Credit card churning is the practice of repeatedly applying for new cards to collect sign-up bonuses and then downgrading or canceling the cards. While this can be profitable, it comes with risks. Each application triggers a hard inquiry on your credit report, which can temporarily lower your score. Banks also have rules to limit abuse, such as restricting the number of cards you can open in a set period.

Churning requires careful tracking of annual fees, spending requirements, and cancellation deadlines. Mismanagement can lead to missed payments, lost rewards, or damaged credit. For disciplined individuals, it can mean free travel or cashback, but for most, it’s a risky and complicated strategy.