churning caution?

Discussion in 'Other Credit Card Programs' started by alohastephen, Dec 15, 2011.  |  Print Topic

  1. alohastephen

    alohastephen Gold Member

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  2. MLW20
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    MLW20 Gold Member

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    that totally sucks... I have tried to stay away from signing up for some pretty good Chase sign up offers over the last few months due to fear of something like that happening...
     
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  3. TAHKUCT
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    TAHKUCT Gold Member

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    Thanks for sharing. Amex has been doing Financial Reviews for the past several years and closing accounts. Not surprised Chase is doing this. They are there to make money. I am glad we were able to milk the system that long.
     
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  4. Sweet Willie
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    Sweet Willie Gold Member

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    Perhaps the system could have been milked longer if the national media wasn't allowed into the recent Chicago Seminar Do where certain folks were all too happy (my opinion) to talk about how they were/are milking the system.

    Everyone knows the word will get out sooner than later but going on TV was a bad move IMO.
     
  5. iolaire
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    iolaire Gold Member

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    I think Rick’s point about you need to make Chase some money is VERY valid. I churned a few Continental cards little spend, but once Chase gave me 100k UR points for the Sapphire, I felt it was important to use that card for some time, due to their “goodwill” of giving me $1,000 to open the card. You have to give them a little something back.
     
  6. TAHKUCT
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    TAHKUCT Gold Member

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    Was not aware of this. Did not attend Chicago do, but do agree the more people are aware on how to milk the system the sooner that loophole will be patched.
     
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  7. TAHKUCT
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    TAHKUCT Gold Member

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    But Sapphire has good benefits including transfer to CO and 2 points per dollar spent on certain categories plus no foreign transaction fee. I do use that card frequently now.
     
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  8. Scottrick
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    Scottrick Gold Member

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    I try to make sure I have a reason to keep at least half of the cards I sign up for. Putting spend on a card just so you don't annoy a bank isn't going to make you very happy. The banks will be satisfied that you want to use their card, even if you don't devote all your spend to it. UA Select Visa has 3X miles + EQM on UA purchases. Hyatt Visa has Plat status and a free night that is worth the annual fee. My CO OnePass MasterCard will go in the dustbin because it's almost worthless if you already have any kind of status, but it's not my fault United is dumbing down its lower elites, and Chase will hear about that when I close it. I had reasons to choose the Hyatt card during my last application cycle instead of the UR card, but I'm sure once I get it I will be able to put it to good use for a lot of everyday spend because of the UR points' flexibility.
     
  9. thegrailer
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    thegrailer Silver Member

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    Key point. Use the damned cards. Every purchase makes the CC company money - but don't just buy GCs. And pay the renewal fee at least once. Is the SPG card and the 1:1.25 conversion along with the nights towards status worth the cost - yes. Sapphire/Amex MR/etc - probably worth it for a year or 2. If you play the game, play it smartly. Scottrick above looks like he is doing just that. Tell Chase why you are canceling UA/CO - because the benefits aren't useful if one already has status. Amex MR could be because of the BA or AC changes make it too expensive to redeem. Hyatt or any other hotel because your travel has changed and you are no longer gong to places where there are Hyatts [list the places]. And on and on.

    Cheers -
     
  10. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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  11. Scottrick
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    Scottrick Gold Member

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    More and more sites like that these days, even the ones that otherwise have useful information. Pity.
     
  12. iolaire
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    iolaire Gold Member

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    I've not looked it up recently but there is a good chance that they (blogs pushing credit cards) earn from $20-$50+ per sign up on those affiliate offers. You cannot fault them for trying to make some money on their sites - as long as they are not pushing users to bad offers.

    I think Rick is fairly good about mentioning better offers when they are available. But still sometimes I wonder if the payout on the Amex Platinum card (with $450 annual fee + good benefits) is not the reason why everyone hypes it up so much.

    This site has the commissions schedule - $40 and up to $180 per card:
    http://www.credit-land.com/1003/1003_page_12779_324069.php
     
  13. NYCAdventurer

    NYCAdventurer Gold Member

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    Had 3 active Chase cards and just canceled 1. On the fence about applying for the Hyatt card. Did just put a $1000 charge on the sapphire card to show some spend. Any thoughts?
    Add: Did move the credit from the canceled card to Sapphire.
     
