Why I Have 30+ Credit Cards [Churning Fundamentals Part 1]


This video is gonna be the most valuable YouTube
video you’re gonna watch in the entire year. So far it saved me over $20,000. Sound good? Stay tuned! What’s going on guys? Dr. Jubbal, MedSchoolInsiders.com. I’m out here in New York, in this beautiful
hotel, rocking my all-new medical insider’s merch. You can get your own down below this video. Now in this video, we’re gonna be talking
about credit card churning. I’ve opened about 30 credit cards, most of
which are still open. And it is because of this hobby called credit
card churning that I was able to fly to all 20 of my residency interviews all at different
cities for free. That’s also allowed me to fly out here to
New York, London, New York again, back home to the West Coast also for free. In fact, I’ve done hotels for the last four
weeks all for free. If you guys follow me on Instagram, that’s
@KevinJubbalMD, then you’ll also know I love traveling. I did Asia for six weeks earlier this year
and all those flights were again for free. I flew to Capetown before that for free, I
went to Berlin for free, I went to and from Seattle, to and from Northern and Southern
California, all this for free. So essentially, credit card churning can offer
tremendous value. Now, at this point you’re probably thinking
“Dr. Jubbal is gone crazy!”, maybe but not because of credit card churning. Credit card churning actually makes a lot
of financial sense. You probably think I have a terrible credit
score, it’s actually over 800. I’m gonna be going over all the factors that
go into a credit score in a future video because there’s so much misinformation, so many misconceptions out there about it. You may be thinking this is a scam, there
has to be some catch. There is kind of a catch, the catch is it
takes a lot of time to get up to speed to do this. No one’s gonna spoon-feed you, I myself have
put in over 100 hours over the last six years of which I’ve been doing this. And I’m not saying you need to put it over
100 hours of research et cetera, I’m gonna help you, but you should be putting in at
least a couple hours every week for at least a couple of months to be proficient and actually
doing things correctly. You may be thinking that you can lose money
and that this is dangerous. I would actually argue that if you are not
stupid with money, if you have some level of financial discipline and some financial
fundamentals down, it’s actually relatively safe. That being said, I am not your doctor, I am
not your financial adviser, this is for informational purposes only, proceed at your own risk! Now, with that said, how I got into this,
I was a third-year medical student and one of my friends told me about this hobby that
could save us thousands of dollars during residency interviews. For residency, you need to fly to multiple
different cities and stay in hotels and they don’t pay for that, that’s out of your own
pocket. Now, I paid for my own college, my own medical
school, I didn’t get help from my parents. So being in debt, I couldn’t really afford
to fly to 20 different cities. So that’s where credit card churning really
saved me. Now, why would companies do this? Well, here’s the thing, credit card companies
make a lot of money off of you and that’s in two primary ways; first, anytime you make
a purchase with a credit card, let’s say you go to medschoolinsiders.com, you buy some
personal statement editing, Med School Insiders needs to pay the credit card companies a percentage
of that sale, for every single sale. That’s one way they make a lot of money. Number two and more importantly, they make
a lot of money off of your debt. For some reason, people rack up credit card
debt, and the average American depending on the state that you reside has anywhere between
4,000 and $ 8,000 of credit card debt and that debt accumulates interest at somewhere
around 20%, which is absurd. But, if you’re able to open up the new credit
cards, take advantage of that signup bonus, not rack up like thousands of dollars of credit
card debt and do things properly which I’m gonna explain how, then you have a lot to
gain and not much downside. Now, who should do this? Again, informational purposes only, I am not
saying whether you should or should not do this. I think that most premed and medical students
have a lot to gain especially because they’re gonna be doing other medical school or residency
interviews where they to fly to a lot of different cities or if you just like traveling, and
you like hotels, you like free stuff, then you have a lot to gain. Now, I’m making this video because as I’ve
talked about on the Med School Insiders channel, the one thing that bothers me so much is when
people give bad advice. I remember when I was a medical student, there
was all these articles and even upperclassmen would tell me “oh you know, only stick with
the same airline you’ll get points and loyalty with them, stick with the same hotel”. That is such bad advice, do not do that. Some other YouTubers have also started talking
credit card churning and there is somethings that I don’t necessarily agree with. So, that’s why making these video, I wanna
provide you guys with what I believe is the most effective, proper and effective way of
doing this hobby right. Now, who should not do this? And this is actually even more important than
who should do this. First of all, if you don’t have financial
literacy down, I don’t mean that you need to have a positive net worth. I was a medical student with debt, I had a
negative net worth, but if you don’t understand like credit cards are not free money, if you
don’t understand… if you’re stupid with money, you should not do this. If you carry any statement on your credit
cards, do not do this, if you see credit cards as free money that you for some reason forget
that you need to pay back, then do not do this. If you lack discipline, do not do this and
go and watch my video on self-discipline on the Med School Insiders channel. If you are an impulsive shopper, do not do
this. In short, if you are stupid with money, do
not do this, please. For churning, there’s a couple rules you need
to know; first of all, never spend money that you wouldn’t normally spend. So, anytime you have a credit card bonus,
you will get you know, 50,000, 100,000 points after you meet the minimum spend requirement
or MSR. That’s something like $4,000 over three months. Now, as a medical student, I definitely wasn’t
spending over $1,000 every single month. So, the answer is not to go buy expensive
watches and things that you don’t need, that’s idiotic. So, what I did is, my mom who was living hundreds
of miles away, I said “hey, let me pay your utilities, you pay me cash and that way I
can rack up some spend on this credit card”. There’s also paying your rent with a credit
card, you have to pay a small fee, around 2 to 3% and usually that makes sense if you’re
