Imagine opening a shiny new credit card, earning thousands of reward points, and then cancelling it before the annual fee kicks in. Then you do it again—with another card. That, in a nutshell, is credit card churning.
It sounds clever — and for some Canadians, it’s a way to score free travel, cash-back, or perks. But as with any “too good to be true” strategy, there’s a fine line between being financially savvy and taking unnecessary risks.
Let’s explore how credit card churning works in Canada, what to watch for, which cards offer the best bang for your buck, and whether the game is really worth playing.
Key Points:
- Credit card churning involves repeatedly opening credit cards to earn welcome bonuses, then cancelling or downgrading them before annual fees apply.
- Churning can generate fast rewards, like travel points or cash-back, but carries risks such as credit score drops and overspending.
- Careful organization is required for success, including tracking spending requirements, deadlines, and annual fee dates while always paying balances in full.
- Churning may be fine for disciplined users but can be risky for those with upcoming major loan applications or bad credit management habits.
What Is Credit Card Churning?
Credit card churning means applying for new credit cards over and over to take advantage of welcome bonuses, then cancelling or downgrading the cards once the bonus is secured.
Here’s how it typically works:
- A bank offers a credit card with a huge welcome bonus, such as 30,000 points or $300 cash-back if you spend a certain amount in the first few months.
- You apply, get approved, and meet the minimum spending requirement.
You earn the bonus and decide whether to keep, cancel, or downgrade the card before the annual fee hits. - You repeat the process with a new card and another bonus.
The cycle continues until you’ve built up a nice stash of points or cash rewards — often for little to no cost, as long as you manage the process carefully.
How Does Credit Card Churning Work In Canada?
Let’s break it down step by step.
- Pick A Card With A Strong Welcome Bonus: The bigger the welcome offer, the better. Many Canadian banks lure new customers with limited-time deals worth hundreds of dollars in travel rewards or cash-back.
- Apply & Get Approved: Each application results in a hard credit inquiry, which may lower your credit score slightly, but temporarily.
- Meet The Minimum Spend: You must spend a certain amount (often between $1,500 and $5,000 in the first three months) to earn the welcome bonus.
- Collect Your Reward: Once you hit that threshold, your points or cash-back post to your account.
- Decide Before The Annual Fee Hits: If the card isn’t worth keeping long-term, cancel it or downgrade to a no-fee version.
- Rinse & Repeat: Successful churners track every detail: application dates, spending targets, bonus deadlines, and cancellation windows. Organization is key.
| Pro Tip: In Canada, this strategy works best when you focus on banks that offer generous welcome bonuses — often from programs like Aeroplan, Avion, or Aventura. |
Which Credit Cards Are Worth Churning?
Not all cards are created equal. The best ones for churning combine:
- High welcome bonuses (worth $300 or more in value)
- Low or waived first-year fees
- Reasonable spending requirements
- Flexible redemption options
Here are some categories of cards that churners in Canada often target:
Travel Rewards Cards
Travel rewards credit cards are popular in Canada. Cards that earn Aeroplan, Avion, or Aventura points are popular because the points can be redeemed for flights, hotels, and other travel perks. These cards often have the biggest sign-up bonuses.
Cash-Back Cards
If you’re not a frequent flyer, cash-back cards are simpler. Many offer first-year fee waivers and high introductory rates, like 10% cash-back for the first few months.
Cards With Downgrade Options
These are gold for churners. For example, you can get the CIBC Dividend® Visa Infinite* for its big bonus, then downgrade to the CIBC Dividend® Visa* (a no-fee version). This keeps your credit history alive without paying annual fees.
Looking for the best credit card options?
