Those of us in the miles and points space that have been known to apply for a credit card from time to time are no doubt familiar with the latest change from American Express. Now, you can normally get a new account bonus for a product just once in a lifetime for Amex business cards. Amex personal cards went this route a while ago, but the biz cards were still churnable (as long as you were applying 12 months after account closure)……until this week. There are apparently some exceptions for particular targeted offers, but for the most part, churning is going to be less lucrative for now.
There has been a predictable amount of teeth-gnashing, and frankly, I understand why. Yet, I’m not bothered by Amex’s business decision, or for that matter Chase’s 5/24 rule, or Citi’s recent wave of account closures. Let’s face it, “the game” or “the hobby” or whatever you want to call it is not as much fun as it used to be. Frankly, I’d rather focus on other things. Last month I balanced my checkbook for the first time in years. No, I haven’t been ignoring my spending….I track it online, and one could reasonably question the value of an “old-timey” checkbook reconciliation in an era of instant online access to accounts. For me, it’s just one little thing in a focus on financial discipline and having the money in the bank to buy a ticket if I want to rather than one more spreadsheet and a wallet full of credit cards to manage.
Back to Basics
For sure, I’m not walking away from earning miles and points from credit cards, but my focus has evolved. Actually, “evolve” isn’t the right word. In reality, I’ve gone back to basics. Over the next year I expect to whittle my card inventory down to something like this.
- Amex Platinum (A card I’ll likely always have)
- Chase Sapphire Preferred (Primary card)
- SkyMiles Amex (If I relocate away from Atlanta at some point, this will go away assuming I don’t move to another Delta hub)
- Fidelity Amex (Soon to be Visa)
- AAdvantage Aviator Red (Keeping it because you can’t apply for one, not to mention PIN backup for overseas travel)
I am by no means saying I’ll never apply for another card for an attractive points bonus. Certainly, something will come along and I’ll take advantage of it if it makes sense for me. There are plenty of innovative ways to come up with the miles and points you need, and maybe I’ll focus on some of those in the future as well.
What Happened?
A lot of people have wondered aloud about the meaning of the changes the banks have been making in the credit card space. In my opinion, the reasons behind it aren’t all that different than the reasons behind airline loyalty program changes. Primarily, the banks have figured out how much you (and I) are worth. And if you’re playing “the game” as well as you can, you really aren’t worth all that much to the bottom line.
Is it over? For now, mostly yes. Who knows what will happen down the road, but I’m not nearly as confident as some that anything resembling the glory days of credit card bonus “maximization” đŸ™‚ will ever be back. Has your relationship with miles and points cards evolved in light of recent changes?
-MJ, February 26, 2016
Great post…level-headed (as always). I’m in a similar boat. On the agenda is to make a spreadsheet of all CC, how much the annual fee is, and when it’s due. Time to cut some of the fat. I recently applied for the 80k Marriott, just for the heck of it. And since we have just jumped into a targeted 75k MR bonus for Business Rewards Gold (my only MR card), I think I’d be ready to pull the trigger if/when a 100k AmEx Platinum offer rolls around again. But other than that? I think I’m done with new apps for… Read more »
I’m just getting into the game. I worked for a airline for eight years and loved traveling during that time. In the eleven years since I’ve been doing mostly driving distance traveling and some home port cruises. My wanderlust for far away destinations has recently returned and I just got my Chase Shappire and Ink cards to go along with my existing Freedom card. I’m sad to be finding out that I missed out on the glory days of points/miles. I’m used to first class flying from airline days and I can’t afford to buy my way to the front… Read more »
Great post! I haven’t really played the credit card churning game that long, just over 3-yrs, or that seriously. I did apply for a few cards to benefit from the AA/USAir merger, but I tend to hold onto a card after I get it. I like AMEX, and hope they will figure out a way to reward people that hold onto a card. I’ve had my current PRG account for 12 years, but I started out with just the green card. I have noticed a pick-up in upgrade offers they are sending me. At the end of the day it… Read more »
good post.
less points for churners means potentially more benefits for people who actually use or keep the cards..
when your business does well you can afford to give more perks.
more power to amex.
That’s an expensive line up to keep! Can you explain how paying over $700 in annual fees is consistent with financial discipline?
For me it isn’t over but I only started 2 years ago. I’ve opened 20 accounts since then and am still less than half way through AMEX’s personal offerings and haven’t even started on business cards. I figure I’m at half time now and hope it goes into extra innings (2+ years left) This hobby is still fun for me and until they shut me down (looking at you Chase come April) I’ll keep churning.
Rock on Mike! I’m just sharing my perspective, and I’ve had just about every card I want…..for now. As for over $700 in annual fees, I’d start with saying that $700 is less than the $1200 I’m paying today, but let’s take a look at my situation. Amex Platinum ($450 – $200 airline credit = $250) – If I drop this card, I have to buy Delta Sky Club membership for at least $450. Delta Amex – $95ish??? (goes away if I move, might get dropped in next 12 months anyway) Chase Sapphire Preferred – $95 valuable rewards, primary rental… Read more »