How soon to cancel a credit card after signup bonus.

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
rgs92
Posts: 1445
Joined: Mon Mar 02, 2009 8:00 pm

How soon to cancel a credit card after signup bonus.

Post by rgs92 » Wed Oct 18, 2017 1:08 pm

I got a credit card with $95 annual fee (and had to pay it right away) but got a signup point bonus that gives me $500 (from 50,000 points).
(I earned it already in the first billing cycle by charging $3000).

So after I redeem the bonus, can I just cancel the card within a year to avoid more annual fees? Thanks.
I am having trouble plowing through the fine print legalese, and I don't see anything but worry that there is something hidden.
I also am concerned (a bit) about getting my credit rating dinged.

meens888
Posts: 4
Joined: Wed Aug 09, 2017 7:30 pm

Re: How soon to cancel a credit card after signup bonus.

Post by meens888 » Wed Oct 18, 2017 1:28 pm

I usually wait until the month or two before a new fee gets charged before cancelling it. I also suggest calling them and asking for a product change to a no fee card instead. Usually this is easily done, only results in a soft pull on your credit, and keeps your credit score building.

User avatar
flamesabers
Posts: 1479
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: How soon to cancel a credit card after signup bonus.

Post by flamesabers » Wed Oct 18, 2017 1:32 pm

Can you downgrade the credit card to something that doesn't have an annual fee?

If you close the account now, it probably won't have much impact on your credit score unless this card's credit is a sizable amount of your total credit. Even if you only have a small drop in your credit score, there is always the risk you might get blacklisted by the issuer and/or other banks. (Banks aren't keen on issuing credit to bonus churners).

User avatar
jeffyscott
Posts: 6578
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: How soon to cancel a credit card after signup bonus.

Post by jeffyscott » Wed Oct 18, 2017 5:43 pm

In my experience you can even wait until you get the bill with the fee to cancel and you won't have to pay the fee. Most cards will notify you a month or more before the bill with the fee is coming. I usually just wait for that and convert or cancel the card then. One Amex card never notified my and I canceled when the bill came with the fee. I think they had a 30 day grace period or something to cancel and waive the fee.

When I was new to the game, I was more nervous about getting hit with a fee and would cancel very early and/or set calendar reminders. Now I don't do anything, I just wait for the notification or bill from card company, and it has not been a problem.

Caveat - recent offer from Amex (Delta gold card) included this:
If we in our sole discretion determine that you have engaged in abuse, misuse, or gaming in connection with the welcome bonus offer in any way or that you intend to do so (for example, if you applied for one or more cards to obtain a welcome bonus offer(s) that we did not intend for you; if you cancel or downgrade your account within 12 months after acquiring it; or if you cancel or return purchases you made to meet the Threshold Amount), we may not credit bonus miles to your account. We may also cancel this Card account and other Card accounts you may have with us.
press on, regardless - John C. Bogle

peterpeter
Posts: 17
Joined: Thu May 10, 2012 1:31 am

Re: How soon to cancel a credit card after signup bonus.

Post by peterpeter » Wed Oct 18, 2017 6:45 pm

Sounds like Chase Sapphire preferred. If so, you can downgrade to the Chase freedom which is free. That's what I did.

JBTX
Posts: 1534
Joined: Wed Jul 26, 2017 12:46 pm

Re: How soon to cancel a credit card after signup bonus.

Post by JBTX » Wed Oct 18, 2017 7:46 pm

jeffyscott wrote:
Wed Oct 18, 2017 5:43 pm
In my experience you can even wait until you get the bill with the fee to cancel and you won't have to pay the fee. Most cards will notify you a month or more before the bill with the fee is coming. I usually just wait for that and convert or cancel the card then. One Amex card never notified my and I canceled when the bill came with the fee. I think they had a 30 day grace period or something to cancel and waive the fee.

When I was new to the game, I was more nervous about getting hit with a fee and would cancel very early and/or set calendar reminders. Now I don't do anything, I just wait for the notification or bill from card company, and it has not been a problem.

