My wife just applied for the Starwood Preferred Guest American Express because the promotion was coming to a close. She was instantly approved. This is only her third card in the last year, so we take it pretty slow. We are cautious and carefully monitor our credit. She was at a 775 last month. I’ll let you know what it looks like once this processes.
We wanted to make sure that we took advantage of the deal because we plan on using the card to Travel to Europe, Stay at the Salt Lake Sheraton, and hopefully using the SPG Amex right before a cruise someday. It expires today, and who knows when it will come back around again.
Answering your Questions
Yesterday we had a reader ask us a question. She wanted to know if the points earned from a credit card sign up bonus could be retracted. I felt like it was a good enough question that everyone would benefit from the answer. Thanks for your question Melissa.
Some companies like Capital One have points that are only redeemable with that Capital One. If you got a C1 card then you would definitely have to use all of the points before canceling the card. They think that they have the best products and that their points are better than miles. The truth is that they give you 1% back that must be dedicated to travel. I don’t think that they have the best cards, but every once in a while they will come through with a great promotion.
I’ve never heard of anyone coming back for the miles that are accrued with another company. That is the whole beauty of this process. We can score tons of points and miles without paying a dime. Some card will require you to have an upfront annual fee, but just make sure that it is worth it to you.
Always remember that your credit is way more valuable than a $1000 sign on bonus. We always recommend that you are careful and make calculated decisions.
There are a few things that I would do to ensure that you never end up blacklisted by any of the credit card companies. Here are a few tips:
- Don’t cancel the card immediately after getting the points. This is a NO-NO for a couple of reasons. One, it significantly shortens your average credit history amongst all of your other accounts. Second, it could get you blacklisted.
- Once you’ve met the spending requirement- Make sure you don’t stop using the card completely. This also could get you blacklisted as they might see you as a promotional punk.
- Once your card is up for the annual fee you can call and tell them that you’re canceling the card. If they offer you a retention bonus, then it might be worth keeping the card for another year.
- Also you could request that they waive the annual fee for the second year. American Express hasn’t been known to do this, but other companies just might.
Anyone else have any questions about canceling a credit card? Let us know. We would love to answer your questions. Make sure that you “Like” WorldWanderlusting on Facebook so you don’t miss out on the hot deals.