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Originally Posted by DatSOOKin
I'm guessing there is some sort of penalty in place for this (like maybe a credit score hit?), but what's stopping somebody from signing up for all these different credit cards to get the bonus ~$100 gift cards, and then just cancelling or not actively using the account?
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Nothing.
It's called churning. They're hoping that people that do this is in the minority, and the vast majority of people are going to be using their cards.
It kind of works - Like the double cashback promo for 3 months on my costco card means that I've put about $2000 a month on it for 3 months that I wouldn't have in the first place, and it's become a go-to card. However, I applied for both a scotiabank momentum and a scotiabank amex and just took the $100 gift card and canceled the cards without using it.
You are right that it may affect your credit score, but if you have the income to get these type of cards (the ones with 60-70k minimums), it's not going to affect you enough to really matter.