What To Look For When Choosing A Card
If you’re going to churn, pick cards strategically. Here’s what to check:
| Size Of The Welcome Bonus | The bigger the better, but look at how much spending is required to earn it. |
| Minimum Spending Requirements | Be realistic. Can you hit it using normal purchases? Overspending just to get a bonus cancels out the benefits. |
| Annual Fee | Many premium cards waive it for the first year. Plan to cancel or downgrade before it renews. |
| Bonus Eligibility | Some banks only let you earn the bonus once per card type. Aeroplan, for example, restricts repeat bonuses. |
| Ease Of Downgrading | Can you move to a no-fee card after the bonus period? That keeps your credit line open without fees. |
| Reward Flexibility | Can you redeem points for travel, statement credits, or gift cards? Versatility adds value. |
| Bank Rules | Some banks flag people who apply for too many cards in a short period. |
Which Points Programs Are Worth It?
Churners often focus on one or two loyalty systems to maximize value. Here are the big players in Canada.
Aeroplan
Aeroplan is Canada’s most popular travel-points program, partnered with Air Canada. Points can be used on Air Canada and Star Alliance partner flights.
- Pros: Flexible redemptions, big transfer network, great for travel within and outside Canada.
- Cons: Points can be devalued or harder to redeem at peak times.
Learn more: How To Earn Aeroplan Points
Avion (RBC)
Avion points are flexible and can be transferred to several travel partners or used directly for flights.
- Pros: Fewer restrictions, transferable points.
- Cons: Value per point can vary depending on how you redeem.
Aventura (CIBC)
CIBC’s Aventura points are also travel-focused, though redemptions can be slightly less valuable than Aeroplan or Avion.
- Pros: Easy to earn through CIBC cards, frequent promos.
Cons: Lower redemption value for long-haul flights.
Avios
Used mainly by British Airways, but Canadians can earn and redeem Avios through partner programs.
- Pros: Good for short-haul international flights.
- Cons: Limited value for domestic travel within Canada.
Cash-Back Programs
Sometimes the simplest rewards are best. If you don’t travel often, cash-back cards may offer more consistent value.
How Often Is It Okay to Churn?
There’s no official limit, but moderation is key.
Every time you apply for a new card, your credit file gets a hard inquiry, which can temporarily lower your score. Opening and closing too many cards too quickly may also shorten your average account age, which is another factor that affects your score.
As a general rule:
- Beginners: Start with one card at a time.
- Experienced Churners: Two to four cards per year is usually manageable if you’re organized and disciplined.
| Pro Tip: Avoid multiple applications within the same month and keep your overall credit utilization low. If you’re planning to apply for a mortgage or car loan soon, pause your churning activity until after that’s finalized. |
Tips For Successful Churning
Here are some tried-and-true tips for doing this wisely:
- Track Everything: Keep a spreadsheet with card names, application dates, minimum spend deadlines, bonus posting dates, and annual-fee renewal dates.
- Use Cards For Normal Purchases: Use your everyday spending on things like gas, groceries, utilities, or insurance to meet the bonus. Don’t buy things you wouldn’t normally buy.
- Always Pay In Full: Carrying a balance destroys your rewards’ value. The interest you’ll pay far outweighs any points earned.
- Downgrade Instead Of Cancelling: Downgrading helps maintain your credit history and keeps your credit utilization stable.
- Space Out Applications: Don’t open too many cards too close together. It looks risky to lenders.
- Read The Fine Print: Check whether you’re eligible for a welcome bonus. Some banks disqualify returning customers or those who’ve already held a similar card.
- Have A Redemption Plan: Before applying, decide how you’ll use the bonus. Free flights sound great, but only if they match your travel habits.
- Don’t Rely On “Manufactured Spending”: Some churners buy gift cards or pre-pay bills to inflate spending. This can violate card terms and get your account flagged.
- Monitor Your Credit: Check your score regularly. A dip of a few points is normal, but big drops signal you’re churning too aggressively.
- Stay Organized: Use reminders, apps, or trackers to avoid missing payments or renewal deadlines.
Benefits Of Credit Card Churning
When done responsibly, churning can deliver impressive returns.
- Fast Rewards Accumulation: Instead of slowly earning points, you can earn thousands in a few months.
- Low-Cost Perks: Many cards waive the first-year fee, meaning you could enjoy free flights, hotel stays, or cash-back for little to no cost.
- Flexibility: You can switch cards based on what’s best at the time — no need to stay loyal to one bank.