Caveat - recent offer from Amex (Delta gold card) included this:
If we in our sole discretion determine that you have engaged in abuse, misuse, or gaming in connection with the welcome bonus offer in any way or that you intend to do so (for example, if you applied for one or more cards to obtain a welcome bonus offer(s) that we did not intend for you; if you cancel or downgrade your account within 12 months after acquiring it; or if you cancel or return purchases you made to meet the Threshold Amount), we may not credit bonus miles to your account. We may also cancel this Card account and other Card accounts you may have with us.
To take it further, often I won't even follow up until I am charged the fee. When I see it come through on quicken, I'll call and see if I can get it waived. Sometimes they waive it if you spend a small amount of the next month. If they don't, you may have the option to downgrade if you so choose, or else if you cancel I think you have 30 days, so you can have the entire fee amount refunded. I have done this a couple of times.

Speaking of chase, I recently got rejected for one of their cards because I had 5 cards opened in two years.

solobuildingblogs
Posts: 9
Joined: Tue Aug 22, 2017 10:29 pm
Contact:

Re: How soon to cancel a credit card after signup bonus.

Post by solobuildingblogs » Thu Oct 19, 2017 1:46 am

If you repeatedly cancel after a few months when your signup bonus hits you can get blackballed by the bank and they might deny future applications.

A better strategy is to wait until the annual fee hits. Some banks will give you a bonus number of points, sometimes requiring a minimum spend, to keep the account open, or waive the annual fee or even both. Or you can downgrade to a no fee card and decrease the credit limit if you want to keep card active for your credit report and/or intermittent charge extending life of points about to expire.

adaml30
Posts: 18
Joined: Sat Jan 14, 2017 9:48 am

Re: How soon to cancel a credit card after signup bonus.

Post by adaml30 » Thu Oct 19, 2017 9:49 am

Speaking of Chase Saphire... I hope I am not hijacking the thread, but my wife has CSR, and I am thinking about getting the Preferred. I would get the 50k points after 4K in 3 months. Could I then transfer the points to her account meaning we would get the 1.5 on travel as opposed to the 1.25 I would get on preferred? I currently transfer the points from our Chase Freedom to her CSR. I would then cancel my preferred close to annual fee date to avoid paying that, like you have suggested. Thanks!!

Tallis
Posts: 39
Joined: Tue Mar 29, 2016 7:23 pm

Re: How soon to cancel a credit card after signup bonus.

Post by Tallis » Thu Oct 19, 2017 9:52 am

adaml30 wrote:
Thu Oct 19, 2017 9:49 am
Speaking of Chase Saphire... I hope I am not hijacking the thread, but my wife has CSR, and I am thinking about getting the Preferred. I would get the 50k points after 4K in 3 months. Could I then transfer the points to her account meaning we would get the 1.5 on travel as opposed to the 1.25 I would get on preferred? I currently transfer the points from our Chase Freedom to her CSR. I would then cancel my preferred close to annual fee date to avoid paying that, like you have suggested. Thanks!!
I'd say yes. Mrs. Tallis has the CSP and a Freedom card, while I have the Ink Plus and a Freedom card. We pool all points in her CSP account.

User avatar
jeffyscott
Posts: 6578
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: How soon to cancel a credit card after signup bonus.

Post by jeffyscott » Thu Oct 19, 2017 9:58 am

JBTX wrote:
Wed Oct 18, 2017 7:46 pm
To take it further, often I won't even follow up until I am charged the fee. When I see it come through on quicken, I'll call and see if I can get it waived. Sometimes they waive it if you spend a small amount of the next month. If they don't, you may have the option to downgrade if you so choose, or else if you cancel I think you have 30 days, so you can have the entire fee amount refunded. I have done this a couple of times.

Speaking of chase, I recently got rejected for one of their cards because I had 5 cards opened in two years.
I think I had seen somewhere that after the 30 day grace period, you would still get refunded a pro-rated portion of the annual fee if you cancel? Don't know if that is a general policy, a regulation, or my imagination, though :wink: . So far the only fee card that has been worth keeping for me is IHG. I never get offered any retention bonus, because I refuse to call and it seems they won't offer anything when you cancel via their secure email systems or chat.

Yep, chase has that rule now. I keep track (or credit karma does) so that I won't apply for a chase card if I have gotten 5 in prior 24 months.
press on, regardless - John C. Bogle

dbr
Posts: 23770
Joined: Sun Mar 04, 2007 9:50 am

Re: How soon to cancel a credit card after signup bonus.

