Retention Offers - Guide

Retention offers are great reasons to keep a card open. They can give you a boost in points or even alleviate your annual fee by a fraction or even cover the whole thing. Not all retention offers are created equal and some offers may benefit you more than others. In the last section I’ll show you how I personally seek retention offers. 

Disclaimer: Retention offers are not guaranteed and can change daily. An offer you had today may not be available tomorrow. Not all accounts will be eligible for an offer. Your mileage may vary.

A Quick Summary Of Retention Offers

Retention offers are points or statement credits banks may offer you if you are considering canceling your credit card. There are many reasons to cancel a credit card but high annual fees are usually the number one reason. Not all banks or accounts will have retention offers available so your mileage may vary but it doesn’t hurt to ask before going through with canceling the card.

Types of Retention Offers

There are usually two types of retention offers, points or statement credits. Banks may offer you either a certain amount of points or a set statement credit in hopes of you keeping your account open. However, there usually is a condition that needs to be met in order for you to get the points or statement credit applied to your account. Generally, it will be a specific amount of spend you must put onto that card within a certain timeframe. Think of it like a mini welcome bonus requirement. 

Which Offer Should I Take?

This really varies by individuals because everyone’s situation is different. If life changes and you can’t afford the annual fee, the statement credit option may be better for you because it doesn’t make sense to go into debt for points. Another reason to take the statement credit is if you don’t find value in traveling and have a hard time using the points. 

Taking the points retention offer will be beneficial for those who can utilize those points for high value redemptions. If you can afford to pay the annual fee outright, the points option may be the better option. I prefer points most of the time as I can usually find a higher value in the points in the form of travel redemptions than the statement credit offering. 

Comparing The Offers

Hypothetically, if given a choice of 55,000 American Express Membership Rewards points or $550 in statement credits to keep your American Express Platinum card open which would you take? 

First, check to ensure that your points and statement credit offerings are equal. If you value American Express points at 1 cent per point, 55,000 points would have a value of $550. So there is no easy answer here. 

Next, ask yourself, can you get more than their standard point value? In this example, we have American Express points which has a standard redemption rate of 1 cent per point. If you can find redemptions, especially with transfer partners, for more than 1 cent per point, then automatically the points offer should be your answer. For example, if I can regularly redeem hotel stays for 1.5 cents per point, 55,000 points would be worth $825 to me. Thus, in this case, points win over the statement credit. 

How I Ask For A Retention Offer

Disclaimer: This is solely for educational purposes only. This is how I personally navigate retention offers with banks. This in no way will have a direct impact on your success. Your mileage may vary. 

A month before my annual fee posts, I will chat with the bank online or over the phone. I like to do this a month before the annual fee posts so I have time to decide if I really like the card and if the offer is worth it for me. If the offer is worth it then I am done. If not, I will call within 30 days of my annual fee posting on the account to see if the retention offer has changed. Offers change often so it may be worth it to check multiple times. Plus I can get a refund on the annual fee if I choose to do a product change or cancel the card within 30 days generally. 

Let them know that you are considering canceling your credit card (magic phrase). They will do either one of two things.

• Option A is starting the process and paperwork required to cancel your card.

• Option B is, the agent is proactive and checks your account to see if there’s a retention offer. If so, they might offer you something on the spot or transfer you to a retention specialist who will be authorized to offer you something to keep the card open.

If Option A happens, ask them outright if there is anything the bank is offering to alleviate the annual fee in terms of points or statement credits. If they say no, ask if you can talk to a retention specialist. Note: Not all banks may have retention specialists.

My conversation goes something like this: 

Me: “Hello, I’m calling today because my annual fee has been posted on my account and I am considering closing the account.” 

Them: “May I ask you the reason why you want to close your account?”

Me: “I really do like the card and all the benefits of the card. I just can’t afford the annual fee right now. Is there anything (insert bank name) is offering to alleviate the cost of the annual fee in terms of points or statement credits?” 

Them: “Let me go through every. single. benefit. the card has to offer.” 

Me: *Listens with pretend interest*

Me: “That all sounds great but I really don’t find much value in those benefits themselves. However, if there is a retention offer, I may be more interested in keeping this account open.”

Them: “Let me check that for you…Yes, there is an offer here.” or “No, unfortunately there is nothing offered on your account.”

• If there’s an offer, ask if it’s the best offer available. If they offer points, you can ask if there’s a statement credit offer instead. If they offer statement credits, you can ask if there's a points offer instead. Just choose the one you want. 

If they answered, “No, unfortunately there is nothing offered on your account.”

I have two options:

Option A: “Thank you for checking, let me think about the card some more and get back to you at a later time. I’ll keep the card open for now.” 

• This will allow me to hang up and call again (HUCA) at a later time in hopes an offer becomes available. 

Option B: “Are there downgrade options to a lower or no annual fee card?” or “Let’s go ahead and close this card then.”