Question
I was just wondering...are credit card companies aware of churning? If so, why do they let people get away with it? Since they presumably have to pay airlines for the account opening bonuses, how does it benefit them to have people continually open and close accounts?
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That's why if you look at the T&C's many say you won't get the bonus more than 1 time in a 6 month period. Also, the annual fee, which you have to pay to get the bonus off-sets a large portion of the cost of the bonus miles.
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I was thinking of cards with no annual fee the first year and people who churn with regularity.
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Substantially similiar discussion...
http://flyertalk.com/forum/showthread.php?t=580355
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Substantially similiar discussion...
http://flyertalk.com/forum/showthread.php?t=580355
Thanks, that was helpful.
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I suspect that churning is allowed (when it is allowed) for the same reason that grocery store coupons exist -- most people don't take advantage of the opportunity. With credit card companies, first of all the customer service person handling the credit app couldn't care less, second I suspect that a fraction of a percent engage in churning.
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Some airline cards do not let people churn. Delta Amex will only post one time bonus miles. I applied for a Delta Amex 4 years ago and again last month and they would not give me any bonus because "I had already recieved a bonus once'.
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i have received bonuses on two cards, two years in a row and about to cancel my card again.