So I have had the Alliant Cashback Visa Signature for nearly two years. The first year was 3% with no AF; my second year, at 2.5%, I paid the $59 AF because I anticipated spending the $11,800 needed to justify it over a fee-free 2% card (wound up spending $13,444 for an effective 2.06%).
Since then, the fee has gone up to $99, which pushes the break-even annual spend up to $19,800. For some time, I've had marked on my calendar to product-change the card to their no-fee 2% version, the Alliant Visa Platinum Rewards, prior to my annual fee hitting (mid-October). I called in today to make the change and learned, unpleasantly, than you must forfeit any accrued cashback when making the PC request! This really screws me for a couple of reasons:
- I redeem the minimum $25 cashback every time I breach that total, and I always draw exactly $25 (rather than, say, $30 if I have it) so that I have $5 leftover to accelerate the next cashout. Currently I'm sitting on $16 unredeemed, which is not enough to pull out on its own.
- In my current statement period, which ends a few days after the AF will hit, I will get about $20 cashback.
So that $36 of unredeemed cash presents this calculus: switch to 2% and lose $36, or pay the $99 fee for another year at 2.5%. Assuming identical spend next year:
2% × $13,444 = $269, minus $36 is $233
2.5% × $13,444 = $336, minus $99 is $237
Both options equate to about 1.7% return. Bummer!
So, lessons learned for anyone intending to make this switch:
- Stop using this card after the last statement before your AF will hit.
- Plan ahead to have >$25 available to cash out after that statement.
- Consider asking to change your statement date so that it cuts shortly before your membership anniversary. (In my case it's quite unfortunate: anniversary is the 12th, statement usually cuts 13th-14th). I put in a request to have it change to earlier in the month and have yet to hear back. Hoping, rather doubtfully, that they can cut this current statement early and I can get that cashback out before the AF.
For me, I think I'll pay the $99 for another year. At almost identical returns, the service and perks on the Cashback Visa Signature are better. And, you never know, maybe I'll hit $19,800. It'll certainly put the fire under me to generate MS. But next year I'll plan ahead!
