What Is Churning?

Churning means applying for cards primarily to collect sign-up bonuses, meeting the minimum spend, then closing or downgrading before the second-year fee hits — and repeating. Done carefully, Australian churners report $2,000 to $5,000 a year in bonus value.

Why It Works

Sign-up bonuses are the richest single source of points in the market. The Qantas Premier Platinum offers 100,000 points (worth about $1,200 at our mid-range valuation) for a $149 first-year fee. The Velocity Platinum offers 90,000 points with a $0 first-year fee. No amount of everyday spend matches that return per dollar.

A Sensible Churning Cadence

  • One card at a time. Apply, meet the minimum spend organically, wait for the bonus to post.
  • Three to six months between applications. Every application is an enquiry on your credit file; clusters of enquiries drag your score and trigger automated declines. Read how credit scores work before starting.
  • Diarise the anniversary. Cancel or downgrade before month 11 so the ongoing fee never lands.
  • Keep a "keeper" card. A long-held no-fee card like the 28 Degrees Platinum anchors your credit history's average age.

The Rules That Trip People Up

Issuers exclude existing customers and recent cardholders from bonuses — "new customer" windows of 12 to 18 months are common, so closing a card today doesn't make you eligible tomorrow. Minimum spend must be eligible spend: cash advances, balance transfers and government payments usually don't count. And bonuses can take 8–12 weeks to post; screenshot the offer terms on the day you apply.

Honest Risks

Churning is not free money. Multiple enquiries can complicate a home loan application in the following year or two — if a mortgage is on your horizon, stop churning at least 12 months before you apply. Missed payments on a card you opened for the bonus will cost far more than the bonus is worth. And banks can and do change exclusion rules; the FAQ tracks the common gotchas.

Is It for You?

If you pay in full every month, keep clean records, and have no major credit applications planned, churning is the highest-yield strategy in Australian points. If any of those don't apply, a single well-chosen keeper card from our comparison tool will serve you better.