it up just because a blogger told you you could get a million points easy.
I would say the most important thing besides protecting your credit is to know that you can be financially responsible, if you can't pay off your balances in full every month and use cards as tools to get miles, you can get into trouble quickly.
Like someone else said it is good to have a plan, so you don't wind up with a bunch of unrelated miles in different programs. Figure out which airline is best for your home city and start with them, read their progam info, look at their website and learn how to earn miles, be aware they have many partners that you can earn miles with. Know that the best point bonus offers are the least advertised ones ( FT is a great source for finding the best offers out there) sometimes the airline or card company will send targeted offers for high bonuses through US mail or e-mails, so get on their mailing lists. Figure out if any other credit card points transfer into your preferred airline program (example 50k United points are great for signing up for the chase credit card, and will get you a domestic round trip coach flight for 2, but if you get an American Express card with membership reward points and transfer them into United, you suddenly have enough for first class domestic or a pair of coach to Hawaii)
If you are able get business credit cards for additional bonuses, they are treated seperate from personal cards and don't effect your credit score in the same manner.
Business cards should be added slowly as well to build credibility, unless you have a active business that you can put a lot of expenses on the cards.
Once you get enough airmiles in a program, you may want to add a hotel program.
Once you have air and hotel, a chase card that earns ultimate reward points, a Amex that earns Membership Reward points, or a capital one venture card that earns travel points are good to have for other travel expenses like rental cars or other travel related costs that are not covered by air or hotel points, these are also good to have because you can transfer the points into your air or hotel program if you need a few more points to get an award.
So now you know, to focus on learning how credit works, focus on a few reward programs that will work for your origin or destination cities, research all you can directly from the reward sites, and from the associated threads here in FT....search and read, most things have been asked and answered a hundred times here. Take your time, a few months of reading and asking questions will help you get a handle on it.
See the big picture first, then focus on the details, remember slow and steady wins the race and will earn you more points than you will have use for. There is no need to treat this like a slickdeal and sign up for a dozen cards just because some blogger did it. Most of the ones that are doing app-o-ramas have been playing this game for a long time and have worked their way up slowly until their credit can handle the load...if they just started and are doing app-o-ramas they will learn the hard way.

I agree with the posts above, that say you have to see whether you can/should play the game. Having a solid credit history and having built up a good habit of spending/saving, is most important. The reality is that behind this free stuff is a system that has led many people to pretty bad places in life. Developing a solid history and having good financial senses will allow you to take advantage of these offers.

I'd like to say something useful, but I think wise2u really hit the nails on the head.

One thing that really helps is a supportive spouse with a great credit rating. I'm very lucky, my wife stays completely out of my way and lives in another country so she doesn't even care that much about her USA credit file.

You have to assess how much spending you can do or manufacture and obviously to make sure you will absolutely positively not get yourself into financial distress.

And be sensible about the points you accrue. I started out getting points for my wife to travel to the USA so we could see each other. Then I went for points for overseas trips, because my wife's family is in Europe. We took a trip to Paris, so I slipped a couple hotel cards in there. Now that I work in Bermuda, I'm working on points for Southwest and Airtran because after the merger is complete they will have flights to Bermuda that are reasonably priced in award points. I don't sign up for cards just because they're there.

This has become my second major hobby (along with bridge) and it's a pretty lucrative one. It felt pretty good when I told my wife "You're never flying coach to Europe again."

One final note though, don't assume that just because you have points out the wazoo that you can actually use them. It sometimes takes careful planning. I probably spent 20-30 hours last fall just finding the best ticket for my wife's trip to see her family this coming summer. And I may change it yet again, if I can "upgrade" her from first class on United to first class on Lufthansa. But obviously this stuff wouldn't be remotely possible without all the card churning.

BTW, I never do "app-o-ramas." I would say that I apply for 6-8 cards a year for each of us, at 4-8 week intervals. If someone could tell me to a moral certainty that the bonus gravy train would go on indefinitely, I'd probably slow down. But if one day the bonuses stop, I would be kicking myself big-time if I hadn't maximized them now.

I agree - nobody can be sure when the bonuses for credit cards will stop. I have 20 credit cards from the last 2 years. Its crazy, and I am shocked when a bank approves me in spite of this track record. For the record I have a 750 score, minimal balances and always pay on time.

So I have decided to let the market decide. How many is too many? Let Amex, Chase et al tell me that, its not for me to guess. So I am happily applying away, in a way I could never imagine, a short 3 years back.

you guys are great. thanks for all the advice. App-o-Rama is not an option for me- i just don't have the income/expenses to pull it off. I can only charge about $600-800 per month, so, slow and steady is going to have to be my game. I started with the Cap1 Venture because of the 2X perk, but that seems weak now, compared to the bonuses of other cards. perhaps I should get one card at a time, earn the bonus, and then cancel each one after I've held it for the minimum time period. with the bonunes alone I should be able to accumulate 300,000 miles annually. who knows, by summer 2014 maybe me and the wife can take a trip!?!

Generally not. Keep the card until the renewal annual fee is due, then inquire about a "retention" offer before deciding to cancel. Review these threads:

http://www.flyertalk.com/forum/credi...c-account.html

http://www.flyertalk.com/forum/credi...on-offers.html

http://www.flyertalk.com/forum/credi...all-cards.html

http://www.flyertalk.com/forum/ameri...n-bonuses.html (American Express)

http://www.flyertalk.com/forum/chase...all-cards.html

That's a sensible start, except for prematurely cancelling. I would grab the USAir card with no fee for the first year on the same day as whatever other card you decide on, since it has no minimum spend and gets you free future AA miles.