What Do You Understand By Credit Card Churning?

Sharing is caring!

A high-risk, high-reward strategy known as “credit card churning” entails opening a new credit account to take advantage of the card’s welcome bonus and then closing the previous one to move on to the next one. Credit card issuers use welcome bonuses to entice new cardholders and reward them for making a certain amount of money with their new card.

They are usually given out once, but they can be very valuable. Chase credit cards might not seem like a big deal, but the risks could impact your financial life. If done correctly, you may reap the benefits, but doing so may result in higher credit card debt, excessive spending, and a lower credit score.

 How to apply for credit cards?

You can apply for credit cards online and through the bank’s office. The application for a credit card online is fairly straightforward. The steps to apply for credit card are as follows: 

  • Visit the credit card section at your bank’s website to compare and research the available credit cards and select the one that best meets your requirements. Read about the credit card’s features and benefits, eligibility requirements, required documents, and charge structure.
  • Click “Apply Now” when you have all the information about the short-listed card. Complete the online credit card application form with the necessary information. Your name, age, residential address, date of birth, net monthly income, employment type, and PAN card information are among these details.
  • Submit your KYC documents, income proof, PAN card, employment details, and other supporting documents, along with the online application form.
  • You can check the status of your application online through the bank website after it has been submitted. The bank will review your documents and online application.
  • You will be approved for the card if you meet the eligibility requirements and your documents pass verification.

On the other hand, for another charge card, apply online through the bank office or contact our agents. You would need to fill out a paper application and send in your supporting documents through an offline application. After verifying your form and supporting documents, the bank will approve your application and provide you with a suitable credit card.

The Best Credit Card in India

Whether you’re looking for a way to build credit, travel rewards, cash back on everyday purchases, pay off high-interest debt, or any other reason, we’ve researched and crunched the figures to identify the ideal option. The best credit card in India includes those which provide the best services and offers.

 Each person has a distinct need for a credit card; to satisfy that need, you must select the card that best fits your needs. Some credit cards work well for paying bills online, while others are great for finding a good deal online. By making the appropriate decision, you can reduce the cost of your transactions. A credit card will receive a full star if it has no annual cost and no joining fee, although a membership fee of Rs 500 has been deemed equivalent to a yearly subscription.

Choose a credit card that fits your spending habits and lifestyle to get the most out of it. However, picking just one credit card from all options may take time and effort. Therefore, we have compiled a list of the top ten credit cards offered by various card issuers in India, followed by the best credit cards in each category—rewards, cashback, travel, and cards with premium features, for example.

Advantages of Credit card Churning

  • Get more benefits: You can earn significantly more cash back, miles, or points from sign-up bonuses if you apply for multiple credit cards instead of just one.
  • Get your rewards sooner: You can earn rewards for a particular credit card more quickly through churning than by simply using that card daily. Take, for instance, a cashback credit card that gives you 1.5% back on all purchases and $150 back if you spend $500 within the first three months. In most cases, you would need to spend $10,000 daily (which could take a year or more) to earn the same $150 that you could earn in just three months by spending $500.
  • Freedom to discontinue Card Use: Card issuers typically do not mandate that you use the card again or even maintain an open account after receiving a sign-up bonus. If you apply for a card with a good sign-up bonus but poor rewards for everyday spending, you won’t be stuck with it; you can always switch to another card.


Numerous credit card issuers provide attractive sign-up bonuses to induce customers to apply for cards and make sizable purchases with them shortly after their accounts are opened. Based on the card, prospective cardholders can accrue rewards like cash back or points they can use to make purchases if they spend a minimum amount of money within a set time limit, frequently within three months of receiving the credit card.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: