Canceled Sapphire Card--But Rep Said We Monitor ???

Discussion in 'General Discussion | Miles/Points' started by mrx900, Feb 18, 2012.  |  Print Topic

  1. mrx900
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    mrx900 Silver Member

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    Canceled my wifes Sapphire card --didn't get a retention bonus (like I did)...and the rep said "we do monitor peoples accounts who sign up just for the bonus"......is this a real threat ?

    I canceled mine when the annual fee was due and I had some leverage I suppose.....but my wifes annual fee was up and she paid the bill.....perhaps since i had no bargaining chips, no retention bonus offered. Should we be worried now for further promotions?
     
  2. Jimgotkp
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    Jimgotkp Gold Member

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    Chase can blacklist you from future credit cards if you have a history in doing so and cancelling them immediately.
     
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  3. mrx900
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    mrx900 Silver Member

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    what is 'immediately' termed here? She had the card for 12 mths......
     
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  4. druiddation
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    druiddation Gold Member

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    What did they give you as a retention bonus?
     
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  5. mrx900
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    mrx900 Silver Member

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    2500 points......which I thought was better than nothing. In addition to the 7500 I earned from the 7% bonus.
     
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  6. wombat18
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    wombat18 Silver Member

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    Remember you and your wife are free not to have a Chase credit card. Perish the thought of all the miles lost, but think of the lower annual fees and other benefits you could be getting for your credit needs.
     
  7. jbcarioca
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    jbcarioca Gold Member

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    Almost all issuers are tightening rules on almost everything because new capital adequacy rules make them allocate more capital to credit cards and because they are subject to more restrictions in how to apply interest and fees. Not long ago inactivity was not a big deal, now it is. The odd late payment was not important, now it is. Evidence of churn now is looks askance more than it was even a few months ago.
    Notwithstanding the advocates of churn, the days are numbered. Smart issuers now will cancel and blacklist if they lose money on a promotional offer because somebody games it too closely.
    Watch in the coming months and watch things tighten even more.
    These are my opinions, not facts. YMMV.
     
  8. miles and smiles
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    miles and smiles Gold Member

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    It is my experience with Chase that if you get their cards just for the bonus (i.e. use it the minimum and cancel before you pay an annual fee) then they are more likely to deny your applications in the future.
    I have decided only to apply for cards that I will keep long-term, either because they have no annual fee or there are ongoing benefits.
    YMMV.
     
  9. MSPeconomist
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    MSPeconomist Gold Member

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    Me too, and I've never had a desire for excess credit cards either.
     
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  10. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Are we allowed to admit that here?
     
  11. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    Seems to me a case of some folks killing their golden goose (or is it someone else's golden goose?)

    I never really understood why, say, Citi was handing out points with both hands to people who had had the same card many times before. Possible explanations I could come up with were that (a) it wasn't worth their time to check for this as the number of people doing it was small and (b) someone was incentivized based on new account sign-up and not overall profitability of a particular credit card or the whole credit card unit.
     
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  12. ArizonaGuy
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    ArizonaGuy Silver Member

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    I believe the customer based who "churned" repeatedly was much smaller a decade ago. There weren't a bunch of travel blogs that come up in the top of search results that flog credit cards. There weren't websites dedicated to nothing but credit card sign-up links. Combine the increased number of people doing the bare minimum for bonuses along with the added financial regulation plus the ever increasing complexity of data mining and you get what we're speculating: A deeper scrutinizing by the banks of how they dole out these mega bonuses. They'll never go away, in my opinion, but rather will be targeted more and more as we're beginning to see.

    Just my humble opinion.

    At the same time, the airlines and the banks created the situation they're in so I have no guilt about churning myself and have been doing it for about 8 years. (I once had 6 active US Airways cards, have had over a dozen total, all got the then-current 25K sign-up bonuses.) The banks bail out airlines and buy these miles in bulk. The banks then create these offers and shovel those miles into our mileage accounts with almost no required return. (Remember when almost every bonus was "upon first use" and not based on minimum spend - how many of us charged a stamp or pack of gum and then put the card in a drawer?) Anyway, the airlines got cash, the banks got new customers, the customers got points or miles. What did they expect customers to do? All contractual obligations were met. I have no moral or ethical obligation to use a charge/credit card. Please.
     
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  13. Scottrick
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    Scottrick Gold Member

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    I use all my Chase cards a couple times a month beyond meeting the sign up bonus. I've also tried to pick ones that I actually want to keep.

    When I do cancel, I make it clear to the reps why I think they have an uncompetitive product. I also tell them that I plan to shift that spending to another one of their cards. Usually it's not a problem with Chase but a problem with one of their cards having worse benefits than another.
     
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  14. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Credit card companies are more aware of credit card churners. There is no question they have existed ever since they started offering sign up bonuses but my guess is that the percentage of cardholders (albeit temporarily) has increased. Many card companies are adding language (like first time applicants) to minimize this. It'll be interesting to see how they plan to further limit this in the future on such mass market products. You could say that they already are by only approving those with sufficiently high credit scores and low enough levels of open credit lines.
     
  15. MLW20
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    MLW20 Gold Member

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    I see no moral dilemma in churning credit cards. If the companies weren't make money from these promos I'm pretty sure they would stop offering them.

    I've been churning AA cards for around 10 years and must've had 20+ cards over the years. I remember when Citi upped the offer from 25K to a 30K bonus and it was a big deal. It's amazing to think of how much the offers have increased over the past 2-3 years.

    I'd love to know what kind of profit Chase has been making since upping their credit card offers.
     
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