topic Re: Product change and signup bonus in Credit Cards

Product change and signup bonus

too-much-time — Thu, 14 Nov 2013 07:53:04 GMT

Why is it that a product change disqualifies the signup bonus? If you close a card, can't you simply apply for a new one and expect the same credit limit? The difference is a hard pull, but that can't be the primary focus of the credit card company.

Re: Product change and signup bonus

09Lexie — Thu, 14 Nov 2013 07:57:23 GMT

Sign up bonuses are for new customers not current ones who are 'churning' points. Chase goes so far to say....

Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer or have received a similar bonus offer, may not be eligible for a second Chase credit card in the same Rewards Program, or for any bonus offer. Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers, are not eligible for a second Chase credit card with promotional pricing.

Keep in mind, just because you were approved once, closing and then applying again is no guarantee you'd be approved again.

Re: Product change and signup bonus

takeshi74 — Thu, 14 Nov 2013 16:05:28 GMT

@too-much-time wrote:
Why is it that a product change disqualifies the signup bonus?

Because it's a sign up bonus. It's to attract a new cardholder. It's like the subsidy given devices with new cellular service contracts -- though the analogy doesn't hold when you consider contract renewals.

@too-much-time wrote:
If you close a card, can't you simply apply for a new one and expect the same credit limit?

No gurantees on the credit limit. A person's credit could easily have changed (or remained the same) since the prior credit limit was granted.

Re: Product change and signup bonus

FinStar — Thu, 14 Nov 2013 16:02:28 GMT

@takeshi74 wrote:
@too-much-time wrote:
Why is it that a product change disqualifies the signup bonus?

Because it's a sign up bonus. It's to attract a new cardholder. It's like the subsidy given on new cellular service contracts.

And what Lexie has already expanded on.

Re: Product change and signup bonus

too-much-time — Thu, 14 Nov 2013 23:34:24 GMT

@09Lexie wrote:

Sign up bonuses are for new customers not current ones who are 'churning' points. Chase goes so far to say....

Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer or have received a similar bonus offer, may not be eligible for a second Chase credit card in the same Rewards Program, or for any bonus offer. Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers, are not eligible for a second Chase credit card with promotional pricing.

As these conditions don't cover anything and everyone, they leave it wide open to the interpretation that some existing customers, new to the rewards program while not new to the credit card company, might actually qualify for the signup bonus. But they probably don't anyway, so maybe it's just across the board security, a simplification that catches most and hurts a few.

Re: Product change and signup bonus

Anonymous — Fri, 15 Nov 2013 00:20:14 GMT

@too-much-time wrote:
@09Lexie wrote:

Sign up bonuses are for new customers not current ones who are 'churning' points. Chase goes so far to say....

Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer or have received a similar bonus offer, may not be eligible for a second Chase credit card in the same Rewards Program, or for any bonus offer. Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers, are not eligible for a second Chase credit card with promotional pricing.

As these conditions don't cover anything and everyone, they leave it wide open to the interpretation that some existing customers, new to the rewards program while not new to the credit card company, might actually qualify for the signup bonus. But they probably don't anyway, so maybe it's just across the board security, a simplification that catches most and hurts a few.

Well, because it depends on the scenario. So they give you a broad definition and you assume worst case scenario in most cases. If you don't get the sign-up bonus again, so be it. But if you do get it, then good for you.

Think of it this way. You interview for a job, and they decided to hire you. The job comes with a 100k sign-on bonus. If you quit immediately after receiving the bonus, assuming the contract doesn't have any clause about you having to return the bonus if you fail to work for a specific amount of time, do you think you can get the sign-on bonus again if you immediately apply and interview for the same job again? Whereas if you wait a year or two, and then re-apply, they may give you the bonus again, or they may not, which depends on the company's policies.

Re: Product change and signup bonus

FinStar — Fri, 15 Nov 2013 04:25:07 GMT

@Anonymous wrote:
@too-much-time wrote:
@09Lexie wrote:

Sign up bonuses are for new customers not current ones who are 'churning' points. Chase goes so far to say....

Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer or have received a similar bonus offer, may not be eligible for a second Chase credit card in the same Rewards Program, or for any bonus offer. Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers, are not eligible for a second Chase credit card with promotional pricing.

As these conditions don't cover anything and everyone, they leave it wide open to the interpretation that some existing customers, new to the rewards program while not new to the credit card company, might actually qualify for the signup bonus. But they probably don't anyway, so maybe it's just across the board security, a simplification that catches most and hurts a few.

Well, because it depends on the scenario. So they give you a broad definition and you assume worst case scenario in most cases. If you don't get the sign-up bonus again, so be it. But if you do get it, then good for you.

Think of it this way. You interview for a job, and they decided to hire you. The job comes with a 100k sign-on bonus. If you quit immediately after receiving the bonus, assuming the contract doesn't have any clause about you having to return the bonus if you fail to work for a specific amount of time, do you think you can get the sign-on bonus again if you immediately apply and interview for the same job again? Whereas if you wait a year or two, and then re-apply, they may give you the bonus again, or they may not, which depends on the company's policies.

Excellent perspective enharu.

Re: Product change and signup bonus

yudeology101 — Fri, 15 Nov 2013 05:11:08 GMT

@Anonymous wrote:
@too-much-time wrote:
@09Lexie wrote:

Sign up bonuses are for new customers not current ones who are 'churning' points. Chase goes so far to say....

Chase cardmembers who currently have or have had a Chase credit card in any Rewards Program associated with this offer or have received a similar bonus offer, may not be eligible for a second Chase credit card in the same Rewards Program, or for any bonus offer. Chase cardmembers currently receiving promotional pricing, or Chase cardmembers with a history of only using their current or prior Chase card for promotional pricing offers, are not eligible for a second Chase credit card with promotional pricing.

As these conditions don't cover anything and everyone, they leave it wide open to the interpretation that some existing customers, new to the rewards program while not new to the credit card company, might actually qualify for the signup bonus. But they probably don't anyway, so maybe it's just across the board security, a simplification that catches most and hurts a few.

Well, because it depends on the scenario. So they give you a broad definition and you assume worst case scenario in most cases. If you don't get the sign-up bonus again, so be it. But if you do get it, then good for you.

Think of it this way. You interview for a job, and they decided to hire you. The job comes with a 100k sign-on bonus. If you quit immediately after receiving the bonus, assuming the contract doesn't have any clause about you having to return the bonus if you fail to work for a specific amount of time, do you think you can get the sign-on bonus again if you immediately apply and interview for the same job again? Whereas if you wait a year or two, and then re-apply, they may give you the bonus again, or they may not, which depends on the company's policies.

+2. Well said.