this post was submitted on 16 Nov 2024
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Asklemmy
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Churning. The art of spending money in a circle using accounts that offer rewards.
I knew a guy who had like 50 credit cards and 25 bank accounts. He could move money in circles all month, and get like $100k/year in cash back rewards on top of his $100k/year job. His credit report said he spent $8M a year on credit cards. His credit score was 845.
He also pretty much flew for free, and he flew all the time. There were a few mileage programs in his little scheme.
As far as I can tell, 100% legal. The banks just make frequent changes to their offerings to make it hard to do.
Bahaha that is pretty awesome.
I've "debated" doing that, since I'm debt free aside from mortgage and have a good credit score, so I could probably open enough cards to get the cycle moving. But the research to find the best hidden gems of reward programs is probably hard.
Other thing I've seen people with great credit scores do is basically put EVERYTHING on 0% intro credit cards, pay minimums, save all the money in a HYSA or a mutual fund, then pay off the balance right before the 0% ends, and then open a new 0% card and repeat. Which seems finicky, but basically gives yourself a 4-8% raise if you set it up to just take care of itself automatically.