- Potential for Big Travel Wins: Redeeming a welcome bonus for a business-class flight or all-inclusive vacation is the dream scenario for many churners.
- No-Fee Downgrade Options: Downgrading to no-fee cards lets you preserve your credit score while avoiding ongoing fees.
Drawbacks Of Credit Card Churning
Credit card churning isn’t all free vacations and easy money. There are real downsides if you’re not careful.
- Credit Score Impact: Every application causes a hard inquiry. Too many in a short time can lower your credit score. Cancelling cards reduces your average account age, another factor in your credit score. Plus, losing available credit can raise your credit utilization ratio, which may also hurt your score.
Overspending: It’s easy to justify purchases to “hit the bonus.” If you start buying unnecessary stuff, the rewards lose value. - Program Changes: Banks and reward programs frequently change terms, limit bonuses, or devalue points. What looks great today may be less valuable next year.
- Lost Bonuses: If you cancel too early or miss a spending deadline, the bank might claw back your bonus.
- Time Commitment: Tracking multiple cards, payments, and fees can be stressful. A single mistake — like forgetting a payment — can wipe out your rewards and damage your credit.
- Bank Restrictions: Some issuers may flag frequent churners or deny future bonuses. Aeroplan, for example, limits welcome bonuses to one per card type.
| In short: you need to treat churning like a structured system, not a free-for-all. |
Is It Worth Using “Creative” Spending Tactics To Meet Bonuses?
Let’s be honest — hitting a $4,000 minimum spend in three months isn’t always easy, especially if you’re trying to stay on budget. That’s why many credit card churners look for “creative” ways to meet their spending requirements without actually spending more money than they normally would.
Pay Rent With Your Credit Card
One common tactic is paying rent or other large expenses through platforms like Chexy, which lets you pay with your credit card for a small fee. For many churners, the fee (often around 1% to 2%) can be worth it if it helps unlock a massive welcome bonus worth hundreds of dollars in travel rewards.
The math can make sense: if you pay a $60 fee to hit a bonus worth $600 in points, that’s a 10x return on investment.
Learn more: Can You Pay Your Rent With Your Credit Card In Canada?
Other Methods
Other tactics include prepaying bills, buying grocery or gas gift cards for future use, or covering big family expenses and having loved ones reimburse you later. These approaches can help you meet spending thresholds faster — without inflating your actual lifestyle spending.
However, there’s a fine line between being clever and being careless. Never buy things you don’t need just to chase points. And while paying rent or tuition with your card can make sense in moderation, using it for cash-like transactions (such as sending yourself money or using payment apps that charge extra fees) can violate your card’s terms.
| In short: use creative tactics sparingly and strategically. The goal is to maximize rewards — not to outsmart your budget. |
Is Credit Card Churning Worth It?
So, is credit card churning worth it? The answer depends on your goals, discipline, and ability to manage credit responsibly.
| When Churning Is Worth It | When Churning Is Not Worth It |
| For those who are organized, pay off their balances in full each month, and can track multiple cards, churning can be incredibly rewarding. Many Canadians earn thousands of dollars in free travel, cash back, and perks every year through strategic churning. | If you’re applying for too many cards too quickly or forgetting annual fee dates, the costs can outweigh the rewards. Churning also isn’t ideal for people planning a major loan soon — like a mortgage — since multiple credit inquiries can temporarily lower your score. |
Ultimately, credit card churning is worth it if you see it as a structured, short-term game rather than a reckless spending spree. Think of it like couponing for the financially savvy: smart timing, careful planning, and knowing when to stop make all the difference.
The key is knowing your limits. When done right, churning can stretch your dollars farther than you ever thought possible.
Final Thoughts
Credit card churning in Canada can be exciting and lucrative, but it’s not for everyone. Done right, it’s a strategic way to unlock big welcome bonuses, free flights, and cash-back rewards. Done wrong, it can hurt your credit and create financial stress. Remember: the goal isn’t to trick the system — it’s to play it smartly, responsibly, and within your means. When you do that, the rewards can truly pay off.