working towards a minimum spend requirement. Anyways, we’ll go into more details about
that in a future video. In fact, this is gonna be, again, the most
high yield concise effective advice about credit card churning and rewards. So, if you wanna follow along, make sure you’re
subscribed, and make sure you press that ‘Like’ button because it really helps this Youtube
channel and follow along with our Credit Card Churning playlist which I will be updating
in the future weeks. Now, going back to meeting the MSR, You can
also do manufacturing spending, that’s where you essentially buy money orders or gift cards,
pay yourself and then use that to pay the balance. It’s a little more advanced, it’s a little
more risky, I don’t advise it for most people, but anyways, for completeness sake, that’s
there. Rule number two; never carry a statement balance. If you do this, you are doing it so wrong,
you should never pay any interest. I don’t know why people believe that carrying
a balance is good for your credit score, it’s not. Pay off your balance, don’t pay interest,
simple! Number three, don’t do this before you need
to take out a large loan, whether that’s a mortgage, or a car loan or anything like that
because opening up a lot of credit cards will temporarily ding your credit score even though
in the long term it has the potential to increase it. And rule number four, avoid canceling credit
cards. Ideally, you want to downgrade a credit card
that you don’t actually want anymore. A lot of the credit cards I’ve opened, a lot
of them are still open and I pay an annual fee for those cards that are worth it, but
a lot of them aren’t. And for those you – I wanna avoid canceling,
sometimes it’s inevitable but you wanna downgrade when possible, after one year, don’t do it
before one year. Now, the final point is what kind of credit
card enthusiast or “churner” do you want to be? So, first of all, don’t be a champ. So again that means paying your full statement
balance every single month. I do automatic payments. What I recommend is actually using both Mint
and Personal Capital and those track my expenses because if you have 25 credit cards, it’s
hard to check each one every single month, that’s just absurd, right? So, Personal Capital, what I love about them
is every single morning, they send me an e-mail that has all of my credit card transactions
across all my credit card accounts from the previous day. And I can then look at that to make sure there’s
no fraudulent activity, no fees, no – no things like that. I also use Mint and that does a very similar
thing. So I use both Personal Capital is my favorite
and you can sign up using the link I have down in the description below. You also have to be very organized to do this
properly, so you need to keep a spreadsheet. Now, I use Google Sheets, I have one that’s
for my credit cards, I have one for bank accounts and bank account churning that I do. That’s a topic for another video and in there,
I’ll actually leave a template down in the description below so you can click it, make
your own. It’ll save you some time but you’re gonna
put in essentially any credit cards you open, what the minimum spend requirement is, the
date you opened it, the bonus, the bank, all that stuff. And that just helps you long term maximize
the bonuses and essentially maximize your gains from this hobby. Okay, now, there’s three levels of doing this;
Number one, basic. So let’s say you don’t really want to put
in two hours a week for several weeks, then the bare minimum, this is very low-risk, low
reward, is essentially just opening up cards and maximizing their bonus spend. So each credit card has a different bonus,
like the Citi Double Cash has 2% on everything, which is not bad, it’s decent. If you do Chase Freedom, there’s a 5% rotating
category, same with Discover It. So any time you make a purchase you’re getting
5% back. It’s not bad, a lot of people get very excited
about 5%. Again, in the grand scheme of things in this
hobby is actually not very good. It’s better than nothing, but it’s essentially
like the most basic. I wouldn’t even call it churning, it’s like
being – being decent with credit cards. Now the next level up, let’s say you’re moderate
or intermediate, now, what you’re gonna be doing is opening up multiple credit cards
every single year and you’re gonna be focusing on hitting the minimum spend requirement. So, it’s less important now, the 1%, the 2%,
the 3% because if you hit the minimum spend requirement, you spend $2,000 you get $60,000+
points, you’re getting an order of magnitude more on your spend. So, now you’re not getting 5%, now you’re
getting like 50% back essentially on the spend that you’ve done. So this is much higher value and requires
again, a little more work because you gonna be constantly opening up new credit cards,
you need to stay organized, you need to constantly educate yourself about the new offerings,
the new rules, they’re always changing, things like that. Now, advanced, so this is the final level,
this is where I currently operate. You are opening up both personal and business
credit cards several every single year, sometimes several every single month. And now you really don’t care about the percentage
points on each category because at almost any moment, you’re working towards a minimum
spend requirement. So you should always have a new credit card
in your wallet that you’re working towards and you just keep rotating, keep rotating. Now, at this level, you may also get into
manufacturing spend, again it’s higher risk. I don’t advise it for most people, I personally
don’t do it. Anyway, that’s the fundamentals of credit
card churning. Now, beyond credit card churning, and I’ve
been talking about you know, free flights, free hotels things like that, there’s so much
more value. So, you get extended warranty if you make
a purchase of let’s say a laptop or a camera on the right credit card. And that can extend your warranty by sometimes
a couple of years, right? So that’s huge. If there’s any fraudulent activity on a credit
card, you can reverse that and that’s almost never an issue with any of these major credit
card issuers. If you travel a lot, you can get lounge access
and that lounge access can give you free food and like pretty good free food and free alcohol. So there’s a lot of things beyond just the
actual hotels and flights but you get so much value from these free flights and hotels. That’s why I’m emphasizing that. So again, if you found this video helpful,
again, make sure you’re subscribed. Please press that Like button because that
helps us with the algorithm and stay tuned! I’m gonna be updating this playlist in future
parts on which credit cards you should open, more advanced theory, getting into bank account
churning, all those things. So thank you again so much for watching and
I will see you guys in that next one!