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  14. Scottrick
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    Scottrick Gold Member

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    Yes, there is a lot of money to be made, potentially. I think at some point you have to say, "I have three or more graphic ads on my site and a separate page full of referral links for my readers to find if they are interested. Do I really need to mention one or more cards in every post, as well?"

    I didn't stop using Yahoo because Google's search results were better. I stopped using Yahoo because the page was full of ads. I remember when Yahoo first started using graphic ads, then when it started using video ads. When it had a graphic ad that moved around the page and covered its logo for the first time (we're all used to those now, aren't we?) I recall it made the front page of my newspaper, which claimed Yahoo was selling its soul.
     
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  15. FlyingBear
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    FlyingBear Silver Member

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    I don't see how that's related. As mentioned here already, Amex has been doing this for several years, I got FR'd back in mid-2007. Back then the bonuses started decreasing as well. This is just Chase figuring out that some customers are simply not that profitable and proactively figuring out a way to get rid of them the way Amex did.
     
  16. Sweet Willie
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    Sweet Willie Gold Member

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    direct correlation, perhaps not.

    However, spreading how to milk the system on 'specialized' travel boards is one thing, spreading the the word on national TV which is much more accessible to shareholders & board members of Chase & other financial institutions who have an interest in putting a kabash on any milking, is not wise.
     
  17. Scottrick
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    Scottrick Gold Member

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    I'm sure there are analysts who figure out what is profitable. Perhaps it doesn't make a difference whether it's televised or not. However, the higher-ups might be watching TV at night and start wondering why this is being allowed to continue. I would guess these executives are not reading or perhaps even aware of The Points Guy or Frugal Travel Guy, which is why it was allowed to slide before. With or without justification, it can still be shut down as a result of excessive publicity.
     
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  18. MLW20
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    MLW20 Gold Member

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    If you are pushing the new Chase Ink Bold, Sapphire or Amex cards, the commission is give or take $160! I have no problem with the commission they receive considering that is how I am finding out about many of these deals.

    What I don't like is when some blogs push sub-par offers just to make the commission.

    In my opinion, Rick has always let his readers know NOT to use his links when there is a better offer to be had. For that I find him to be an extremely trustworthy source for CC signups.
     
  19. hulagrrl210
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    hulagrrl210 Gold Member

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    I completely agree and I have actually ended up keeping a few cards over the years that I intended to churn just because they were good cards to have with nice benefits, especially from Chase. I am usually careful with them, however, and I don't think that at any time I've had more than 3 accounts open. There are a few cards/banks that I would have no problem churning repeatedly without feeling bad (or even caring if the accounts get closed), just because their customer service over the years has been so horrendous that I want revenge in any way possible, but mostly in the form of free miles that they pay for.
     
  20. gwhit21

    gwhit21 Silver Member

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    Using each of my Chase cards has saved me many times when applying for a new Chase card. They are more willing to use my existing credit and not close one of my cards if I am using each card. All that to say, Rick made a great point about actually using the cards past the spend.
     
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  21. HaveMilesWillTravel
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    HaveMilesWillTravel Gold Member

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    I am so tired of hearing every day 15 times how great the Sapphire Preferred card is that when it was finally my turn to apply for one, I ended up going straight to Chase, skipping any affiliate links. I couldn't tell where I first heard about it (probably here on MP) and I am not interested in encouraging the current credit card blogging frenzy any further by making it financially worthwhile...

    I should just sign up for affiliate links myself, I guess ... :D
     
  22. MLW20
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    MLW20 Gold Member

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    Too Funny!
     
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  23. airshadow
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    airshadow Gold Member

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    While I certainly appreciate their efforts (and understand the value of credit cards in our game), I've started calling them "cloggers" - credit card bloggers. ;)
     
  24. jwsky
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    jwsky Silver Member

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    Wow! No wonder they are always pushing those business cards so hard.
     
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  25. HaveMilesWillTravel
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    Much more lucrative to push cards than to actually sign up for them, eh? ;)
     
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