Active Duty Churning
When credit card companies say “Thank you for your service”
Your active duty status makes credit card churning even more profitable. The Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA) waive annual fees at many of the major credit card companies.
Here is a list of credit card fees waived for active duty military members (and spouses listed as authorized user):
Under SCRA
- AMEX
- Capital One (not including spouses)
Under MLA
- Chase
- Bank of America
- Citibank
Amex and Chase cards are the most profitable so I will focus on those options.
Amex Platinum cards will be particularly profitable since the annual airline credits, monthly Uber credits, and bi-annual Saks credits all stack across cards. There are currently 4 versions of the Amex Platinum card (3 available to the public) and a Platinum business card.
Even though the Platinum cards are tempting to grab all at once, it is best to get the Chase cards you want early. This is because the Chase 5/48 Sapphire rule and 5/24 general rule still apply to members of the military so you should still start with Chase if you want to stockpile UR points. (You do!)
Business cards do not show on your personal credit report and do not count towards your Chase 5/24 status, but you still have to be under that to apply for business cards.
American Express also has application rules though they are less limiting. 1 in 5: You will only be approved for 1 new card in a rolling 5 day period. 2 in 90: You will only be approved for 3 new cards in 90 days. This only applies to credit cards, not charge cards. The Platinum cards count as charge cards but keep this in mind for other Amex cards.
Sample first year of year of active duty churning:
Month 1:
Apply for the Chase Sapphire Reserve. This card has the strictest application rules so you should get it early.
Bonus: 50k UR points after $5k spend in 3 months
Credit: 300 travel credit (AirBnb, hotels, Lyft, nearly anything works for this credit)
Month 2:
Apply for the Amex Platinum. This card has many benefits.
Bonus: 70k MR after $5k spend if you apply in an incognito window.
Month 3:
Apply for Chase Ink Preferred. Yes, you can apply for business cards. This is an amazing card with an incredible bonus. Plus, you can refer yourself to a second one in a couple months!
Bonus: 80k UR after $5k spend in 3 months
Month 4:
Get the Amex Platinum Business card. No Uber Credits on this one but you do get the $200 airline credit and a $200 Dell credit.
Bonus: 75k MR after $10k spend.
Month 5:
Refer yourself to a second Chase Ink Preferred and get a 20k UR referral bonus.
Month 6:
Apply for Amex Blue Business Plus. This card earns 2x on everything and will pair well with your platinum cards.
Bonus: 20k MR after $3k spend in 3 months
Month 7:
If you’re still under 5/24, look at the Chase Ink Cash and Chase Ink Unlimited business cards and decide if you want one. Otherwise, take the month off.
Month 8:
Open a Schwab account (and get a $100 bank account signup bonus) and apply for the Schwab Amex Platinum at the same time. This card will allow you to cash out your MR points at 1.25x their value. So the 2% your Blue Business Plus earns on everything just became 2.5%!
Month 9:
If you’re still under 5/24, look at the Chase Ink Cash and Chase Ink Unlimited business cards and decide if you want one. Otherwise, take the month off.
Month 10:
Get the last publicly available Amex Platinum card: the Ameriprise Platinum.
Bonus: 60k MR after $5k spend.
Month 11:
If you’re still under 5/24, consider any Chase business cards or the Chase Freedom. Otherwise, go for the Amex Gold Rewards card and get another $100 airline credit and a $120 dining credit at select chain restaurants.
Month 12:
Buy a larger wallet to hold all these cards.
How to meet all these Minimum Spend Requirements (MSR)
For Chase cards, you always have the option of bank account funding. Often earning another bonus when you open that new bank account. This one is particularly profitable.
Amex makes it harder. You cannot fund bank accounts with Amex. They have a dedicated Rewards Abuse Team (RAT) looking to deny your bonuses so do not buy a pile of gift cards either. You will have to put real spend on these cards and one of the best ways to do that is by paying your rent with Plastiq. As a bill payment platform, Plastiq lets you pay any bill with a credit card for a 2.5% fee. Your credit card signup bonus will make this fee worthwhile. Get your first $1,000 fee free with this referral code.
Tax season is coming up and paying your taxes is another low fee way to knock out an MSR. How I did this last year.
The trick to making churning profitable is to not spend more money than you would have without signing up for new cards. Keep that in mind when going after a new signup bonus.
At the end of this year, you should have $900 in annual airline credits, $600 in annual Uber credits, $300 in annual Saks credits, $300 in Chase travel reimbursement, $200 in Dell, $120 dining credit, and a huge pile of UR and MR points. Not to mention Priority Pass and Centurion lounge access, Global Entry, and the many other benefits attached to these cards. These card benefits alone make this worthwhile even if you cannot meet the minimum spend requirements for the signup bonuses.
A civilian would pay over $3,000 in annual fees for these benefits so be sure to take advantage of your active duty status.
