Policy Change for American Express

So the day has finally come – American Express Canada is following suit to it’s U.S. counterpart, putting an end to credit card churning. For those of you who are not familiar:

churning – practice where people sign up for a credit card with the purpose of obtaining the sign up bonus, then cancel the card after 6-12 months. Repeat the process once every 1-2 years.

There is now an extra item on the terms and conditions when you apply for a new card:

  • This offer is only available to new American Express Gold Rewards Cardmembers. For current or former American Express Gold Rewards Cardmembers, we may approve your application, but you will not be eligible for the welcome bonus.

This obviously changes the game a bit, so you should be looking at other ways to collect points instead of churning with American Express. Don’t get me wrong, Amex cards are still great to have, and you can still earn points through purchases, referrals, and occasional bonus events. In addition, it actually will take you a while to go through their entire offerings

amex_personal Amex_business

All the cards here are great to have, it will still take you 4 years to go through all the cards and sign up bonuses if you apply 2 each year. After 4 years, you would be eligible for sign up bonus again from the first card, then repeat the cycle.

Again, a rule of thumb with credit cards and loyalty points is to earn and burn. The game is constantly changing, so you will need to adapt. Spend the points once you’ve reached your goal, don’t wait on it!

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