If you frequent the personal finance world of Reddit, credit card churning might be a term you’re familiar with. With this rewards-reaping method, savvy credit cardholders can maximize the benefits they get from credit card sign-up bonuses.
Is credit card churning illegal, though? Could you end up getting in legal trouble for trying to capitalize on advertised benefits?
Let’s dive into what you should know.
Is Credit Card Churning Illegal?
No, credit card churning isn’t illegal. However, card issuers frown upon it. In fact, now that they’ve caught on to the practice, they often put systems in place to make churning more difficult.
These days, many credit card issuers have updated the terms and conditions for both their rewards programs and their credit cards. This is in an attempt to make credit card churning less lucrative, more difficult, or downright impossible.
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