Post by dbr » Thu Oct 19, 2017 9:59 am

Banks are getting more and more restrictive about churning cards and cancelling cards soon after getting the bonus. The warnings from AMEX about this mentioned above should probably be taken seriously. Also, AMEX no longer pro-rates the fee.

drk
Posts: 96
Joined: Mon Jul 24, 2017 10:33 pm
Location: Seattle

Re: How soon to cancel a credit card after signup bonus.

Post by drk » Thu Oct 19, 2017 10:03 am

jeffyscott wrote:
Thu Oct 19, 2017 9:58 am
JBTX wrote:
Wed Oct 18, 2017 7:46 pm
To take it further, often I won't even follow up until I am charged the fee. When I see it come through on quicken, I'll call and see if I can get it waived. Sometimes they waive it if you spend a small amount of the next month. If they don't, you may have the option to downgrade if you so choose, or else if you cancel I think you have 30 days, so you can have the entire fee amount refunded. I have done this a couple of times.

Speaking of chase, I recently got rejected for one of their cards because I had 5 cards opened in two years.
I think I had seen somewhere that after the 30 day grace period, you would still get refunded a pro-rated portion of the annual fee if you cancel? Don't know if that is a general policy, a regulation, or my imagination, though :wink: . So far the only fee card that has been worth keeping for me is IHG. I never get offered any retention bonus, because I refuse to call and it seems they won't offer anything when you cancel via their secure email systems or chat.

Yep, chase has that rule now. I keep track (or credit karma does) so that I won't apply for a chase card if I have gotten 5 in prior 24 months.
Chase will refund the full annual fee if you cancel within 30 days or product change within 60 days, and they will refund a pro-rated portion if you product change after 60 days.

JBTX
Posts: 1534
Joined: Wed Jul 26, 2017 12:46 pm

Re: How soon to cancel a credit card after signup bonus.

Post by JBTX » Thu Oct 19, 2017 10:09 am

jeffyscott wrote:
Thu Oct 19, 2017 9:58 am
JBTX wrote:
Wed Oct 18, 2017 7:46 pm
To take it further, often I won't even follow up until I am charged the fee. When I see it come through on quicken, I'll call and see if I can get it waived. Sometimes they waive it if you spend a small amount of the next month. If they don't, you may have the option to downgrade if you so choose, or else if you cancel I think you have 30 days, so you can have the entire fee amount refunded. I have done this a couple of times.

Speaking of chase, I recently got rejected for one of their cards because I had 5 cards opened in two years.
I think I had seen somewhere that after the 30 day grace period, you would still get refunded a pro-rated portion of the annual fee if you cancel? Don't know if that is a general policy, a regulation, or my imagination, though :wink: . So far the only fee card that has been worth keeping for me is IHG. I never get offered any retention bonus, because I refuse to call and it seems they won't offer anything when you cancel via their secure email systems or chat.

Yep, chase has that rule now. I keep track (or credit karma does) so that I won't apply for a chase card if I have gotten 5 in prior 24 months.
I think you are right regarding prorated annual fee but like you I’m not sure.

If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?

dbr
Posts: 23770
Joined: Sun Mar 04, 2007 9:50 am

Re: How soon to cancel a credit card after signup bonus.

Post by dbr » Thu Oct 19, 2017 10:42 am

JBTX wrote:
Thu Oct 19, 2017 10:09 am


I think you are right regarding prorated annual fee but like you I’m not sure.

If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
At AMEX possibly not without being blacklisted by them forever which includes forfeiting all points you have with them.

Historically this card churning stuff was routine. I don't how many Citi AA Exec cards some people got at 100,000 miles a pop, or BoA Alaska Cards, etc., but as I said banks are closing the door on this stuff, some of them vigorously and others less aggressively. I would be a little careful.

JBTX
Posts: 1534
Joined: Wed Jul 26, 2017 12:46 pm

Re: How soon to cancel a credit card after signup bonus.

Post by JBTX » Thu Oct 19, 2017 10:52 am

dbr wrote:
Thu Oct 19, 2017 10:42 am
JBTX wrote:
Thu Oct 19, 2017 10:09 am


I think you are right regarding prorated annual fee but like you I’m not sure.

