Using sign-up bonuses to accumulate points - is it likely to affect your credit rating?


I’m new to the whole Frequent-Flyer / accumulating points thing.

I’ve noticed some cards offer no fees for the first year, others have a modest fee with a large amount of bonus points available.

I’ve wondered for a while - is it worth signing up for a credit card in order to get the bonus points on offer and then cancel it once the conditions have been satisfied and points credited to your account? In my mind, the annual fee that some cards charge is modest in comparison to the bonus points on offer.

Can you even do this? If so, is it likely to affect your credit rating?

I’m just thinking of ways to quickly build a large balance of points - in particular QFF.


There is nothing stopping you cancelling your card at any time as long as you don’t have an outstanding balance.

Your credit record does not include when you cancel a card only when you apply (regardless if you’re successful or not). Multiple applications in a short space of time will have an impact on your credit rating .

In addition to Mark’s response above, I would suggest you have a look at this series of articles on Point Hacks which describe credit scores and history etc. in some detail:

Hope that helps!