How to Churn Credit Cards While Maintaining Credit Score?

When you churn a card and get the rewards points, how long should I wait after I get the points to burn the card and apply for a new credit card with a another bank so It doesn't affect my credit score/history? Should I wait a bit between the time I receive the points and the time I cancel the card? If so, how long sounds reasonable?

Also, with ANZ rewards points, can I convert those points them to Qantas points or do ANZ have their own frequent flyer system? I applied for an ANZ credit card that gives you 120000 points if you spend $1500 in 3 months and was trying to see if I could convert them to Qantas points but there's no information on their website

Thanks

Comments

  • +1 vote

    trying to see if I could convert them to qantas points but there's no information on their website

    I assume you applied for the Platinum card?
    If so, its stated on their website

  • +1 vote

    'ANZ rewards points, can I convert those points them to qantas points' - No unfortunately you can't. They used to offer Velocity at 2:1, and Krisflyer/Asia at 3:1, but I think that has been suspended at the moment due to COVID.

    I think all thats on offer right now is the gift cards you can exchange the points for, as well as the rewards store

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      I'm looking at the link @ughhh had linked me and seems like they still offer velocity frequent flyer which I guess is good enough.e Thanks for your response

  • +3 votes

    When you churn a card and get the rewards points, how long should I wait after I get the points to burn the card and apply for a new credit card with a another bank so It doesn't affect my credit score/history?

    There's no straight answer. Credit scores are complex and there are more factors than whether you apply for a credit card. I have a background in risk, so I understand how this works quite well (though not personal credit risk, but the ideas are similar).

    Basically, if you want a good rule-of-thumb, when you apply for credit, you will see a dip in your score, when it is approved, you will generally see an increase in your score, more often than not, to a higher level than where you started before you applied.

    What you want to avoid is getting rejected - this will harm your credit score, as will "farming" for an acceptance (i.e. just applying everywhere and hoping to get something).

    Should I wait a bit between the time I receive the points and the time I cancel the card? If so, how long sounds reasonable?

    Generally there are only so many promotions going on at the same time. The time limit on them is usually 1 - 2 years before you're eligible for more promotions, so if you're churning, you'll run out of offers quite quickly.

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      thanks mate

  • +5 votes

    I would think most OzBargainers follow this routine:
    * Apply for and get the card.
    * Make minimum spend.
    * Receive points/rewards and spend/use them.
    * Close account and move onto next card

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      and by doing this, try your best to avoid the annual fee, late payment fee or any interest.