Hi, I've been a lurker here for awhile but I finally decided to join.

I am 22 years old and I recently signed up with Chase for the Freedom Card as my first cash back credit card. I spent over $500 (I put my monthly expenses on the card and pay it off in full, I don't buy unnecessary things) in the first three months so I will be receiving $100 cash back.

My question is.. would it be bad to open a few more accounts to get the cash back offers?

I currently have two credit cards (the new Chase account and a PNC credit card I've had since I was 18). I don't carry a balance on either and I've never paid a penny in interest.

I am going on a cruise with Royal Caribbean next March and I recently saw an offer where they have a credit card and you receive 10,000 points after your first purchase. That can be redeemed for a $100 onboard ship credit, so I'm thinking about opening an account and using it only once to get the points. There is no annual fee. I was going to wait a few months to space out the credit pulls.

Good idea or not to take advantage of a couple of these offers even if I don't plan on using the cards much after the inital purchases?

Old joke: how do porcupines mate?
Answer: carefully

That's how you should proceed if you do this. Just remember that you're playing with fire. Keep paying off all balances each month & you should be fine. You might get some rejections if you open too many cards in a short time though.

The Royal Caribbean card is probably a good idea since you've taking a cruise. A $100 credit won't go very far on the cruise ship. Have fun!!!

Personally, the credit card freebie game never appealed to me. Seemed like too much effort & risk to have a bunch cards open at the same time.

excellent idea. I made like 3000 last year credit card churning and my fico went up due to having so much available credit!. Be careful and marture and you will make out well.

Go for it. But proceed with caution.

Pros:

1) Bonus points
2) Better credit score (if you can handle it)

Cons:

1) Easy to get in over your head
2) Easy to spend money you don't have.

Make sure you pay your balance in full each month, make sure you use each card you have at least twice a year. A person your age should have no more than three cards. And NEVER get a card with an annual fee, no matter how enticing the reward might sound. In the end, YOU pay for the reward, not the credit card company, when you are being a charged an annual fee.

I make a bunch of extra cash by doing this, including $600 in amazon gift cards. We used the amazon gift cards for necessary purchases, not extras. So it really saved us some money.

I churn cards for travel rewards (which is money we would spend anyways). Right now, I have enough points/miles for 4 tickets to fly just about anywhere in the world first class and cover hotel stays. I am also putting together a trip for my spouse and sibling-in-law to Europe (air and hotel covered by points/miles).

Just a word of caution, if you need to do something like buy a house in the next couple of years, I would not get hot and heavy into the credit card game. Your FICO score very much could go up, but your mortgage company most likely will frown upon the activity and you'll be stuck with a slightly higher mortgage rate.

The idea of playing the credit card game is to save money, and many people very much loose sight of this.

Also, I wouldn't apply for the Royal Caribbean card. $100 is way too low for a hit on your credit report. I'd apply for a Citi Thank You card or a Sapphire preferred where you can get $300-$500 worth of gift cards for "everyday" expenses and then use that savings for your cruz. But, that is just me. Flyertalk has all the info and scuttlebutt you'll need.

I did this earlier this year and made an easy $1200.

But you have to be careful with this, your brain is going to want to spend more due to bonus chasing. I suggest opening the card, buying $500 worth of gift cards for the grocery store you shop at (or chop it up among gas stations and whatever else you spend money on) and then after that put the card away and never touch it again.A

Chase's offer isn't as good as earlier this year. They gave me $300 for doing the same thing.

Also, some offers are better than others. Like Citibank's ThankYou gives $250 back after $2000 in purchases. But that's only $250 if you go the gift card route, for cashback it was less.

I opened about 5 cards in about the course of 1 week and my credit score took a hit, but I don't care. It was the easiest $1200 but at the same time I have the discipline to keep within my means.

I still owe on two cards, but they're at 0% until January. I have the cash in the bank to pay them off today, but I'm taking my time with it.

One big suggestion: Stick to cash or equivalent rebate cards. Flyer miles or cruises have so much red tape to redeem them I don't find it to be worth the hassle.

I remember the days when $25 was the normal bonus and you'd be lucky to get your hands on a $100 offer.

Anyways the persons above have the appropriate caveats:

If you know or think you'll be needing your credit score, especially in the next 12 months, it's probably not worth it.
If you have had trouble in the past with confusing "available credit limit" with "available money to spend", it's definitely not worth it.
Make sure the points you are getting can be redeemed at a reasonable exchange rate with minimal fees for something you value, ideally something you would have spent money on anyways.
Avoid cards with annual fees or at least track them carefully.

I did it for $300 from Chase. Just had to make one purchase. I would do it again for any offer more than $250.

Thanks for all the replies!

I am obsessive when it comes to saving, so even having 100 credit cards at my disposal wouldn't change my thoughts about spending on things I don't absolutely need. I'm not at all concerned about that.

I might reconsider the Royal Caribbean card and look into opening just one more card and getting the highest reward possible. My credit score is 771 so I am assuming I would be eligible for pretty much any card?

Congrats on your credit! I know from experience that it takes a lot of effort and careful financial planning to attain such a fantastic score.

Just to clarify there are no yearly fees associated with these cards? Keep in mind that when you are openening new accounts companies do look at your debt to equity ratio. They also will look at how many accounts you already have out there. Opening (and closing) accounts does affect your credit score negatively. I would proceed with caution especially in this uncertain economy.

I took advantage of opening a checking account with Chase for the cash back offer- but did you know you have to claim that as income on your taxes? Is it the same with credit card cash back offers?

No. I have not heard of the cashback on the credit cards being taxed. But the bonus on the checking accounts is claimed as paid interest. Part of the reason I ignore the checking bonus offers.

I've found miles to be very easy to redeem. I booked a non-stop, openjaw flight to Europe last summer just two months out (2 tickets). It took no more time than booking a ticket I would have paid for. Tres simple. I'm also putting together a trip where I will fly " 'round the world" (with stopover) in Qatar, land in Bangkok, fly out of Cambodia. I've had no problem finding first and/or business class availability.

you may need to be a little flexible on dates, but if you value premium cabin int'l flying, it is well worth it, IMHO. Booking tickets takes some time, but it is hardly a hassle.

Cash back on a checking account really is income.

Cash back on a credit card is just a reduction in your expenses, like getting a discount. When you buy something on sale the discount isn't income, it just reduces your cost.