⚠️ Senior Editor's Note (2026 Update): "Credit Card Churning" involves rapidly opening and closing accounts, which can negatively impact your credit score. If you plan to apply for a mortgage or personal loan in the next 6-12 months, DO NOT use this strategy. Always pay your closing balance in full to avoid interest charges (20%+) that will instantly negate the value of any rewards.
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| Fly Business Class for Free? |
We all dream of turning left when we board a plane. Champagne before takeoff, lie-flat beds, and designer pyjamas.
But in 2026, a Qantas or Singapore Airlines Business Class ticket to London or Los Angeles costs between $9,000 and $14,000. Who can afford that? Most families can't.
Yet, thousands of savvy Australians fly Business Class every year for roughly $600 to $900 in taxes and carrier charges. How? They don't use cash. They use points. And they don't earn those points by flying; they earn them by "Churning" credit cards.
What is Credit Card Churning?
Churning is the strategic process of applying for a new credit card specifically to trigger the massive "Sign-Up Bonus" (e.g., 70,000 to 120,000 Qantas or Velocity Points), holding the card for the required period, and then cancelling it to move on to the next offer.
Australian banks (ANZ, NAB, Westpac, AMEX) are fighting aggressively for customer market share. They are willing to incentivize you with huge points bundles just to get you on board. In 2026, offers exceeding 100,000 bonus points are the new standard.
Spending vs. Signing Up
Why is churning so powerful? Let's compare the timeline to earn 100,000 points.
| Method | Requirement | Time to Earn 100k Points |
|---|---|---|
| Organic Spending | Spend $100,000 on groceries (1 pt per $1) | 3 - 5 Years |
| Churning (Bonus) | Spend $3,000 - $5,000 in first 3 months | 90 Days |
By signing up for just one card, you earn what a typical spender accumulates in half a decade.
Don't Waste Points on Toasters! (Valuation)
This is where beginners fail. They take their 100,000 points and redeem them for a toaster or a $500 Gift Card from the bank's rewards store. This is terrible value.
To extract the "Business Class" value, you must transfer points to an airline program and book "Classic Flight Rewards" (Qantas) or "Reward Seats" (Velocity).
- 100,000 Points for Gift Cards: Value = ~$500 AUD.
- 100,000 Points for Business Class Flight: Value = ~$5,000 - $8,000 AUD.
The points are effectively worth 10x to 15x more when used for luxury travel compared to merchandise.
The Risks: Protect Your Credit Score
Applying for a credit card leaves a "Hard Enquiry" on your credit file. Multiple enquiries in a short period will damage your score and lead to rejections.
The Safe Churning Rules:
- The 3-4 Month Rule: Never apply for cards back-to-back. Leave a "cooling off" period between applications.
- Pay in Full: Never carry a balance. Paying interest destroys the arbitrage.
- Cancel Before Renewal: Most premium cards charge a high annual fee (e.g., $395). The strategy involves cancelling the card after receiving the points but before the second year's fee is charged.
Chief Editor’s Verdict
Credit card churning is the closest thing to "free money" in the Australian financial system. It requires impeccable organization and financial discipline, but the reward is sipping vintage champagne at 30,000 feet for the price of an economy ticket.
Your Action Plan
1. Check your credit score for free (via Equifax, Illion, or Experian).
2. Identify a card offering 70k - 100k bonus points with a manageable annual fee.
3. Hit the minimum spend requirement (e.g., $4,000 in 3 months) using essential expenses like insurance, rego, and groceries.
Start small, stay disciplined, and plan your dream holiday.
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