Does credit card churning hurt your credit score?

Churning can temporarily lower your credit score due to hard inquiries and reduced average account age. With responsible management, scores typically recover within 6-12 months.

Is credit card churning legal in Canada?

Yes, credit card churning is legal in Canada. However, banks may deny applications or close accounts if they suspect abuse. Amex has lifetime language on some bonuses.

Credit Card Churning Canada 2026 | Guide & Strategies

Q: What is credit card churning?

Credit card churning is signing up for credit cards to earn welcome bonuses, then cancelling and repeating. In Canada, you can earn thousands in rewards annually through strategic churning.

What Is Credit Card Churning?

Credit card churning involves:

Applying for credit cards with large welcome bonuses
Meeting minimum spend requirements
Earning the bonus (points, cash back, miles)
Cancelling or product switching before annual fees
Repeating with new cards

Best Canadian Churning Cards 2026

Card	Welcome Bonus	Min Spend	Timeframe	Annual Fee
Amex Cobalt	30,000 pts	$500/mo	12 months	$156
TD Aeroplan VI	50,000 pts	$7,500	12 months	$139
CIBC Aeroplan VI	50,000 pts	$3,000	4 months	$139
Scotiabank Passport VI	40,000 pts	$1,000	90 days	$149
Amex Gold	70,000 pts	$3,000	3 months	$250
BMO Eclipse VI	50,000 pts	$3,000	12 months	$120
HSBC World Elite	80,000 pts	$6,000	6 months	$149

Churning Value Estimate

First-Year Potential

Card	Bonus Value	Fee	Net Value
CIBC Aeroplan VI	$750	$139	$611
TD Aeroplan VI	$750	$139	$611
Amex Gold	$1,050	$250	$800
Scotiabank Passport	$400	$149	$251
Amex Cobalt (12mo)	$450+	$156	$294+
HSBC World Elite	$800	$0 FYF	$800

Total from 6 cards: ~$3,300+ in first year

Churning Strategies

The Pipeline Approach

Month	Card Applied	Bonus Earned
Month 1	CIBC Aeroplan VI	Work on spend
Month 3	TD Aeroplan VI	Bonus 1 earned
Month 5	Scotiabank Passport	Bonus 2 earned
Month 7	Amex Gold	Bonus 3 earned
Month 9	BMO Eclipse	Bonus 4 earned
Month 11	HSBC World Elite	Bonus 5 earned

Stagger applications 2-3 months apart.

Player 2 Mode

If you have a spouse/partner:

Double the churning opportunities
Referral bonuses add extra value
Coordinate applications

Category Churning

Focus on specific rewards:

Goal	Cards
Aeroplan miles	TD, CIBC, Amex Aeroplan
Cash back	TD Cash Back, Scotia Momentum
Hotel points	Amex Marriott, Bonvoy cards
General travel	Amex Gold, RBC Avion

Managing Credit Impact

How Churning Affects Credit

Factor	Impact	Duration
Hard inquiry	-5 to -10 points	12-24 months
New account	-10 to -15 points	6-12 months
Lower avg age	Varies	Ongoing
Higher utilization	Variable	Monthly
More available credit	Positive	Ongoing

Minimizing Damage

Strategy	Benefit
Space apps 3+ months	Fewer inquiries
Keep old cards open	Preserve credit age
Pay balances in full	Utilization stays low
Don’t max cards	Keep under 30%
Monitor credit	Catch issues early

Typical Credit Score Pattern

Timeline	Expected Score
Before churning	750+
After 3 apps	700-730
6 months later	720-740
12 months later	740-760
Long-term	Back to 750+

Bank-Specific Rules

American Express (Amex)

Rule	Details
Lifetime language	“Welcome bonus once per lifetime”
Enforcement	Moderately enforced
Wait period	2+ years before reapplying
Self-referral	Not allowed
Multiple cards	Can hold several Amex

TD Bank

Rule	Details
Bonus eligibility	Every 12 months (same card)
Product switch	Possible, may not get bonus
Multiple TD cards	Allowed
Application process	Can do in-branch or online

CIBC

Rule	Details
Bonus eligibility	~12-24 months
Product switch	Yes, may get bonus
Multiple CIBC cards	Allowed

Scotiabank

Rule	Details
Bonus eligibility	~12-24 months
Product switch	Yes
Scene+ integration	All cards now Scene+

BMO

Rule	Details
Bonus eligibility	~6-12 months
Product switch	Yes
Multiple cards	Allowed

Meeting Minimum Spend

Strategies

Method	Notes
Regular spending	Redirect all purchases
Pay bills	Utilities, insurance
Gift cards	Buy for future use
Prepay expenses	Insurance, rent if possible
Group spending	Pay for others, get reimbursed

What NOT to Do

Activity	Risk
Manufactured spending	Account closure
Gift card reselling	Suspicious activity flags
Overspending	Defeats the purpose
Cash advances	High fees, no bonus

Timing Your Applications

Best Times to Apply

Timing	Why
After existing cards age 6+ months	Credit impact stabilizes
Before large purchases	Easy minimum spend
Public offer improvements	Higher bonuses
Before annual fee due	Maximize free year

Annual Fee Calendar

Card Applied	Fee Due	Action Deadline
January	January next year	Cancel by December
June	June next year	Cancel by May

Many banks prorate refunds if cancelled within 30 days of fee.

Keeping Track

What to Track

Item	Why
Application dates	Know when to reapply
Approval dates	Calculate credit age
Minimum spend deadline	Don’t miss bonus
Annual fee dates	Cancel before charged
Bonus posting dates	Confirm rewards received

Tools

Tool	Purpose
Spreadsheet	Manual tracking
Credit monitoring	Borrowell, Credit Karma
Calendar reminders	Fee dates
Reddit communities	r/churningcanada

Exit Strategies

Product Switching

Instead of Cancelling	Product Switch To
TD Aeroplan VI ($139)	TD Rewards no-fee
Scotiabank Passport VI	Scotiabank Value
CIBC Aeroplan VI	CIBC Dividend
BMO Eclipse VI	BMO CashBack no-fee

Benefits: Keeps credit line open, preserves history.

Clean Cancellation

When to Cancel	Reason
No product switch available	Amex cards
Account > 2 years old	Less credit impact
Don’t want recurring fee	Simplicity

Is Churning Worth It?

Pros

Benefit	Value
Free travel	Thousands per year
Cash back	Hundreds per year
Perks	Lounges, insurance
Sign-up bonuses	Best rewards/$ spent

Cons

Drawback	Consideration
Time investment	Applications, tracking
Credit impact	Temporary but real
Complexity	Multiple cards to manage
Potential rejection	Mortgage, car loans

Best Candidates for Churning

You Should Churn If…	You Shouldn’t If…
Travel frequently	Applying for mortgage soon
Good credit (720+)	Difficulty managing cards
Organized	Tend to carry balances
Can meet min spend naturally	Have poor credit
Patient and methodical	Impulsive spender