Credit Card to Bank to Credit Card = $800 in Pocket

[Peter Parker]

I ALWAYS pay my credit card in full....

Got an offer on another for 0% on purchases for 18 months with 1.5% rewards....And got an offer from a bank for $500 to open a checking and savings account (with minimums for the checking and savings).  Did the following:

1.  Stopped charging on my "regular" card.

2.  Started Charging on new card--and kept charging up to the limit (20K).  Once limit reached, went back to old card and began paying in full again...

3.  Made minimum payments on new card and saved the rest.

4.  Once I had the requisite minimums, opened savings and checking at new bank

5.  Collected $300 in rewards from credit card

6.  Will collect $500 in rewards in 6 months.

7.  In six months, pay off new credit card and close Checking and Savings accounts.

Result $800 in my pocket using the greed of credit card companies and big banks.  Hopefully rinse and repeat with another card/bank in six months (or sooner if I find other offers)

[robartsd]

The manufactured spending crowd might come in to tell you that $300 sign on bonus for a card is a little low, but congratulations. What was needed to get $500 for opening depository accounts?

[Peter Parker]

The manufactured spending crowd might come in to tell you that $300 sign on bonus for a card is a little low, but congratulations. What was needed to get $500 for opening depository accounts?

I'm just starting to dabble in the churning/spending area. This took so little effort,  I figure it's a no brainer to do--if and when I get another bank offer in 6 months, I will do it again.

I'm having a hard time with understanding the "manufactured" spending theory--anyone care to explain it to a dummy?  I just figure, why buy "gift cards" with a credit card--why not just use the credit card?  I know I must be missing something.....

The bank offer was from Chase. 

* Open a Checking account with $25 and have direct deposit
* Deposit $15K in Savings
* Read the fine print about minimum time frames--90 days/6 months account open.