By: Carmen Chai | CreditCards.ca | November 26, 2014
Read More, and see what Mike Gomes says about the consequences of churning.
Many credit cards come with great sign-up bonuses – tens of thousands of rewards points, a free tablet, $100 or more in cash back. With extravagant incentives like these, it’s no wonder that credit card churning has caught on in Canada.
Churning is when someone gets a new credit card account solely for the sign-up bonus, then closes the card before the next annual fee kicks in. If a new promotion is unveiled, a churner will sign up for the card again, or sign up for a card form another issuer offering goodies. Consumer are catching on to the trend, but so are issuers, who are working hard to make sure new cardholders stick around longer than a year…
