Credit Card churning is when people take out a new credit card just for the sign up offer. Some people will take out multiple cards at once, while others take out one at a time. Credit card churning isn’t for everyone, especially if you have credit card debt, are trying to improve your score, or have a major life event happening.

If you currently have credit card debt, taking out a credit card for the sign up offer is not ideal. You may not even be approved, and being rejected could lower your score. In addition, credit card churning only works if you are good with paying off your bills right away or by the statement due date to avoid accruing interest. Most people who do credit card churning use a credit card like a debit card.

If you are trying to improve your credit score, especially if it is lower, you don’t want to churn out a card. When you apply for a new card, your credit length and new account categories will be dinged. These are lower-impact areas, but they will lower your score right away. On the other hand, if you have a strong credit score, you can take losing a few points because they will eventually go back up.

You don’t want to churn a card if you have a major life event planned, like buying a home or car. Taking out additional credit or changing jobs can hurt the loan amount you can get. However, you can churn a card after this life event.