We at creditalacarte love our credit cards and the way that we can use them to maximize the amount of money that we spend in order to get sweet credit card reward points. While having a few strategies is always the right thing to go for, we’ve always advocated against churning or manufactured spending. More and more companies are starting to catch on to these activities, and it will only be harder to do so as the time goes on. This is clearly evidenced by some new changes coming from Wells Fargo.
Wells Fargo has added terms to some of their credit cards applications that are against “misuse or gaming.” The full terms are listed below:
- “Misuse of gaming includes, but is not limited to:
- Obtaining or using an account to maximize Rewards earned and redeemed in a manner that is not consistent with typical customer activity; and/or
- Multiple Credit Card account applications and openings.”
When it comes to the first term, it does worry me on first glance. Maximizing credit card reward points is exactly what we do! I would hope they are implying people that manufacture spend, and not people that know which card to use for whichever reward category they are about to spend money on. If you are someone that is buying Visa gift cards, I would be a little bit careful moving forward.
Additionally, in the past it was fairly easy to churn credit cards – including Wells Fargo cards. If we’re being honest though, I’m not sure that there are actually cards from Wells Fargo that are actually worth churning. That being said, if you were thinking about doing so, it will definitely be a reason that they can deny or even close out an account in the future.
Both of these are always threats to the person that actually games the system. With the language being there, it now gives Wells Fargo ammo to take action against you if you participate in either of these methods.
What do you think about these new terms being added? Are you concerned at all or is this not an issue for you? Let us know down in the comment section below.