If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
At AMEX possibly not without being blacklisted by them forever which includes forfeiting all points you have with them.

Historically this card churning stuff was routine. I don't how many Citi AA Exec cards some people got at 100,000 miles a pop, or BoA Alaska Cards, etc., but as I said banks are closing the door on this stuff, some of them vigorously and others less aggressively. I would be a little careful.
Yeah I kinda learned the hard way. Started dabbling recently pursuing large bonuses but definitely not to the churning level. Over past 2 years opened several cards for various non churning reasons ( ongoing rewards but not upfront rewards). All of a sudden I’ve opened 5 or 6 in 2 years and can’t get a chase card. I may never be able to as I suspect I will still open ones occasionally that either have very large bonuses or an attractive ongoing reward structure. While i understand chase not wanting to perpetually pay rewards to churners on the flip side they may be alienating potential customers for their vast array of financial services.

MikeZ
Posts: 198
Joined: Sun Dec 07, 2014 9:17 pm

Re: How soon to cancel a credit card after signup bonus.

Post by MikeZ » Thu Oct 19, 2017 10:59 am

It's going to depend on the card and the issuer rules around churning the card/issuing other cards. E.g., if it's a Citi product, you'll want to cancel sooner to restart the 24 month clock from applying again. If it's Amex, it does not matter as sign up bonuses are once per lifetime unless you want more than 5 open Amex personal cards.

If you have another card with the same issuer, ask to move the line of credit to another card to minimize any score impact.

Also, if you booked any trips with the card make sure that you wait until AFTER the trip to cancel before you cancel to make sure you get any trip cancellation insurance benefits that the card offers in case something goes wrong.

User avatar
jeffyscott
Posts: 6578
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: How soon to cancel a credit card after signup bonus.

Post by jeffyscott » Thu Oct 19, 2017 11:03 am

JBTX wrote:
Thu Oct 19, 2017 10:09 am
If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
I did some searching, since we recently took advantage of Barclaycard's, pay fee, use it once, get 50,000 AA miles offer. Ran across a post where someone pointed out their terms include this:

Your Account cannot have been inactive for 6 billing cycles in a row (representing approximately 6 months). “Inactive” means you have no balance, no payments and no transactions.

I'm not sure what that means :?: , but in looking into it, I found the terms also include:

In the event of any abusive, gaming or fraudulent activity related to the Account, as determined by us in our sole discretion, we reserve the right to make corresponding AAdvantage® miles adjustments to the miles accrued in the Program through use of the Account and/or to cancel your Account at any time.
press on, regardless - John C. Bogle

bta15
Posts: 133
Joined: Wed Jul 10, 2013 12:06 pm

Re: How soon to cancel a credit card after signup bonus.

Post by bta15 » Thu Oct 19, 2017 11:08 am

I just wait until the annual fee posts and close within 30 days of that (while simultaneously requesting an annual fee refund).

One special case is the BoA Alaska card. I wait until the second year companion fare posts to my mileage plan account then cancel.

JBTX
Posts: 1534
Joined: Wed Jul 26, 2017 12:46 pm

Re: How soon to cancel a credit card after signup bonus.

Post by JBTX » Thu Oct 19, 2017 12:52 pm

jeffyscott wrote:
Thu Oct 19, 2017 11:03 am
JBTX wrote:
Thu Oct 19, 2017 10:09 am
If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
I did some searching, since we recently took advantage of Barclaycard's, pay fee, use it once, get 50,000 AA miles offer. Ran across a post where someone pointed out their terms include this:

Your Account cannot have been inactive for 6 billing cycles in a row (representing approximately 6 months). “Inactive” means you have no balance, no payments and no transactions.

I'm not sure what that means :?: , but in looking into it, I found the terms also include:

In the event of any abusive, gaming or fraudulent activity related to the Account, as determined by us in our sole discretion, we reserve the right to make corresponding AAdvantage® miles adjustments to the miles accrued in the Program through use of the Account and/or to cancel your Account at any time.
Interesting. I did have 2 citiaadvantage cards. One business one regular. I hadn’t used the regular in over a year. They charged annual fee. I called to see if they would waive it if I used it. They wouldn’t. So I cancelled. Did the same with my other citinaadv soon after. Since I do occasionally use it they waived the fee if I spent 95 in a month or two.

