How to use retention offers for extra points and miles
Editor's Note
If the annual fee recently posted on your rewards credit card account once again, you may be considering whether it's a good idea to keep the card in your wallet.
Many cards offer solid annual benefits, such as valuable statement credits and steady rewards rates. However, steep annual fees can make it hard to justify renewing the card year after year.
If you're looking for more value out of a card you already have, you could try to earn a retention offer. This is when the bank offers you a bonus or incentive to renew your credit card for another year. It can be done through an online chat feature with a few select banks, but it typically requires a phone call.
Let's examine how you can use retention offers to top up your points balance and make the most of your decision to renew.
What is a retention offer?
A retention offer is when a bank makes an offer to you, the customer, to retain your business. It could come in a few forms:
- Waive or reduce your annual fee
- Offer you bonus points or miles
- Provide a bonus tied to a spending offer, similar to what you get with a welcome offer on a new credit card
All of these are designed to convince you to keep the credit card open for another year. Banks will expect you to keep your credit card open for another year — until the next annual fee rolls around — if you take one of these offers. You could even forfeit the cash or points received if you don't keep the card open for another year.
Related: How to waive a credit card annual fee
How to get a retention offer
Some banks require you to call and speak with a representative, while others will provide retention offers through an online chat function.
A simple mention that you'd consider closing or downgrading your current card could prompt a representative to provide you with a retention offer. However, each issuer handles retention offers differently, so remain flexible.
The reasons why you're considering closing your card account don't have to be complicated. Here are a pair of examples:
- "I don't use it much anymore."
- "I don't think the value I get from the card matches the annual fee."
And, the best time for a retention call is when the annual fee has just been posted to your account.
Related: Important dates to know for your credit cards
How to decide if you'll accept the retention offer
Before calling, consider these items:
- TPG's latest points valuations to see what points are worth on that card
- How much you've spent on the card in the last year
- What you will and won't accept in terms of value
Now, you're ready to call. If they give you an offer, do some quick math on it. Does the offer have a spending requirement? What would you get if you put that spending on a different credit card?
Also, consider your overall credit card strategy. Do you need to close this card to make space for another, or is the offer good enough to keep it for another year? If not, consider whether you can downgrade your card to something with no fee to preserve your credit history.
Related: How do credit scores work?
Sample retention offers
Multiple TPG staffers have recently received retention offers for their cards.
Product manager Sebastian Alegria contacted American Express by phone to discuss his American Express® Gold Card. Alegria told an agent about how he isn't able to leverage some of the card's credits as much as he'd like, and he said he was transferred multiple times before receiving two retention offers to choose between:
- Earn 15,000 American Express Membership Rewards points after spending $1,500 in the next three months after accepting the offer.
- Earn a $125 statement credit after spending $1,500 in the next three months after accepting the offer.
Senior credit card editor Giselle Gomez recently received a retention offer on The Platinum Card® from American Express to earn 30,000 bonus points after spending $3,000 across three months.
Credit card writer Danyal Ahmed has received multiple retention offers recently:
- Amex Platinum: Earn 50,000 Membership Rewards points (without a spending requirement).
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard®: Earn 7,500 American Airlines AAdvantage miles after spending $3,000 in three months.
- Citi Strata Premier® Card : Earn 10,000 Citi ThankYou Rewards points after spending $3,000 in three months.
Various factors are involved when determining your retention offer, such as how and when you contact the bank. However, any offer is worth more than nothing.
Related: How can I get a higher, targeted credit card introductory bonus?
Bottom line
Reaching out to a bank for a retention offer can prove worthwhile if you're looking to earn a chunk of points or miles after your annual fee posts.
It's not a guarantee you'll receive one — and value can vary — but it never hurts to see what you could earn for keeping a card in your wallet.
Related: Ways to meet the spending requirements and earn the bonus on a new card