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I got an offer in the mail from American Express that if I open a credit card and spent $500 by Feb 28 2010, I will get 50,000 points which is equivalant to $500. It does have a $175 annual fee which is vaived for the first year.

So I can open the card and spend $500, utilize the 50,000 points and then close the card after 10-11 months (before the $175 annual fee kicks in)?

Has anyone does that before?

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Has anyone converted this card to some other (no fee) card after a year?

amitgu (Oct. 13, 2010 @ 3:39p) |

I called up a few months ago and was told I wouldn't be able to. I don't recall the reason, but I remember asking speci... (more)

monto888 (Oct. 13, 2010 @ 3:46p) |

So you ended up just getting the card cancelled?

amitgu (Oct. 13, 2010 @ 3:51p) |

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Sure you can do that.. Any link you care to share with us?

All the time, if you think you qualify go for it. Just convert it to a free card after a year rather than close it.

cme4oil said: Sure you can do that.. Any link you care to share with us?

I got the offer my snail mail (not e-mail). It does say I can apply online. Don't have the letter with me right now. Will post the link later.

amitgu said: cme4oil said: Sure you can do that.. Any link you care to share with us?

I got the offer my snail mail (not e-mail). It does say I can apply online. Don't have the letter with me right now. Will post the link later.


Please do, thanks!

Those offers are targetted, not meant for mass consumption. Also, be careful about the annual fee. I thought it would be higher for a bonus like that. Also, they may charge you the amount at the beginning of the year and not after your first year is over. I've seen an offer like that addressed to me and the terms made a seemingly great deal much less appealing.

cme4oil said: Sure you can do that.. Any link you care to share with us?These types of offers always have a unique invitation number, so they can only be used by the recipient thereof.

OP, it's a great offer but be sure to look at the type of card that you are being offered. If, for instance, you are being offered AMEX's Delta Reserve or the Platinum card, they both come with, I believe, a $450/year annual fee, which AMEX has been reluctant to prorate lately for early cancellations. Hence, in that case, all that this offer would get you is a free year, which may or may not be worth it to you.

If, however, you are being offered 50,000 points to accept AMEX's Gold card with $125/year fee (or especially if you get the points and your first year is free), then it's a much more decent offer.

turrdog said: Also, they may charge you the amount at the beginning of the year and not after your first year is over.If an annual fee applies, they ALWAYS charge it at the beginning of the year. AMEX used to prorate the fee for early cancellations, but have been reluctant to do so lately.

turrdog said: Those offers are targetted, not meant for mass consumption. Also, be careful about the annual fee. I thought it would be higher for a bonus like that. Also, they may charge you the amount at the beginning of the year and not after your first year is over. I've seen an offer like that addressed to me and the terms made a seemingly great deal much less appealing.
A couple of years ago, my wife and I took advantage of offers for 50K bonus rewards points from AM*X for their personal Gold Rewards card. The annual fee ($125, IIRC) was waived for the first year, and we cancelled the cards before the second year. We had no issues. The only thing you have to be careful about is that if you close the cards, you have a limited time period to redeem your rewards points. We had enough points from the 50K points and other bonus points offers we took advantage of (business gold cards, Platinum card -- the latter w/no fee waiver, however) to cancel all of our AMEX charge cards except our platinum cards. Those platinum cards were converted into less expensive AM*X green cards.

Well even if they charge you $175, you still made $325 profit.

My wife also got this offer, so he is not mistaken on the details.

largeeyes said: My wife also got this offer, so he is not mistaken on the details.Right, AMEX has been making these types of offers for years. As always, the question is what type of card you are required to accept as a condition of this offer. If, for instance, you must accept a card with a $450/year fee, the offer isn't particularly attractive, unless, of course, you want to have that card for a year. If, however, the offer is on a card with a waived first year fee or a relatively small fee, then it obviously becomes a lot more attractive.

I did this offer two years ago. It was easy. Just used the $500, converted to Blue at my leisure (before the 12 months were done). By what the OP is saying, this is the gold card with first year fee free. It is a pretty cut and dry good use of an inquiry.

geo123 said: largeeyes said: My wife also got this offer, so he is not mistaken on the details.Right, AMEX has been making these types of offers for years. As always, the question is what type of card you are required to accept as a condition of this offer. If, for instance, you must accept a card with a $450/year fee, the offer isn't particularly attractive, unless, of course, you want to have that card for a year. If, however, the offer is on a card with a waived first year fee or a relatively small fee, then it obviously becomes a lot more attractive.
We thought our personal Platinum charge card offers for 100K bonus points each (after some spending goal by X date had been met) were well worth the AFs.

geo,

as I said, his details are correct. It's the $175/yr Gold Rewards Plus card.