I am no longer pursuing cards just for straight up airline miles. Miles are getting harder to use and you often pay fee anyway.

2015
Posts: 907
Joined: Mon Feb 10, 2014 2:32 pm

Re: How soon to cancel a credit card after signup bonus.

Post by 2015 » Thu Oct 19, 2017 7:47 pm

JBTX wrote:
Thu Oct 19, 2017 12:52 pm
jeffyscott wrote:
Thu Oct 19, 2017 11:03 am
JBTX wrote:
Thu Oct 19, 2017 10:09 am
If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
I did some searching, since we recently took advantage of Barclaycard's, pay fee, use it once, get 50,000 AA miles offer. Ran across a post where someone pointed out their terms include this:

Your Account cannot have been inactive for 6 billing cycles in a row (representing approximately 6 months). “Inactive” means you have no balance, no payments and no transactions.

I'm not sure what that means :?: , but in looking into it, I found the terms also include:

In the event of any abusive, gaming or fraudulent activity related to the Account, as determined by us in our sole discretion, we reserve the right to make corresponding AAdvantage® miles adjustments to the miles accrued in the Program through use of the Account and/or to cancel your Account at any time.
Interesting. I did have 2 citiaadvantage cards. One business one regular. I hadn’t used the regular in over a year. They charged annual fee. I called to see if they would waive it if I used it. They wouldn’t. So I cancelled. Did the same with my other citinaadv soon after. Since I do occasionally use it they waived the fee if I spent 95 in a month or two.

I am no longer pursuing cards just for straight up airline miles. Miles are getting harder to use and you often pay fee anyway.
This isn't the first time I've read that airline miles are getting harder to use. Can you explain more about your experience? Would you recommend to someone (like me) who hasn't previously pursued airline miles to simply pursue sign up bonuses instead? I was thinking of pursuing airline miles to use to upgrade to business or economy plus type class, but if it's more trouble than it's worth, perhaps I should simply stick to sign up bonuses?

rgs92
Posts: 1445
Joined: Mon Mar 02, 2009 8:00 pm

Re: How soon to cancel a credit card after signup bonus.

Post by rgs92 » Thu Oct 19, 2017 8:04 pm

It was not Chase bank or Citi (or Amex). It was a Visa though from a well known bank that is mentioned around here.
I did not spend on travel or airline points, just regular things like food and other ordinary goods.
I now have a nice $500 credit (and a $95 fee for annual membership). So I'm ahead by about $400 so far.

JBTX
Posts: 1534
Joined: Wed Jul 26, 2017 12:46 pm

Re: How soon to cancel a credit card after signup bonus.

Post by JBTX » Thu Oct 19, 2017 8:42 pm

2015 wrote:
Thu Oct 19, 2017 7:47 pm
JBTX wrote:
Thu Oct 19, 2017 12:52 pm
jeffyscott wrote:
Thu Oct 19, 2017 11:03 am
JBTX wrote:
Thu Oct 19, 2017 10:09 am
If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
I did some searching, since we recently took advantage of Barclaycard's, pay fee, use it once, get 50,000 AA miles offer. Ran across a post where someone pointed out their terms include this:

Your Account cannot have been inactive for 6 billing cycles in a row (representing approximately 6 months). “Inactive” means you have no balance, no payments and no transactions.

I'm not sure what that means :?: , but in looking into it, I found the terms also include:

In the event of any abusive, gaming or fraudulent activity related to the Account, as determined by us in our sole discretion, we reserve the right to make corresponding AAdvantage® miles adjustments to the miles accrued in the Program through use of the Account and/or to cancel your Account at any time.
Interesting. I did have 2 citiaadvantage cards. One business one regular. I hadn’t used the regular in over a year. They charged annual fee. I called to see if they would waive it if I used it. They wouldn’t. So I cancelled. Did the same with my other citinaadv soon after. Since I do occasionally use it they waived the fee if I spent 95 in a month or two.

