Cancel the card or not?

Discussion in 'Newbies' started by traceya2000, Nov 17, 2011.  |  Print Topic

  1. traceya2000

    traceya2000 Active Member

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    After receiving the 75000 bonus miles several months ago I called to cancel my AACitibank card as I do not want to pay the $75 renewal fee for the card. They have offered me 15000 to keep the card after a spend of $5000 in 6 months which represents just 3X the normal miles earned on that $5000 spend. I got the business and personal cards so now have 165,000 miles so this would bring me to 180,000. Is it worth doing do you think?
     
    JohnDeere19 likes this.
  2. cotter77
    Original Member

    cotter77 Silver Member

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    IMO do whatever you can or have to do to keep that acct open....thats what is most important for future CC churn strategy and results.
    call and again and see what they say, tell them the offer you were made on last call, tell them that most important to you is avoiding the fee.
    I called 4 months prior to anniversary and got one of the small retention offers (?3k miles after$500 spend or something?)
    this month the fee hit and I insisted i hate fees, so all they did is downgrade the card to some other crappy card with no annual fee and no credit report inquiry - i will get the new card in the mail in afew weeks when i will put it away in a drawer and let the acct stay open "forever" adding chronicity and unused credit on my credit history. ...actually same thing happened this week with my chase sapphire preferred as well.
     
  3. JohnDeere19
    Original Member

    JohnDeere19 Gold Member

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    If they're giving you 15,000 if you spend $5000 in 6 months, that's in addition to the 5,000 you normally earn so 4x normal earnings. I definitely think $75 for 15,000 miles is worth it if you can 1) hit the spend 2) don't need that spend to hit a bonus on something else. I'd also see if there's anything else they can offer you (maybe including a waive of the annual fee).
     
    arkleseizure likes this.
  4. deant
    Original Member

    deant Milepoint Guide

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    As others have said, IMO, it is well worth the $75 to get 15,000 miles. Pay the fee, make the spend requirement and then cancel the card.
     
  5. daemon14

    daemon14 Gold Member

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    What's the point of cancelling the card if you pay the fee? If you pay the fee, keep it open until it's time for next year's annual fee, then call them up again and see what they say.

    Of course, that advice might change if the new 50K offer is indeed churnable.
     
  6. traceya2000

    traceya2000 Active Member

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    I don't know if the 15000 is in addition to the 5000 spent or if that is factored into the amount but guess I might as well go for it since I'm not currently working on a spend bonus for another card so will be easy to do.
    Thanks for the advice!
     
  7. daemon14

    daemon14 Gold Member

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    It should be a 15K bonus, so $5K = 20K miles.

    You're effectively getting 4x on this once you hit $5,000. $5K is a lot, but comes out to a spend of $833/month over the 6 months. Not bad, although I'd try to use the card on as many 1x purchases where you don't get 2x/3x/5x on other cards to maximize your mileage earnings. After a few months, see how much more you have to spend, then adjust accordingly.
     
  8. mikesteg

    mikesteg Silver Member

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    In the most basic sense, the extra 15k miles are worth $150 even at a low value. I value AA miles at 1.5 cents, which equates to $225. Being that 225 > 75 in most situations, it seems like an easy call.

    As others have said, it really depends on what you're giving up to make the 5k spend. If you have no other spend requirements, may as well go for it. There is nothing to stop you from calling to cancel again at 12 months, even if it's a bluff to see if they'll rescind the fee. There is also nothing to stop you from accepting the offer and just not completing it if something better comes along.
     

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