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I recently got the SPG Biz and Amex Gold Biz for the sweet sign up bonuses. The SPG's 25,000 are already banked and the Gold's 75,000 will be coming in the next month or so. I just applied for these on 5/17/13, received them a few days later and then made the spending requirements within the next week or so. Mission almost accomplished. Just gotta secure my MR points in a different currency or open another Amex that is MR eligible.
I know Amex has the policy that you can't be eligible for future new applicant bonuses if you have owned the cards during ther last 12 months. So, by that rationale, the sooner these are closed the better. Anyone ever have negative back lash from Amex for going after the bonus and then closing the cards shortly have getting the bonus?
@GaTech wrote:
I haven't done that but I would imagine AMEX would blacklist you if they suspected that you're just churning their cards.
I agree
My mom recently signed up for the Platinum when it was 100,000 points after $3,000 spend. I told her to spend, sell the points and close the card to get a refund of the fee. On the telephone call to close the card, the woman made a point to mention that my mom had redeemed the points already and just got the card but cancelled anyway. The whole thing happened within two months and her Blue Cash Everyday is still open. I plan to close the Delta and Premier Rewards Gold pretty soon, so I will see what happens to me. If you don't care about their cards (we don't) you can do it. If you would care if they closed your cards for abusing sign up bonuses or prevent you from earning points in the future, you could just not do it.
@navigatethis12 wrote:My mom recently signed up for the Platinum when it was 100,000 points after $3,000 spend. I told her to spend, sell the points and close the card to get a refund of the fee. On the telephone call to close the card, the woman made a point to mention that my mom had redeemed the points already and just got the card but cancelled anyway. The whole thing happened within two months and her Blue Cash Everyday is still open. I plan to close the Delta and Premier Rewards Gold pretty soon, so I will see what happens to me. If you don't care about their cards (we don't) you can do it. If you would care if they closed your cards for abusing sign up bonuses or prevent you from earning points in the future, you could just not do it.
Do you think a lot of this happening will eventually hurt everyone by mediocre sign up bonuses in the future?
@GaTech wrote:
I haven't done that but I would imagine AMEX would blacklist you if they suspected that you're just churning their cards.
+1.
Not sure if Amex is as strict as Chase is on this, but if they are, you will be blacklisted for at least some time. I won't be surprised though.
If you do this once or twice over the span of say uh 5 years, you probably should be fine.
@LS2982 wrote:Do you think a lot of this happening will eventually hurt everyone by mediocre sign up bonuses in the future?
I don't think it will, since people who do this are just a very very small group.
Banks will probably just enforce even stricter rules on this group of people, such as either lowering the threshold to get blacklisted, or not qualifying them for future sign-up bonuses entirely.
Most people won't do this because of the inquiry + AAoA hit on the account.
Sign-up bonuses are also mostly meant as a marketing tool to attract customers. Lackluster bonuses will hardly attract anyone unless the card has really good benefits.
@LS2982 wrote:Do you think a lot of this happening will eventually hurt everyone by mediocre sign up bonuses in the future?
I'm not exactly sure what you mean, but this was the first and most likely only time that we will do this. Their sign up bonuses are already mediocre and those offers were for a limited time only. Unlike others, my experiences with American Express have been terrible, so I am not concerned about them losing money on me. Most people on here suggest people doing the same with the Sapphire Preferred.
@navigatethis12 wrote:
@LS2982 wrote:Do you think a lot of this happening will eventually hurt everyone by mediocre sign up bonuses in the future?
I'm not exactly sure what you mean, but this was the first and most likely only time that we will do this. Their sign up bonuses are already mediocre and those offers were for a limited time only. Unlike others, my experiences with American Express have been terrible, so I am not concerned about them losing money on me. Most people on here suggest people doing the same with the Sapphire Preferred.
Im curious about it because it doesn't seem worth it to me. I guess it is for some.
@enharu wrote:Sign-up bonuses are also mostly meant as a marketing tool to attract customers. Lackluster bonuses will hardly attract anyone unless the card has really good benefits.
+1
Sign-up bonuses are based on interest rates and current economic environment.
If they were to be reduced, it wouldn't be because of those who sign up and cancel, but a change in strategy for marketing dollars. For instance, if rates were 10%, it would make more sense for the Bank to loan out their cash or earn short term interest; conversely, with such low rates and imminent inflation (devaluation), makes much more sense to allocate excess cash towards client acquisition, since this will also lower taxable income.