I am no longer pursuing cards just for straight up airline miles. Miles are getting harder to use and you often pay fee anyway.
This isn't the first time I've read that airline miles are getting harder to use. Can you explain more about your experience? Would you recommend to someone (like me) who hasn't previously pursued airline miles to simply pursue sign up bonuses instead? I was thinking of pursuing airline miles to use to upgrade to business or economy plus type class, but if it's more trouble than it's worth, perhaps I should simply stick to sign up bonuses?
First I’ll say this is just my anecdotal perception.

Historically when I wanted to do personal travel because of work I didn’t have a ton of flexibility in terms of flight times. I wasn’t going to take a whole day off of work to get the 6:00 am flight on Friday morning I usually couldn’t take advantage of the lowest mileage fares (like 25k miles). I’d have to use higher mileage fares. Now often you will have to pay a dollar fee along with the miles.

Also I just don’t do a ton of personal airline travel nowadays. So obviously that makes them harder to use. I am sitting on over 200k a advantage miles and my wife has about 60k.

Now for somebody who is retired and has a lot of flexibility of travel times it may be a different story.

I don’t have any hotel points cards but I think they could be more useful.

When you can get cards that just give you dollars or redeem the dollars for any kind of travel that just seems more flexible.

ryan1982
Posts: 18
Joined: Thu Sep 22, 2016 12:04 am

Re: How soon to cancel a credit card after signup bonus.

Post by ryan1982 » Thu Oct 19, 2017 11:34 pm

rgs92 wrote:
Wed Oct 18, 2017 1:08 pm
I got a credit card with $95 annual fee (and had to pay it right away) but got a signup point bonus that gives me $500 (from 50,000 points).
(I earned it already in the first billing cycle by charging $3000).

So after I redeem the bonus, can I just cancel the card within a year to avoid more annual fees? Thanks.
I am having trouble plowing through the fine print legalese, and I don't see anything but worry that there is something hidden.
I also am concerned (a bit) about getting my credit rating dinged.
I picked up the Chase Sapphire Reserve and my wife picked up the Chase Sapphire Preferred recently, as we had a few big purchases and wanted to capitalize on the bonus points. After earning the bonus points on the Chase Sapphire Preferred, I attempted to downgrade the Preferred to the Chase Freedom Unlimited, as it pairs better with the Reserve. No dice. I was told that the card was not eligible for downgrading until it was held for at least one year. I wound up just applying for the Chase Freedom Unlimited. Anyway, I didn't ask about canceling the Preferred, but I imagine that it could be canceled at any time. I plan to wait until a month or so before the fee assesses to attempt cancel the card. Good luck.

DrGoogle2017
Posts: 515
Joined: Mon Aug 14, 2017 12:31 pm

Re: How soon to cancel a credit card after signup bonus.

Post by DrGoogle2017 » Fri Oct 20, 2017 1:03 am

I usually cancel them before I forget and get charged some fees.

dcb
Posts: 100
Joined: Wed Sep 26, 2007 12:44 pm
Location: Southwest Michigan

Re: How soon to cancel a credit card after signup bonus.

Post by dcb » Fri Oct 20, 2017 8:21 am

I have the Chase Sapphire Reserve card and the Chase Freedom card. My Sapphire card will be charged the annual fee soon and I would like to cancel it. All of my points from both cards are in the Ultimate Rewards program (some with the Freedom card, but most with the Sapphire card). If I cancel the Sapphire card and transfer all those points to the Freedom Ultimate rewards is there any downside or potential of losing them?

dcb

2015
Posts: 907
Joined: Mon Feb 10, 2014 2:32 pm

Re: How soon to cancel a credit card after signup bonus.

Post by 2015 » Fri Oct 20, 2017 9:39 am

JBTX wrote:
Thu Oct 19, 2017 8:42 pm
2015 wrote:
Thu Oct 19, 2017 7:47 pm
JBTX wrote:
Thu Oct 19, 2017 12:52 pm
jeffyscott wrote:
Thu Oct 19, 2017 11:03 am
JBTX wrote:
Thu Oct 19, 2017 10:09 am
If you can prorate, I wonder how that works with some of these cards with high up front bonuses that charge you annual fee first year? Can you cancel the card after getting your bonus to get Your prorated fee back?
I did some searching, since we recently took advantage of Barclaycard's, pay fee, use it once, get 50,000 AA miles offer. Ran across a post where someone pointed out their terms include this:

Your Account cannot have been inactive for 6 billing cycles in a row (representing approximately 6 months). “Inactive” means you have no balance, no payments and no transactions.

