Churning credit card sign up bonuses is kind of like card counting in Las Vegas. Yes, if you follow the rules, then it’s technically completely legal, and to your advantage to do. However, it’s always going to be frowned upon. As far as credit card companies go, they use sign up bonuses to attract customers to their cards. So if someone is able to get the sign up bonus multiple times in a quick window, the financial institution technically lost out. Obviously that doesn’t make them too happy, and we are seeing Bank of America’s reaction.
It seems as though if you open and close the Alaska cards (both personal and business apply) quickly, Bank of America will close out the accounts and no longer allow you to get approved for the cards.
Not too long ago, Bank of America added in some terms against churning for their core credit cards. The terms basically stated that you would not be allowed to get the same card if you’ve had it in the last 24 months. The Alaska and Premium Reward cards went a step further and said you can only get approved if you currently don’t have the card and you haven’t had it in the last 24 months. This would imply after closure, you would have to wait 24 months to apply.
While the terms were changed, it looked like it didn’t make a difference in practice. These chances were made back in January of 2019, and almost 2 years later, we are finally seeing people suffering the repercussions for it.
While I can see churning being profitable, the main concern here is that you’ll be locked out of not only credit products, but even blacklisted form a certain financial institution. At this point in time, it looks like those that are getting their Alaska accounts closed are not getting their complete Bank of America accounts closed. Still, it’s a risk that is always looming.
Have you been churning Alaska or any other Bank of America cards? Let us know your experience down in the comment section below!