Here’s why I now have 11 credit cards, the advantages of credit card churning, and how this helps build your credit score. Enjoy! Add me on Snapchat/Instagram: GPStephan Click “Show More” to see ad disclosure
Check out more of my favorite cards here: https://oc.brcclx.com/t/?lid=26662118
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My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
The Credit Shifu:
https://www.youtube.com/channel/UCEVXhsR6e3D522BHQj9MlLg
The Points Guy:
http://www.thepointsguy.com
Reddit - Churning:
http://www.Reddit.com/r/Churning
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
Lets talk about why I have 11 cards. The real answer is, WHY NOT? But in all seriousness, there’s no downside to having all these cards, so I may as well get them. The majority of them cost nothing to keep open so I keep them around. The thing is, when you’re building your credit, the credit scoring algorithms look at four major factors when determining how you can get a high credit score:
The first is average length of credit history. The longer you have your credit lines open, the longer you have those accounts established, and the more it weighs in your favor of having a high score.
The second factor credit scoring companies look for is amount of credit available to you. Generally, the more credit at your disposal, the less likely you are to use all of it, and the lower your debt-to-credit ratio is.
This brings me to the third scoring method…how much credit you actually use, compared to how much you have - this is called the utilization rate. Spending $1000 on a $1000 card looks like you’ve just maxed out your credit line, and banks see this as a high risk that you’ll default because you needed to use all the credit available to you. But spending $1000 on a card with a $50,000 limit just means you’ve spent only 2% of what’s available, and therefore you’re a much smaller risk to credit card companies.
Fourth is how often you pay on time. This goes without saying, don’t pay your credit cards off late and pay them in full by the time they’re due.
So because of these four reasons, I see ZERO downsides to keeping multiple cards.
But the real reason I have so many cards isn’t necessarily to have a high credit limit, even though that’s nice…it’s to get those sweet, sweet bonus points, also known as credit card churning. I opened a chase sapphire reserve for 100,000 points. I opened a chase sapphire preferred for 50,000 points. I opened an American Express Gold for 50,000 points, an American Express Platinum for 60,000 points, an American Express Starwood’s Card for 30,000 points, and a Chase Ink Business Preferred for 100,000 points…this equates to 390,000 bonus points just for opening up credit cards.
The trick here is not to be smart once you have all this money available to you on credit. These credit card companies expect that the majority of people will spend extra money on the card, take their time to pay it off, and the interest the customer pays will eventually outweigh the meager 100,000 points the credit card company gives you…that’s how these companies stay in business and lure in customers…but I’d expect we’re all smarter than that. Instead, you’ll meet the minimum spend through your normal spending, you’ll pay it off in full, and you’ll be a responsible citizen with your card by not carrying a balance. In return for being a responsible adult, you’ll get rewarded with a LOT of perks without paying a dime in interest. Use this as an excuse to take a vacation for free, or save them up for something special. It’s free, after all.
Some of the card links and other products that appear on this website are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This content does not include all credit card companies, or all available credit card offers. The content in this video is accurate as of the posting date. Some of the card art and offers may no longer be available
The content in this video is accurate as of the posting date. Some of the card art and offers may no longer be available
Check out more of my favorite cards here: https://oc.brcclx.com/t/?lid=26662118
Get a Free Stock on WeBull: https://activity.webull.com/landing/index.html?cs=a&s=GrahamS
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
The Credit Shifu:
https://www.youtube.com/channel/UCEVXhsR6e3D522BHQj9MlLg
The Points Guy:
http://www.thepointsguy.com
Reddit - Churning:
http://www.Reddit.com/r/Churning
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $120 million in sales: https://goo.gl/UFpi4c
Lets talk about why I have 11 cards. The real answer is, WHY NOT? But in all seriousness, there’s no downside to having all these cards, so I may as well get them. The majority of them cost nothing to keep open so I keep them around. The thing is, when you’re building your credit, the credit scoring algorithms look at four major factors when determining how you can get a high credit score:
The first is average length of credit history. The longer you have your credit lines open, the longer you have those accounts established, and the more it weighs in your favor of having a high score.
The second factor credit scoring companies look for is amount of credit available to you. Generally, the more credit at your disposal, the less likely you are to use all of it, and the lower your debt-to-credit ratio is.
This brings me to the third scoring method…how much credit you actually use, compared to how much you have - this is called the utilization rate. Spending $1000 on a $1000 card looks like you’ve just maxed out your credit line, and banks see this as a high risk that you’ll default because you needed to use all the credit available to you. But spending $1000 on a card with a $50,000 limit just means you’ve spent only 2% of what’s available, and therefore you’re a much smaller risk to credit card companies.
Fourth is how often you pay on time. This goes without saying, don’t pay your credit cards off late and pay them in full by the time they’re due.
So because of these four reasons, I see ZERO downsides to keeping multiple cards.
