In our previous article, “Credit Card Tips — Product Changes,” we explained how product changes can help you avoid annual fees, get better benefits, and even hold multiple copies of the same card. Product changes are, in fact, one of the banks’ ways of retaining customers and increasing potential revenue. Today, we’re introducing another useful tactic: the Retention Offer. Before you close a card, it’s worth asking about one—you might be in for a pleasant surprise.
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What Is a Retention Offer? How Is It Different?
A retention offer is a special incentive from a credit card company meant to persuade you not to close your credit card. From the issuer’s perspective, keeping you as a cardholder can generate revenue through interest, swipe fees, annual fees, and more. For cardholders, these offers can mean extra rewards while also letting you continue using and enjoying the card.
A typical promotion offer is designed to encourage spending. Examples include Discover’s first-year cashback match promotion, Citi’s temporary bonus categories such as an extra 3x points at grocery stores and drugstores for a given month, or AMEX Offers with statement credits. A retention offer, by contrast, is usually only presented when you ask about closing the card. The purpose is clear: the issuer wants you to keep the card and continue spending on it.
What Kinds of Retention Offers Are There? How Do You Get One?
Common types of retention offers include:
- Annual fee waiver: for example, Citi AA may waive the annual fee
- A direct statement credit: for example, Chase UA may offer $30-$150
- A points bonus: for example, AMEX SPG may offer 1,500-10,000 bonus points
- Extra rewards after meeting a spending requirement: for example, Citi AA may offer double AA miles on monthly spending for 18 months
To get a retention offer, you generally need to call customer service (the number on the back of your card is fine), say that you’re thinking about closing the card, give a few reasons, and then ask whether there is any retention offer available if you keep it. A knowledgeable representative will usually pull up your account history or spending record, or transfer you to a department that handles these requests, and then present you with some options. Below is a specific example of getting a retention offer on the Chase United Explorer credit card:
- Me: Hi, I’ve had this card for a year now, but the annual fee is coming up, and I’m considering whether I should close it. (Give a reason for closing the card, but make it clear that you’re only considering it, not that you’ve definitely decided. Leave yourself some room.)
- Rep: This card has a lot of benefits, such as a free checked bag on UA flights, priority boarding, and 2x UA miles on purchases made on the UA website. (The rep will usually spend a little time highlighting the card’s features.)
- Me: But I think the $95 annual fee is a little high, and I’ve noticed that the Citi AA credit card not only offers a free checked bag and priority boarding, but also gives 10% of redeemed miles back. Is there any offer that would make it worthwhile for me to keep using this card? (Compare it with a similar card, point out that the Chase UA card isn’t as strong as the Citi AA card, and also signal that you’d keep the card if you receive a good offer.)
- Rep: Let me take a look. Okay, I found an offer for 10,000 UA miles. How does that sound? Would you like to accept it? (At this point, the rep is usually checking your spending history, and the system may generate several possible offers.)
- Me: Could you check whether there are any other offers available? (Always ask.)
- Rep: Alternatively, I can offer you a $150 statement credit, which would effectively cover the annual fee. (The rep may list all available offers for you to choose from.)
- Me: Great, I’ll take the $150 statement credit. (Choose the one that fits you best.)
- Rep: Okay, your statement credit will appear before your next statement. Thank you for keeping the card. Is there anything else I can help you with?
- Me: No, that’s all. Thank you. (Hang up happily.)
In general, mentioning that you want to close the card is a necessary condition, because only when the representative understands that you’re seriously considering cancellation can they check for a retention offer in the system. Some reps may not even want to check and will just keep repeating the benefits of the card. In that case, you can simply hang up and call again, or ask to be transferred to a supervisor.
Issuer Policies
Different banks have very different retention-offer policies. Some issuers are extremely generous and will quickly throw multiple offers your way. Others won’t give you much no matter how hard you try, unless you happen to get a particularly helpful representative. Even for the same card, the strength of the retention offer can vary. Generally speaking, cards with annual fees are more likely to get retention offers; airline and hotel co-branded cards are usually easier to get offers on than regular cashback cards; and points-earning cards are usually easier than plain cashback cards. Let’s compare issuer policies below:
American Express (Spend More, Get More)
When it comes to retention offers, AMEX generally follows a “spend more, get more” philosophy. If your spending on the card is too low, it’s usually hard to get a strong offer. For example, with the SPG credit card, someone who spent 40,000 in a year might receive a retention offer of 10,000 SPG points. But if you only spent a few hundred, you may not get any offer at all, because the issuer may view your future spending potential as too low and the return on offering you an incentive as poor. If you call a few times, you might eventually get something like 1,500 points. AMEX charge cards such as the Premier Gold Rewards and Platinum tend to have more generous retention offers, and it’s common to see offers of 10,000 MR points (worth about $200).
Chase (Varies by Card)
Chase hotel cards often get annual fee waivers or a certain number of bonus points. Airline cards such as UA and BA may receive a statement credit or a mileage bonus. But Chase’s own Sapphire line, especially the Chase CSP credit card, tends to be stingier, and it can be difficult to get a good offer. That said, if your spending is high enough and you get a good representative, there’s still some hope.
Citi (Generous Across the Board)
Citi is often the most generous when it comes to retention offers. Even no-annual-fee cards such as Citi Thankyou Preferred and Citi Dividend can receive retention offers, such as an extra 3x points on all spending or 5% cashback on all spending. Airline cards like Citi AA may offer both an annual fee waiver and double AA miles on spending for 18 months. Fee-bearing cards such as Premier and Prestige may even offer 5x at grocery stores and drugstores. In short, if you’re thinking about closing a card, call first and ask whether there’s an offer you’d want.
Bank of America, Barclays, Discover
BofA’s airline cards may sometimes offer an annual fee waiver, but they are generally not that generous. Barclays used to be notoriously stingy, but these days cards in the Arrival and Aviator families may also come with annual fee waivers. Discover has no-annual-fee cards, and realistically, not many people are thinking about asking for a retention offer before closing one.
Should You Ask for a Retention Offer?
Although a retention offer is simply one of the bank’s tools for keeping customers, and asking for one before closing a card is entirely within your rights, it can sometimes feel a bit like asking for a handout—especially if you never intended to close the card, or if you’ve only had it for a few months and are simply trying to squeeze out another round of value. My own view is simple: as long as your conscience is clear, that’s up to you. Everyone has their own way of maximizing benefits, and if you want to keep calling until you get a better offer, that’s your choice. However, I do think there should be a bottom line: if you accept the issuer’s offer and agree to keep the card, it’s best not to take the offer and then turn around and close the card anyway just to avoid the annual fee. In the long run, if too many people do that, issuers will naturally tighten their retention policies, and eventually nobody will get good offers. Also, when you call to ask for an offer, there’s no need to be rude. If they give you one, great; if not, just hang up politely and call again later to see whether a different representative is more helpful.
Things to Keep in Mind
- It’s best to call during the daytime on a weekday, Monday through Friday. At that time, you may be transferred to a dedicated customer relationship office, which can improve your odds of getting a good offer.
- After hearing one offer, ask whether there are any others so you can choose the one that fits you best.
- If they don’t offer you anything, just say you still haven’t decided whether to close the card, and call again a few days later.