Australian consumers are savvier than ever, with a growing cohort turning to “churning” to squeeze every dollar from banks, credit cards, and loyalty programs. But while the lure of sign-up bonuses and cashback offers is strong, the churning trend is evolving fast in 2025—raising both new opportunities and new risks.
What is Churning? The New Face of Financial Loyalty
Churning isn’t just about racking up points on the latest credit card. It’s a calculated approach where Australians switch between financial products—think transaction accounts, credit cards, home loans, or even frequent flyer programs—to secure upfront incentives and better ongoing terms. With cost-of-living pressures and fierce competition among providers, churning has gone mainstream:
- Credit card churning: Signing up for cards with generous bonus points, cashback, or waived fees, then switching once the introductory period ends.
- Bank account churning: Moving transaction or savings accounts to score cash bonuses, higher intro interest rates, or fee waivers.
- Loyalty program churning: Taking advantage of points transfer promotions or switching between airline/hotel programs for maximum value.
Recent data from major banks reveals that nearly 1 in 5 new transaction account holders are switching primarily for sign-up bonuses—a figure that’s grown since 2023 as banks ramp up offers in a competitive market.
2025 Trends: Why Churning Is Booming (and How Providers Are Responding)
Several shifts in 2025 are supercharging the churning phenomenon:
- Record sign-up offers: In the wake of higher interest rates, banks and lenders are dangling larger bonuses to win new customers. Some credit cards now offer up to 150,000 bonus points for spending $3,000 in 90 days, while transaction accounts routinely offer $300+ for new customers.
- Digital switching tools: Fintech apps and comparison sites have made it easier than ever to compare, apply for, and switch financial products in minutes—removing the old friction from moving your money.
- APRA and ASIC scrutiny: Regulators are monitoring “bonus hunting” for potential risks, particularly if consumers rack up debt or damage their credit scores through frequent applications. In 2025, new guidelines require lenders to tighten eligibility checks, and some banks have introduced ‘churner bans’ (e.g. ineligibility for repeat bonuses within 12-24 months).
For example, Westpac and NAB both updated their terms in early 2025 to limit how often customers can claim introductory offers. Meanwhile, Qantas Frequent Flyer has rolled out targeted “retention offers” to keep churners from jumping ship to rival Velocity.
The Pros and Cons of Churning: Is It Worth It?
Churning can deliver real value—but only if you avoid the traps. Here’s what to consider:
- Potential rewards: Smart churners report earning thousands in bonus points, hundreds in cash, and even discounted travel each year. If you’re disciplined, these perks can far outstrip standard account returns.
- Risks and downsides:
- Credit score impact: Multiple credit card applications in a short period can lower your credit score, affecting future loan approvals or interest rates.
- Annual fees and missed payments: Failing to track annual fees, spending requirements, or payment due dates can quickly wipe out any gains.
- Tax implications: Cash bonuses on bank accounts may be taxable income. Points and rewards generally aren’t, but rules can change.
- Provider bans: Repeat churners may be blacklisted from future offers or even have accounts closed without notice under new 2025 terms.
Real-world example: Sydney resident Lauren switched three credit cards in 2024, earning nearly 350,000 points (enough for a business-class flight to Singapore). But after her fourth application in 18 months, her bank declined the application, citing ‘previous bonus offer use’—a growing trend as banks get smarter about churners.
How to Churn Responsibly in 2025
If you’re tempted to join the churning movement, keep these strategies in mind:
- Read all eligibility criteria and terms—especially repeat bonus rules and minimum spend requirements.
- Track your applications, spending, and annual fees using a spreadsheet or app.
- Limit credit card applications to 1–2 per year to avoid credit score hits.
- Be prepared for changes—providers can update terms, limit offers, or decline applications at any time.
- Weigh the time and effort required against the actual value of the rewards.
Churning isn’t a set-and-forget strategy. The most successful churners treat it as a side hustle: tracking every offer, optimising timing, and knowing when to sit on the sidelines.