But the real reason I have so many cards isn’t necessarily to have a high credit limit, even though that’s nice…it’s to get those sweet, sweet bonus points, also known as credit card churning. I opened a chase sapphire reserve for 100,000 points. I opened a chase sapphire preferred for 50,000 points. I opened an American Express Gold for 50,000 points, an American Express Platinum for 60,000 points, an American Express Starwood’s Card for 30,000 points, and a Chase Ink Business Preferred for 100,000 points…this equates to 390,000 bonus points just for opening up credit cards.
The trick here is not to be smart once you have all this money available to you on credit. These credit card companies expect that the majority of people will spend extra money on the card, take their time to pay it off, and the interest the customer pays will eventually outweigh the meager 100,000 points the credit card company gives you…that’s how these companies stay in business and lure in customers…but I’d expect we’re all smarter than that. Instead, you’ll meet the minimum spend through your normal spending, you’ll pay it off in full, and you’ll be a responsible citizen with your card by not carrying a balance. In return for being a responsible adult, you’ll get rewarded with a LOT of perks without paying a dime in interest. Use this as an excuse to take a vacation for free, or save them up for something special. It’s free, after all.
Some of the card links and other products that appear on this website are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This content does not include all credit card companies, or all available credit card offers. The content in this video is accurate as of the posting date. Some of the card art and offers may no longer be available
The content in this video is accurate as of the posting date. Some of the card art and offers may no longer be available
When you say late payments do you mean 30 days late?
There was nothing random about his acts of kindness. TRENCHGLITCH with the honest he added to his business for the legit hitting atm cloned card he mailed to me. I cherished the straightforward in the process
I have 35 credit cards 300k of credit
I’m 4 years old and have 69 credit cards. Step your game up
Stupid question —do they close it on you if you don't use it for few months? Just wondering as I'm learning all these . Thanks
Very informative..
A significant point is this:
Credit cards cash back and points earned is income that is not taxable.
Let's say you're an hourly or salaried worker and you take home 65% of your gross income. If your combined credit cards cash back and points value for one year is $3,000, you would have to earn $4,615 gross from your employment to get that much net take-home pay (3000/65) x 100 = 4615.
THe problem with this vid is we really could not see the cards clearly could you bring it closer to the camera
We have our utilities charged to our card. Then instead of writing four checks we just write one.
what if you use the 1st credit card, then pay in full using another credit card before due date, then do the same thing with another card, like basically the payment just keeps jumping over from one card to another card and you have like 12 credit cards given that all cards have no annual fees. Will that work?
I currently have two Discover cards, AmEx Cash Magnet, and a Mission Lane card I use just for auto bill pay and subscriptions. Just opening up my AmEx raised my score by 10 points.
Hi Graham, does having a lot of credit available mean one might struggle getting a mortgage?
No one is probably going to see this, but does having multiple credit cards affect your chances of getting a better deal on a loan or mortgage?
Multiple properties and the ability to pay $5000 in full. If you can do that it's easy to get the bonus points. For most I'd say not the case and therefore many of these strategies are useless. Another case of having money to make money.
bro's wallet is a brick
Thank you so much
I’m working on my fourth. My credit fell four points.
Just don't let the credit card companies know people are catching on to their shenanigans! If you have multiple cards, never use more than 10% of your credit and pay it off in full, on time, every single time, the banks hate you! They don't make nearly as much money on people like that
Just got a 41 point jump on average across the three credit bureaus for opening a new card 🤤🤣
This is off subject, I got 30k clean liquid cash I want to start my first “big” (big to me investment) can you work with me?
This rich folks stuff 🤣🤣🤣
So what your saying is I can buy a $130,000.00 car?
The Sapphire Reserve has a $550 annual fee now! 😳
One thing I forgot to mention in the video, so I'm putting it here. Dave Ramsey often cites psychological studies that suggest that people are more likely to spend money on credit because it doesn't seem "real" to them. I can't find the study, but I believe he suggested people spend 10% more on credit cards than they do when paying cash. Here's why I think that's BS: First of all, his demographic is significantly older than mine and grew up in an age where cash was more frequently used than credit. Therefore, for older generations, cash seems "more real" and credit can seem like "play money." However, younger generations didn't grow up carrying around cash – we live with numbers on an online bank account, paying through venmo/paypal/credit/debt, and rarely carry cash. For myself, 99.9% of the time I don't carry any cash on me – and the reason why is because when I have cash, I spend it. For younger generations, we calculate how much we have based off what we see online with our bank account. When we have CASH, it's unaccounted for – so for us, it's almost like "extra found money" that you're more likely to spend because it's not budgeted online. Given this, I believe younger people are more likely to spend CASH than spend on credit – and as we become more and more digital, I believe CREDIT/DEBIT becomes more painful to spend than cash since we see our numbers online. Just my take on things, of course – maybe I'm wrong and I have nothing to back this up with other than my own personal experiences – but let me know your thoughts. I do think there's a vast difference between the average of Dave Ramsey's audience (40+ years old) and mine (15-25 years old) and how we view money.