I also got gold card offer last years for 25k points. I am planning to cancel the card but still not finding good gift cards to spend the points.

rustum said: I also got gold card offer last years for 25k points. I am planning to cancel the card but still not finding good gift cards to spend the points.I use these points to transfer them into frequent flyer miles, usually with a bonus (bonus offers come out periodically throughout the year). You do have to pay some tax on the transfer but it's tiny. Depending on your travel pattern, frequent flyer miles can be worth a lot more to you than gift cards.

ok here are all the details about the offer I received.

Its for Premier Rewards Gold Card and the membership fee is $175 which is waived for the first year. I will get 50000 points if I spend $500 by Feb 28 2010. There is a link to apply online using www.AmericanExpress .com/newgoldcard but there is a unique RSVP code. Its a targeted offer.

Thanks for all the replies. I will apply for this and change to a different card within the year.

amitgu said: ...It does have a $175 annual fee which is vaived for the first year....

To answer everyone's "what if" scenarios.

rustum said: I also got gold card offer last years for 25k points. I am planning to cancel the card but still not finding good gift cards to spend the points.

The only two are Restoration Hardware and Home Depot ($500 cards). You can move the points into miles as well, but the gift cards will be a better deal IMO.

The points take a while to show up, which is sort of annoying (they haven't shown up yet, so I'll miss the xmas shopping season).

geo123 said: turrdog said: Also, they may charge you the amount at the beginning of the year and not after your first year is over.If an annual fee applies, they ALWAYS charge it at the beginning of the year. AMEX used to prorate the fee for early cancellations, but have been reluctant to do so lately.

Per the OP the fee is waived for the first year. Are you saying AMEX will charge the fee for the second year upfront and not refund it if you cancel in the first year?

BrlDsguise said: geo123 said: turrdog said: Also, they may charge you the amount at the beginning of the year and not after your first year is over.If an annual fee applies, they ALWAYS charge it at the beginning of the year. AMEX used to prorate the fee for early cancellations, but have been reluctant to do so lately.

Per the OP the fee is waived for the first year. Are you saying AMEX will charge the fee for the second year upfront and not refund it if you cancel in the first year?

He meant that AM*X charges the AF at the beginning of the year it pertains to.

Interesting card.

$175 annual fee

3x points airfare
2x points gas/groceries
1x everywhere else

15,000 bonus points per year when you spend $30k in a year

In essence, the annual fee minus $25 is refunded if you use it as a daily spender...I've seen worse offers recently.

My wife got the offer last year. 50K points showed up in reasonable time after meeting the offer requirements.

The rewards are actually a really powerful currency and I wish I had them now for my upcoming travel - but the one year was up and I had to cash them out.

- Used part of the membership rewards to augment my Hawaiian airmiles to get free tickets to Hawaii
- Converted some to Priority club for a 20% bonus and meeting their "4 transaction" promo (no longer active)
- Could badly use them NOW to convert to hilton Honor points.
- Converted to Kohl's and Home Depot gift cards just a few days before the year up. Kept the reward points as long as possible for the flexibility.

By the way, one thing to remember - their posting of reward points for purchases is a long cycle. Make the purchase, you get a statement. After you have made the point and the next statement is generated, then you get the points. So almost at least a 45 day cycle before you get the points. If you are making purchases to reach the next tier to clean out the points, then watch out this long cycle.

PrincipalMember said:

<snip>

By the way, one thing to remember - their posting of reward points for purchases is a long cycle. Make the purchase, you get a statement. After you have made the point and the next statement is generated, then you get the points. So almost at least a 45 day cycle before you get the points. If you are making purchases to reach the next tier to clean out the points, then watch out this long cycle.

The way it worked for me is that the terms of the bonus offer stated that I had to spend $500 by a certain date and said something such as: "Please allow x - y weeks for the bonus points to post to your account." Even though I met the spend requirements, IIRC, AMEX based the x - y weeks on the deadline, not when I fulfilled the requirement.

glxpass said: PrincipalMember said:

<snip>

By the way, one thing to remember - their posting of reward points for purchases is a long cycle. Make the purchase, you get a statement. After you have made the point and the next statement is generated, then you get the points. So almost at least a 45 day cycle before you get the points. If you are making purchases to reach the next tier to clean out the points, then watch out this long cycle.

