Credit Card Myths That Don't Actually Work

Canceling Cards Too Soon (to Avoid Fees)

‍

Some people sign up for a rewards card, earn the welcome bonus, then cancel before the annual fee hits. The idea is to get the bonus "for free." In reality, this can cost you in several ways. If you close a card before using the points or miles, you'll likely forfeit those rewards. Also, issuers don't appreciate "hit-and-run" customers. Canceling a card immediately after earning the bonus is a definite no-no, according to credit experts.

‍

Card issuers may ban you from future sign-up offers or even claw back the bonus you received. In fact, you should generally keep a new card open for at least a year before considering cancellation. If the annual fee bothers you, a smarter move is to downgrade to a no-fee card with the same issuer after a year, rather than cancel outright.

Canceling and Reapplying for the Same Card (Bonus Cycling)

‍

In the past, some cardholders would cancel a card and then reapply later to get a new sign-up bonus. Today, issuers have strict rules to prevent this. For example, Chase won't award a bonus on many cards if you've received that card's bonus within the last 24–48 months (and their 5/24 rule limits how many cards you can open).

‍

American Express has a "once per lifetime" policy on bonuses for each of its cards. These guardrails mean you usually can't get a second bonus on the same card nowadays. Even if you managed to get approved again, the issuer is likely to deny the bonus or decline your application altogether. Besides, repeatedly opening/closing cards can ding your credit score with hard inquiries and a shortened average account age. In short, this strategy isn't viable anymore – banks have shut it down.

Buying and Returning Items to Earn Points

‍

This trick involves purchasing expensive products on your card (to earn rewards or hit a bonus threshold) and then returning them for a refund – hoping to keep the points. Unfortunately, you won't get to keep those rewards. Card issuers will subtract any points, miles, or cash back you earned once the purchase is refunded.

‍

You might not see the deduction instantly, but by the next statement the rewards will disappear. Beyond not working, this behavior can raise red flags. Excessive return/refund activity could get you flagged or even banned by the card issuer or the retailer. Merchants and banks monitor for abuse. The bottom line: you can't outsmart the system by buying stuff just to rack up points and then returning it – they will take the points back.

Buying Prepaid or Gift Cards with Your Credit Card

‍

Another strategy some try is using a credit card to buy prepaid cards or gift cards (which can then be used to pay bills like rent or utilities that normally don't accept credit). The promise: you earn rewards on the purchase of the prepaid card. The reality: card issuers usually treat prepaid card purchases as cash advances. This means no rewards, and you'll incur cash advance fees and interest immediately – a very costly trade-off.

‍

Even if your issuer doesn't code it as a cash advance, many retailers have stopped allowing credit card payments for prepaid cards (for example, some stores now insist on cash only for Visa gift cards). There are third-party services (like Plastiq) that let you pay bills with a credit card by essentially buying a money order, but their fees often outweigh any rewards earned. In short, you won't come out ahead after the fees. Artificial spending schemes like this are largely dead ends today.

Paying Friends or Family with a Credit Card

‍

Apps like Venmo, PayPal, or Cash App make it easy to send money to friends. You might think, "Why not fund those payments with my credit card and earn points on rent or splitting dinner?" The problem: these services charge about a 3% fee when you use a credit card to send money. Typically, your credit card rewards equal 1%–2% back, so the fees outweigh the rewards every time. You're essentially paying more in fees than you'd earn in points – a losing proposition.

‍

(One exception: certain card programs have no-fee person-to-person payment features, like Amex Send, but they deliberately give 0 rewards on those transactions.) Unless your card has some unique perk that covers PayPal/Venmo fees (rare), paying people with a credit card is not a profitable strategy. It's cheaper to use a debit card or bank transfer (or better yet, have your friend cover the next meal!).

The "15/3" Credit Score Trick

‍

The "15/3 trick" went viral on social media as a way to boost your credit score by making two payments each month – one 15 days before your due date and one 3 days before. Proponents claim this double-payment trick magically adds 100+ points to your score. It doesn't. Credit bureaus don't reward extra payments in the same month; as long as you pay by the due date, it counts as an on-time payment (you don't get "bonus" credit for paying twice).

‍

There is a tiny grain of truth: paying down your balance earlier could lead to a lower statement balance reported to bureaus, potentially improving your utilization ratio slightly. But there's nothing special about the 15 and 3-day timing – paying once, before the statement closes, achieves the same effect. And any utilization benefit is temporary and minor unless you were regularly maxing out your card.

‍

In short, the 15/3 strategy isn't a magic credit score booster. You're better off just paying your balance in full each month by the due date (or making an extra mid-cycle payment if you need to keep utilization low).

Better Ways to Maximize Your Credit Cards

‍

By now it's clear: trying to exploit the system often backfires. So what does work? Here are some legit, tried-and-true strategies to get more value from your credit cards without the headaches:

‍

• Leverage sign-up bonuses responsibly: Absolutely snag those generous welcome bonuses – just don't open cards you can't keep long-term. Choose a card with a bonus you can comfortably earn (meet the spending requirement), and intend to keep the card for a while if it provides ongoing value.

• Pick cards that match your spending: The best way to earn rewards is through your everyday spending – so use cards that reward the categories where you spend most.

• Stack cards for maximum rewards: Consider holding multiple cards that complement each other. Many pros use a multi-card strategy (like the Chase "trifecta") to cover different bonus categories.

• Take advantage of authorized users or partners: If you have a spouse or trusted partner, you can each get a great card and refer one another for bonuses (many issuers offer referral bonus points). You might also add each other as authorized users to help meet spending requirements or boost each other's credit (just use this responsibly).

• Use your card perks & offers: This isn't a trick – it's just smart usage. Many cards offer built-in perks like travel credits, purchase protection, price matching, or rotating cashback offers. Utilize these benefits!

FAQ

‍

Do credit card tricks really work?

‍

No, most so-called credit card tricks have been debunked by experts or shut down by card issuers. Anything that sounds too good to be true usually is. It's safer to stick with proven credit habits and legitimate rewards programs.

‍

Should I cancel a credit card right after getting the bonus?

‍

Absolutely not. Canceling immediately after earning a sign-up bonus can result in losing unredeemed points and getting banned from future bonuses. Keep the card for at least a year, then consider downgrading to a no-fee version if needed.

‍

Can I keep rewards if I return purchased items?

‍

No. Card issuers will claw back any points or cash back earned on returned purchases. The rewards will be deducted from your account, and repeated attempts can get you flagged by the issuer.

‍

Does the 15/3 payment trick boost credit scores?

‍

No. Making two payments per month doesn't count as two on-time payments to credit bureaus. While paying early might slightly lower your reported balance, there's nothing special about the 15/3 timing – paying once before your statement closes has the same effect.

Conclusion

‍

When it comes to credit cards, if a trick sounds too good to be true, it probably is. Credit card companies have spent years refining their terms to prevent abuse, and consumer finance experts have debunked many of these viral "shortcuts." Rather than chasing risky loopholes that don't actually work, focus on building solid credit habits and using your cards wisely.

‍

Choose cards that fit your lifestyle, pay your bills on time, and take advantage of legitimate rewards and perks. In the end, the real secret to maximizing credit cards is simply to use them smartly – no gimmicks required. And if you need a little help, a tool like Kudos can ensure you're always getting the most out of your cards, the right way.