How to Request a Retention Bonus for Your Credit Card
Signing up for new credit cards is a popular strategy among points and miles enthusiasts to earn rewards. However, once the annual fee hits, many people find themselves in a dilemma. Should they keep the card or cancel it? Thankfully, there is another option: requesting a retention bonus from the bank. By doing so, you may be able to receive a nice chunk of points or a statement credit simply by renewing your credit card for another year.
Before diving into the details of how to request a retention bonus, it’s important to understand the purpose of the call. The goal here is not to simply ask for free points or statement credits. Remember, banks make money because of the business you offer. The purpose of your conversation is to request an incentive or a retention offer to keep your business.
When making the call, it’s crucial to prove your value as a customer before asking for a retention offer. Explain to the representative how you are a customer in good standing and outline any problems or shortcomings you have noticed with the credit card. The more specific and genuine your concerns, the more likely you are to receive a positive response.
During the call, it’s best to keep it short and sweet. Most banks have retention departments with set budgets, so laying out your case in a succinct manner is important. Prepare a few talking points in advance to help you clearly make your point.
If the first representative is unable to help you with a credit or extra points, don’t give up. Hang up and call again (HUCA) is a common tactic. Politely end the call and try calling back at a later time. Sometimes, a different representative may be more willing to offer a retention bonus.
Having a script prepared can also be helpful during the call. It’s important to structure your conversation in a way that highlights your concerns and prompts the bank to offer you a retention bonus. Here’s an example script:
Me: Hi, I just logged into my account and saw that the annual fee was charged to my card. I’ve been a customer with [insert bank name] for over 10 years now. However, I’m not sure about whether I should renew this card for another year.
Rep: May I know the reason why you’re considering this?
Me: Yes, while I love benefits X and Y, I just read that benefits A and B are being reduced. Also, I’ve changed my travel patterns, so I’m no longer in a position to fly with Airline C. As a result, I’m not able to fully utilize the rebates and credits on offer.
After expressing your concerns, the representative may offer you a retention bonus. It’s up to you whether you want to accept the initial offer or negotiate for a better one. Politely ask if there’s a better offer available if you’re looking for a more favorable deal. In some cases, banks may be willing to provide a better retention bonus.
Retention offers can go a long way in alleviating the burden of a high annual fee credit card. While not all issuers may provide a retention bonus for their products, it’s always worth asking for the best possible offer for your credit card. Have you received a retention bonus on your credit card recently? Share your experience in the comments section.
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