I'm not sure what that means :?: , but in looking into it, I found the terms also include:

In the event of any abusive, gaming or fraudulent activity related to the Account, as determined by us in our sole discretion, we reserve the right to make corresponding AAdvantage® miles adjustments to the miles accrued in the Program through use of the Account and/or to cancel your Account at any time.
Interesting. I did have 2 citiaadvantage cards. One business one regular. I hadn’t used the regular in over a year. They charged annual fee. I called to see if they would waive it if I used it. They wouldn’t. So I cancelled. Did the same with my other citinaadv soon after. Since I do occasionally use it they waived the fee if I spent 95 in a month or two.

I am no longer pursuing cards just for straight up airline miles. Miles are getting harder to use and you often pay fee anyway.
This isn't the first time I've read that airline miles are getting harder to use. Can you explain more about your experience? Would you recommend to someone (like me) who hasn't previously pursued airline miles to simply pursue sign up bonuses instead? I was thinking of pursuing airline miles to use to upgrade to business or economy plus type class, but if it's more trouble than it's worth, perhaps I should simply stick to sign up bonuses?
First I’ll say this is just my anecdotal perception.

Historically when I wanted to do personal travel because of work I didn’t have a ton of flexibility in terms of flight times. I wasn’t going to take a whole day off of work to get the 6:00 am flight on Friday morning I usually couldn’t take advantage of the lowest mileage fares (like 25k miles). I’d have to use higher mileage fares. Now often you will have to pay a dollar fee along with the miles.

Also I just don’t do a ton of personal airline travel nowadays. So obviously that makes them harder to use. I am sitting on over 200k a advantage miles and my wife has about 60k.

Now for somebody who is retired and has a lot of flexibility of travel times it may be a different story.

I don’t have any hotel points cards but I think they could be more useful.

When you can get cards that just give you dollars or redeem the dollars for any kind of travel that just seems more flexible.
Thank you! I'm retired, so I may do some exploring in this area.

drk
Posts: 96
Joined: Mon Jul 24, 2017 10:33 pm
Location: Seattle

Re: How soon to cancel a credit card after signup bonus.

Post by drk » Sat Oct 21, 2017 12:31 am

dcb wrote:
Fri Oct 20, 2017 8:21 am
I have the Chase Sapphire Reserve card and the Chase Freedom card. My Sapphire card will be charged the annual fee soon and I would like to cancel it. All of my points from both cards are in the Ultimate Rewards program (some with the Freedom card, but most with the Sapphire card). If I cancel the Sapphire card and transfer all those points to the Freedom Ultimate rewards is there any downside or potential of losing them?

dcb
No. If you transfer the points, you run no risk of losing them. They will be safe with the Freedom. That being said, have you considered downgrading the Sapphire Reserve to the Freedom Unlimited rather than cancelling?

User avatar
jeffyscott
Posts: 6578
Joined: Tue Feb 27, 2007 9:12 am
Location: Wisconsin

Re: How soon to cancel a credit card after signup bonus.

Post by jeffyscott » Sat Oct 21, 2017 7:24 am

Chase Freedom does not allow transfer of points to airlines, Sapphire does. I think freedom also does not give any bonus value for booking travel through the chase site.

I think with the Freedom card there is really no added value to doing anything other than cashing in. So not sure what the point of transferring from Sapphire to Freedom would be, unless you are planning to hold them there until you have a Sapphire card again.
press on, regardless - John C. Bogle

rockymn
Posts: 1
Joined: Sun Nov 12, 2017 8:53 pm

Re: How soon to cancel a credit card after signup bonus.

Post by rockymn » Sun Nov 12, 2017 8:55 pm

I usually cancel before the annual fees but in some cases it help to cancel earlier so you are eligible for bonus next time.

There is a CC churning whatsapp group to discuss things as such.
https://chat.whatsapp.com/EJ6eSAP65I269cZNzGN20k

Post Reply