NO AMEX Sign Up Bonus for previous card holders

[yudeology101]

I guess it's confirmed. 

"May 2 is still the date where if you have ever had a specific consumer credit card open, no matter how long the account has been closed, you will not be able to get the bonus again"

http://thepointsguy.com/2014/03/american-express-tightening-sign-up-bonuses-no-past-cardholders-allo...

[-NewGuy-]

Wow. Well, no more guessing.

[Jasir]

I think this is a smart and fair policy AMEX is implimenting. I hope other banks follow suit with an at least a 2 year gap between qualifying for a sign up bonus on cards you previously closed.

[darkfrosty]

oh well that sucks. Not that I am a hardcore churner but I closed my amex plat in feb of this year cuz of the loss of lounge access and was planning on reapplying next year if they intro new perks but i guess getting the bonus again is out.

[-NewGuy-]

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@Jasir wrote:

I think this is a smart and fair policy AMEX is implimenting. I hope other banks follow suit with an at least a 2 year gap between qualifying for a sign up bonus on cards you previously closed.

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As much as many people will hate it, I agree that it's a smart business decision.

[CalAlumnus13]

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@Jasir wrote:

I think this is a smart and fair policy AMEX is implimenting. I hope other banks follow suit with an at least a 2 year gap between qualifying for a sign up bonus on cards you previously closed.

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I like the sound of a 2 year gap. It's enough to prevent regular churning, but also allows someone who cancelled a card following loss of benefits (*cough cough*, Platinum) to be incentivized to re-apply if the benefits are improved.

A lifetime limit on signup bonuses seems counter-productive though. I, for one, will now wait for an exceptionally high signup bonus before apping for any additional Amex cards.

[yudeology101]

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@darkfrosty wrote:

oh well that sucks. Not that I am a hardcore churner but I closed my amex plat in feb of this year cuz of the loss of lounge access and was planning on reapplying next year if they intro new perks but i guess getting the bonus again is out.

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That was my initial reaction, too.  Although it was a smart move by AMEX, they might be losing alot of potentials members as they might turn away and look for those other lenders who are more lenient w/ the signup bonuses for the past card holders.  But the question is....does AMEX care?  probably not. 

[jahsoul357]

Personally, I feel the same way "shinebock" on the link you provided does; the only people who would be affected by this is the people that dang near abuse the current setup to rack up points and bonuses. I believe a very high percentage of card holders will not be affected at all by this change and from a business standpoint, it makes 100% sense. *shrugs*

[longtimelurker]

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@jahsoul357 wrote:

Personally, I feel the same way "shinebock" on the link you provided does; the only people who would be affected by this is the people that dang near abuse the current setup to rack up points and bonuses. I believe a very high percentage of card holders will not be affected at all by this change and from a business standpoint, it makes 100% sense. *shrugs*

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Depending how long the exclusion is, it will potentially impact more than the hard core churners.  (I don't use "abuse" as that usually means just someone who does something more than you!).  Cards frequently change, and new ones come along, so it is certainly possible that I get Amex card X as the best for my current spending patterns.  At some stage, X changes, or my spending patterns change, or non-Amex card Y comes along, and I can no longer justify the AF.  So I cancel X, and get another card Y.

Later on, again, my spending patterns change, or Y gets nerfed or card X adds some great features.  Now card X is the best for me, for good and valid reasons.  With the old rules, assuming this takes place over more than a year, I would get the bonus when reapplying, now I won't.

And, because of this, it may be that I don't get card X, because even though the earning rate etc may be the best for me, card Z offers a substantial bonus, enough to make up for the lower rate for several years.  So it may not even be a great decision for Amex.   If other issuers follow, then yes.

[Genkeim]

I think this is a case of it only takes a few bad apples (abusers) to ruin it for everyone else.