One of the things our readers often have questions about are credit card retention offers.  A retention offer is when a card issuer offers something of value to you—usually a statement credit, an annual-fee waiver, or a points bonus for a certain amount of spending—if you decide to retain the credit card instead of canceling it. That way you get something that makes the card worth keeping for another year and the bank keeps a customer.  

Credit card retention offers are worth asking about if you’re wondering what to do with a particular card you’ve had for a while and you’re not sure if you want to keep it in the long run.  You usually don’t have a way to check whether there are any retention offers available to you on a certain credit card unless you ask.  So before you jump straight to downgrading or canceling a credit card you might not get much value from anymore, always call or chat with the card issuer to see if you can get a retention offer for your credit card first.  Remember, we don’t want to cancel too many credit cards outright or it can affect our credit scores.

 

How and When to Ask For a Retention Offer

We usually ask about retention offers just before an annual fee is about to be charged to a credit card.  That upcoming annual fee is probably one of the reasons you’re trying to decide what to do with that card anyway, so it’s natural to bring it up as a factor that’s led you to question keeping a card or not.  Technically you can ask for a retention offer any time, not just around the annual-fee posting, but that’s usually the most logical time to ask.

My favorite bank to inquire about retention offers with is American Express. I love that they have a chat feature, so I don’t even have to talk to someone on the phone—I just get online and start a chat.

First, I tell them I am thinking about canceling the card because I’m not getting enough value from it to make it worth paying the annual fee again.  If you’re interested in hearing about retention offers, don’t say you want to cancel the card, or the representative might transfer you straight to their cancellations department!

Sometimes the representative will remind you of all the benefits that come with the card before offering anything if you keep it—but if those benefits alone aren’t enough to make you want to keep it, you can just flat-out ask:  “Are there any retention offers available on my account?”  They will usually give me a retention offer. Sometimes it’s not a good offer, and I will ask if they can do more. At this time, they might increase the offer or not.  I then decide whether to keep the card or ask them to cancel it.

 

 

Sample Script and My Response from American Express

 

Delta SkyMiles® Gold American Express Card

I got this card for my husband and he received a 90,000 SkyMiles welcome offer for meeting the card’s spending requirement. It had an annual fee I didn’t really want to pay for the second year. It also came with a companion pass that I thought I would use but didn’t. When I called them and explained that, they offered me 15,000 Delta miles to try it for another year.

Delta miles are worth about 1.3 cents a mile, so the 15,000 miles would effectively lower the annual fee some. That wasn’t enough for me. They came back with an offer of a $50 statement credit on top of that, and I took it. It would essentially pay for my annual fee, and I could use the companion pass that upcoming year, making it a win-win.

 

 

The Platinum Card® from American Express

This card has a high annual fee, but I think it is totally worth it for the benefits as I am able to take advantage of those. However, the next time my annual fee is due, I will ask for a retention offer. I have heard of people getting up to 50,000 AMEX points as a retention offer. We value American Express Membership Rewards® at 2 cents a point, so that kind of retention offer would more than pay for the annual_fees annual fee. I haven’t asked for one in the past because I just love my card and have no intention of canceling it. Even so, I might as well try to get a retention offer, right?

For rates and fees of The Platinum Card® from American Express, see Rates and Fees; terms apply.

All information about The Platinum Card® from American Express has been collected independently by Travel Mom Squad.  The Platinum Card® from American Express is no longer available through Travel Mom Squad.

 

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Once, Alex contacted Chase and asked to speak with the retention department. She asked if she had any offers available on her Chase Sapphire Preferred® Card account and she did! They offered her a statement credit of $60, which dropped her annual fee down to just $35. (Actually, down to nothing if she used her annual $50 hotel credit and the DoorDash $10 credit)!

 

Bottom Line

No matter what card you have, it makes sense to ask for a retention offer before you pay your next annual fee. All they can say is no, and if they say yes, you may be able to recoup some of your annual fee costs! What retention offers have you been offered?

 

Related Posts

It Can Be Worth It to Pay An Annual Fee

Should I Cancel My Credit Card?

Travel Freely: The Best Tool For Credit Card Organization

 

For rates and fees of The Platinum Card® from American Express, see Rates and Fees; terms apply.