Annual fee due....cancel or downgrade? Newbie needs advice!

Discussion in 'Newbies' started by wanderlust74, Jun 30, 2013.  |  Print Topic

  1. wanderlust74

    wanderlust74 Silver Member

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    Hi, all! Last year I did my first AOR and received the CitiAA, and two SPG Amex (one for my hubby and one for me.) My annual fee will be due in August for all three and I'm torn as to what to do with them. I will NOT pay the AF for any of these cards. A retention bonus is not appealing to me, unless the AF could be waived. So, cancel or downgrade (if possible)?
    Here are my questions:
    1) Will I lose my points if I cancel? (my thought is no, as long as there is earning/spending activity in my rewards accounts).

    2) Are there cards I can downgrade to?

    3) If I downgrade, doesn't this mean I will not be able to churn these cards in a couple of years?
    I would definitely like to churn the CitiAA card, not so much the SPG Amex.
     
  2. Jenny & Curt
    Original Member

    Jenny & Curt Gold Member

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    Is there no retention offer that you would deem equivalent to the AF?
     
  3. druiddation
    Original Member

    druiddation Gold Member

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    You won't lose your points if you cancel.

    For the last few years when I've called to cancel my CitiAA card they have offered to credit the AF if I make 5 purhases. Amex didn't offer me a retention bonus or downgrade option on the SPG cards.
     
  4. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Citi recently offered me an AF waiver for making three (five? I don't even recall) transactions over a certain period. Call and ask.
     
  5. wanderlust74

    wanderlust74 Silver Member

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    It's all about keeping cash in my wallet right now. We've no travel plans in the near or distant future (just got back from a 10 day cruise) so we're sitting tight and saving money rather than collecting points.

    Do I need to wait for the AF to be charged to call and ask for a waiver after purchases? I would be willing to do that to keep the card open and not have a ding on my credit score.
     
  6. druiddation
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    druiddation Gold Member

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    I've never asked for the waiver after purchases, but they have always offered it when I called to cancel the card (usually 1-2 months before the AF was due).
     
  7. wanderlust74

    wanderlust74 Silver Member

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    Ok, thanks. That's what I wasn't sure of....how early I could call before AF was due. It should be charged in August, so I'll go ahead and make that call!
     
  8. gconnery

    gconnery Silver Member

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    I don't think there are any fee-free versions of these cards to downgrade to. As long as they are not your oldest cards, you don't find any retention offer compelling, and you don't need the benefits they offer (free checked bags, earlier boarding, 5 nights stay towards SPG Elite status, etc) then feel free to cancel them.
     
  9. Pizzaman
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    Pizzaman Co-founder

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    There are no fee free versions of the SPG Amex cards.
     

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