Is it Worth Paying the Fee to Keep my SPG Card

Discussion in 'General Discussion | Miles/Points' started by MLW20, Jul 18, 2011.  |  Print Topic

  1. MLW20
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    MLW20 Gold Member

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    I just cancelled my SPG personal card due to the annual fee. I am pretty sure the fee should be coming up soon for my business card.

    I'd like to keep a SPG card... I am curious to hear people's thoughts on if it is worth paying to keep my SPG biz card???
     
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  2. JohnDeere19
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    JohnDeere19 Gold Member

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    Do you spend up to your credit limit on both?
     
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  3. Quasiconvexity
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    Quasiconvexity Gold Member

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    Have you tried contacting Amex to see if they would give you a sweetener to hold on to the card? People have reported getting upto 5K starpoints to not cancel (which would more than make up for the annual fee IMO).
     
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  4. MLW20
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    MLW20 Gold Member

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    I was planning to ask for something to keep my biz card when the time came. 5000 miles would be a nice incentive to keep it.
     
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  5. MLW20
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    MLW20 Gold Member

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    No I do not
     
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  6. JohnDeere19
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    JohnDeere19 Gold Member

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    The might be worthwhile to consider getting rid of 1. I'd say call about some sort of retention bonus then cancel if you don't find it worth it.
     
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  7. 7Continents
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    7Continents Silver Member

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    What do you get out of it? Enough so that your redemptions are more than what you would have spent out of your own pocket? That's the way I look at it. If I would have spent $1000 on a hotel stay or airfare and instead used points, then I more than covered my fee.
     
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  8. Steven Schwartz
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    Steven Schwartz Gold Member

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    Well you probably don't need two if you don't run into a credit limit issue. As the above poster said, only you can decide if it works for you.
     
  9. MLW20
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    MLW20 Gold Member

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    I already cancelled one of the cards and was offered nothing to keep it. When my biz card renewal fee comes up soon I plan to ask for a bonus to keep the card. I'd like to keep a SPG card active but undecided yet if I want to pay the $65 fee...
     
  10. Gary Steiger
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    Gary Steiger Silver Member

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    I simply switch back and forth between the personal and business cards. Cancel one, then apply for another. I always get a free year, If I wait about 10 months between cancelling one and applying for the other, I usually get the signup bonus, too.

    For the uninitiated, the Starwood card is considered by most to be the best for collecting airline miles via actually spending, as it converts 20,000 Starpoints to 25,000 miles on many airlines. You may read about both on my wesbsite below on the Credit Cards > Free Cards page.
     
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  11. MLW20
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    MLW20 Gold Member

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    Good info! I was wondering if the Starwood card could be churned. If there is a nice offer in 10 months from now, i'll be applying for the personal card again!
     
  12. LizzyDragon84
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    LizzyDragon84 Gold Member

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    Hmmm, that is interesting. I like the card, even with the fee, because of the flexibility of the points. I'm a leisure traveler and so I'm not really committed to one program.
     
  13. RestlessLocationSyndrome
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    RestlessLocationSyndrome Silver Member

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    Although the SPG card is nice, if your spend isn't high enough annually, it often won't make sense to keep it vs. some other no-fee card... there are quite a few good ones out there.
     
  14. spesalvi

    spesalvi Gold Member

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    I called twice (a month apart) to cancel my card since my first yr was coming to an end and both times I wasn't offered anything.
    First time, they try to get me down to a no fee Amex card, I declined and then they say I have a month to think about it and then the second time it happen all so fast, they just went ahead and closed it.
     
  15. wheat27
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    wheat27 Silver Member

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    SPG is actually a secondary hotel program for me so I only concentrate spending on the card when I'm working towards a spending bonus. As such it's not allways worth it for me to keep the card. I'm more of a get the card, charge enough to get the bonus and then cancel the card after the first year. I do this with the business and personal cards and once eligible for the bonus again consider reapplying.
     
  16. K F

    K F Silver Member

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    I just had my cards come up for annual fees and called to cancel both, but planning to keep at least one if there was a good retention bonus offer. I was able to negotiate the business card to $30 and couldn't negotiate the personal card, but they gave me $30 off that card so my total for both cards were $65. They're both my go-to cards right now. I hope this helps!
     
  17. onlybeef42
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    onlybeef42 Silver Member

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  18. okrogius

    okrogius Silver Member

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    Credit limit should never be a consideration regarding keeping a card or not. If anything, if you actually do reach it, you really should have it raised.
     
  19. JohnDeere19
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    JohnDeere19 Gold Member

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    I disagree completely. If I have 2 credit cards each with $15k credit limit and carry $3k balance on them, then I'm utilizing 10%...if I get rid of one of those cards, it increases to 20%. If one card is 25k and one is 5k, it makes cancelling the 5k limit card much easier.
     
  20. KyRoamer
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    KyRoamer Gold Member

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    If a Starwood point is worth 2 cents, you would need to spend $3,250 to cover the $65 cost. If valued at less the spend would need to be more. i usually get at least 3 cents in value per point. Next week I am doing two days in a $350 + tax per day hotel room for 12,000 points per day. That is saving me $700+ and worth the 3 cents.

    So if you spend over $3,250 you could say the card is free. Flawed logic though as you'd likely put the charges elsewhere and get miles or points. Since I value other points at between 1 and 1.5 cents each, I figure an annual spent of around $8,000 is needed.

    But then there are the home runs -- a $500 hotel room in Venice for $90 and 4,000 points. That is over 10 cents per point!!!

    I love my Starwood card and don't care what it costs.
     
  21. okrogius

    okrogius Silver Member

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    If your utilization ratio is that negatively impacted by a single card, chances are you have a very small number of cards. In which case your concern is building credit and getting more cards as a primary concern.

    As far as cancelling cards with annual fees, the primary consideration should always be the value of the benefits/rewards versus the cost of the card assuming you have a well balanced set of cards. (And depending on the issuer, there's also the possibility of converting to a fee-free card for sake of retaining the account age and extra limit.)
     
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