Reply
Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012

Negative Consequences to churning Amex?

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?


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!
Frequent Contributor
GaTech
Posts: 374
Registered: ‎02-10-2013

Re: Negative Consequences to churning Amex?

I haven't done that but I would imagine AMEX would blacklist you if they suspected that you're just churning their cards.
As of 1/10/2014 EX FICO - 748. EQ FICO - 728. Trans FICO - 755

WellsFargo - $3,000 AMEX BCE - $18,000 Chase Freedom - $4,000



Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Negative Consequences to churning Amex?


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 :smileyhappy:




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: Negative Consequences to churning Amex?

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.

Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Negative Consequences to churning Amex?


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?




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Negative Consequences to churning Amex?


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.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013

Re: Negative Consequences to churning Amex?

[ Edited ]

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.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: Negative Consequences to churning Amex?


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.

Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Negative Consequences to churning Amex?


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.




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Senior Contributor
Open123
Posts: 3,944
Registered: ‎02-23-2011

Re: Negative Consequences to churning Amex?


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.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+