Skip to content

Retention Offer Before Closing the Credit Card

A Simple Way to Increase the Credit Card Value

Recently, one of my American Express credit cards is due for the annual fee. First, I want to make a simple introduction of this card. This is the American Express Everyday Preferred Card, which is a great choice during the inflation, because you will get these benefits:

  • 3 points per dollar for the first $6000 grocery store spending per year
  • 2 points per dollar for the gas
  • 1 point per dollar everywhere else

If you can use your card 30 times per month, you will get 50% more of your points earned. This will make the earning structure above even better: 4.5 points at grocery store, 3 points for gas, and 1.5 points everything else!!

We have discussed before that how to use American Express points to invest to get more cash flow. If you read it, you will know that 1 point equal 1.1 cents for investment! This means, using this card, for every dollar you spend in the grocery store, you will get 4.5*1.1=4.95 cents cashback, almost 5%!!!

Another sweat thing is that the card now is offering 15000 points if you spend $2000 in the first 6 months after account opening and 0 APR of purchase for 12 months (which means free cash flow for you). So, to hold this card is complete positive for the first year, even with $95 annual fee!

Credit card retention

However, how to offset the annual fee for the second year? You won’t have the welcome bonus to offset it.

But you have another choice, to call the American Express or online chat. You only need to ask 1 question: is there any retention offer in this card to help me keep it for 1 more year?

The retention offer is not guaranteed, but it is no harm to ask. You can ask this offer every 12 months. For me, I got an offer for 15000 points, if I can spend $3000 in 3 months. I take it because I think it make senses for me. If you cannot get an offer and you think the annual fee is too high, you can either downgrade to a non-annual fee version or close it.

By this way, you will get more rewards for a card, even before you close it.

Leave a Reply

Your email address will not be published.