AORing and Churning, OBE?
 

Wondering if and how recent changes to the policies for credit card bonuses and apparent tracking of credit card applications in real time affects the strategy of applying for multiple cards at the same time and also of applying for the same card multiple times in a relatively short period of time. In other words, is the recommendation for an App-O-Rama every 66 or 90 days now no longer the consensus? And has churning been overcome by events?

Reports on this thread http://www.flyertalk.com/forum/citi-...months-22.html on July 27 and August 3 indicate CC applications are now tracked in real time, which would indicate that applying for a bunch of cards within in few minutes would be counterproductive rather than prudent, thus rendering the AOR strategy defunct.

Seems that almost all issuers now significantly limit repeat bonuses. Seems like the last holdouts, Citi Hilton cards and BOA Alaska Air cards and Citi AA Executive cards, may have also recently succumbed to no more rapid churning. Thus it seems that churning credit cards in order to obtain multiple sign-up bonuses may no longer be the way to accumulate large numbers of miles and points.

Curious what others think.

I could be wrong. But I will never believe AOR's turnover time is only 2-3 months.

AOR takes advantage of credit reports not reported instantly. So people can apply several cards all at once. Success or not, the credit will get hit for sure.

2-3 months in recovery is not enough.

Churning is still available due to competitions among banks, but becomes more restrictive.

For example, at one time, Chase only allows 1 lifetime bonus per M+ product. Now the rule is 24 months and non-current cardholder.

Imagine this - what will happen if banks continue to allow rapid churning?

People can earn thousands of points/miles within days/weeks. This is no difference from printing money without anything to backup. Programs will be forced to devalue the points.

Churning is still available, but becomes more reasonable.

AORs were useful back when 0%, $0/capped fee, balance transfer offers were plentiful and bank/CD rates were good. Open massive new lines in one day, take $100K of free money for a year and park it in a CD making 5% and make a quick $5000 in interest.

Today the value is in signup bonuses. That means needing some high spend to meet the bonus spend minimum, so getting a bunch of cards at once makes it more difficult unless you are going to MS anyway.

IMO, AORs are a bad idea these days. I'm still blacklisted from Barclays for AOR shenanigans in 2008 because they freaked when they saw $100K of new debt a month after I opened two cards. Better to go slow and steady. Grab the best offers as they pop up instead of planning to take whatever is available just because it is six months from your last application. Banks would be less likely to take notice of one new account per month over six months instead of six new accounts in the same month.

If you apply for multiple cards on the same day with the thought that they won't see the inquiries for your other same-day apps, that ship sailed a long time ago. Inquiries are near instantaneous nowadays.