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62 thoughts on “Why I Have 30+ Credit Cards [Churning Fundamentals Part 1]

  1. first time hearing about this. great video! definitely will stay tuned for playlist. im going into my first yr pre-med

  2. Does this apply to Debit Cards as well? I can't really fully understand or grasp the difference between the two.

  3. I know you mentioned that you would pay your mothers bill and she gives you cash back. But my question is living independently on your own is credit card churning possible. If so, can you address this in another video?

  4. Isn't a stable income required to open credit cards? Can I open multiple credit cards as a poor undergrad with little income?
    Also, Can you make a video of the credit cards with the best perks haha

  5. Dr. J, this seems like an incredibly important topic for a lot of financially inexperienced students like myself, please keep it going!

  6. Are there any specific cards you would recommend for a medical student with only loans as a financial source, and who has never had a credit card before? Trying to build credit currently in order to get some of the cards with good travel benefits for future interviews.

  7. Please make a video about credit scores! I'm a college student and I'm going to get my first credit card in a few months.

  8. I already have 7credit cards and thinking of canceling 4 of them. What do you think? I don't have any airline credit cards and my husband is MS 2 (starting 2nd year this fall). I would like to save some points for future traveling for his rotations. So since I heard too many credit cards are bad, I was going to cancel 4 of them and make new ones. But I just don't know what to do after watching this video. I might don't have to cancel any of them??

  9. Hi Dr. J, apart from the direction of your videos (best advice going!), what other resources should I use to educate myself on churning i.e. what resources have you used and found reliable?

  10. This video had a Graham Stephan feel to it…especially with the plugs to smash that like button. I like it.

  11. I don't travel much but the free cash is worthwhile to me. I built my emergency fund churning $100-$300 bonus cards. I think im around 25 cards lost count lol

  12. How’d you get approved for credit cards when you were a med student? Did you have income or lied on the apps?

  13. Completely blew my mind. I'm so glad you made this video. Are there a list of credit cards you would recommend for someone like myself that wants to become advanced?

  14. Kind of funny timing. I’ve racked up a little over 150,000 points in the past couple months by opening 3 different cards and putting my med school application fees on them to hit MSR.

  15. How did you open up credit cards with no net income during medical school? I tried opening up a few but keep getting denied because my income is 0 as I am not working during med school.

  16. I enjoyed this vid and learned quite a lot. I would love it if you could do a video about student loans in gradshool, how to be smart about them, how you managed to live off it etc.

  17. i tried to apply for a rewards card last week and got denied instantly despite having a great credit score. i thought it was because im a med student with loans, but if you and other med students were able to do this then clearly i did something wrong in the application…

  18. Hey! Great to meet you at the F1 a few weeks back, hope you enjoyed the rest of your stay in London and us Brits weren't too intimidating! 😂

  19. Churning credit cards only pays off if you are a big spender with a higher income. For the average broke American, churning will not pay off and will only cause them to overspend.

  20. Just finished my residency, wish I had this advice back then. I remember I almost missed an interview because my card got declined at the rental agency. Any ways, subscribed! Good stuff

  21. Also could you make a video on how you were raised and what your childhood was like that shaped your good habits? You seem very efficient, and these are things I’m trying to instill in my son. Thank you!

  22. luxuryhacks at hotmail com is the only company that always delevers, I was to increase my credit scores and pay off my mortgage loan with ease.

  23. Hey Doctor, im kind of slow when it comes learning. I've been put on iep my whole entire life since i was 5. Will this affect me in college and med school? I'm interested in becoming a dentist or plastic surgeon.

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