The way it worked for me is that the terms of the bonus offer stated that I had to spend $500 by a certain date and said something such as: "Please allow x - y weeks for the bonus points to post to your account." Even though I met the spend requirements, IIRC, AMEX based the x - y weeks on the deadline, not when I fulfilled the requirement.


My comment was with regards to the regular points that you earn after the initial period. Let us say, you have 2300 points left in the account and you want to close the account. Since 2300 points is not enough to redeem a gift card, you may want to get additional points by charging $200 to this card before you close the account. Don't be charging it 15 days before the anniversary date and expect the points to show up before you close the account! If you don't plan it right, then you lose the 2300 points (if it makes you think better, think of them as $23).

[The reason I ended up with an odd amounts like 2300 point is that I used the membership rewards currency to reach an award on Hawaiian Airlines. Transferring any more than what was required for a ticket was a wasted points].

PrincipalMember said: glxpass said: PrincipalMember said:

<snip>

By the way, one thing to remember - their posting of reward points for purchases is a long cycle. Make the purchase, you get a statement. After you have made the point and the next statement is generated, then you get the points. So almost at least a 45 day cycle before you get the points. If you are making purchases to reach the next tier to clean out the points, then watch out this long cycle.

The way it worked for me is that the terms of the bonus offer stated that I had to spend $500 by a certain date and said something such as: "Please allow x - y weeks for the bonus points to post to your account." Even though I met the spend requirements, IIRC, AMEX based the x - y weeks on the deadline, not when I fulfilled the requirement.


My comment was with regards to the regular points that you earn after the initial period. Let us say, you have 2300 points left in the account and you want to close the account. Since 2300 points is not enough to redeem a gift card, you may want to get additional points by charging $200 to this card before you close the account. Don't be charging it 15 days before the anniversary date and expect the points to show up before you close the account! If you don't plan it right, then you lose the 2300 points (if it makes you think better, think of them as $23).

[The reason I ended up with an odd amounts like 2300 point is that I used the membership rewards currency to reach an award on Hawaiian Airlines. Transferring any more than what was required for a ticket was a wasted points].

That's what I get for not proofreading my post properly. Sorry about that. I meant to quote the statement:

PrincipalMember said: My wife got the offer last year. 50K points showed up in reasonable time after meeting the offer requirements.
I snipped in the wrong place.

There was a similar thread about this earlier in this month. See sleepybum's scan of the offer letter. This is definitely targeted.
http://www.fatwallet.com/forums/finance/957828/
http://s.fatwallet.com/static/attachments/23416_amexpremierrewardsgold.gif

Yes, this is a targeted offer with sign up code but a great deal if you got one. My wife got this offer last year for a Gold reward card with the 1st year membership fee waved. Signed her up, spent the $500 and got 50000 points and got $500 gift cards (mostly restaurant cards). Call and cancel it before the the end of the one year term with no problem. I got the same offer this year, signed up and got $500 Home Depot gift card. I will try to convert it to a no-fee card when my 1st year ends.

I did this last year for 50K points with their AMEX Gold card. I ended up buying a laptop with the card for the extended year. Does anyone know if you switch over to the Blue card (without a annual fee) do I still have the extended warranty coverage that came with the AMEX Gold?

Its a useful tool, I ended up using it with my Mastercard when my previous laptop stopped working. Anyone have a better understanding of the terms of the extended warranty?

Pakman0209 said: I did this last year for 50K points with their AMEX Gold card. I ended up buying a laptop with the card for the extended year. Does anyone know if you switch over to the Blue card (without a annual fee) do I still have the extended warranty coverage that came with the AMEX Gold?

Its a useful tool, I ended up using it with my Mastercard when my previous laptop stopped working. Anyone have a better understanding of the terms of the extended warranty?


what did AMEX customer service say when you called them?

mannyv said: The only two are Restoration Hardware and Home Depot ($500 cards). You can move the points into miles as well, but the gift cards will be a better deal IMO.Depends on your situation. I get all the gift cards that I need through Dealpass at 20% off, so I don't consider using points to get gift cards a good deal. If you do not have access to any of the Dealpass programs, then your opinion will obviously be different.

As for miles, it also depends on your travel pattern. I typically convert points into Delta miles, which I then use to fly to Canada, as it takes the same number of skymiles to fly to Canada as it does to fly domestically. Hence, if I just redeem them for coach flights, the value of skymiles is about 1.5 to 2 cents per mile, which is substantially higher than the value of the gift cards. If I redeem skymiles to upgrade to first class, the value is way higher than that but is somewhat difficult to estimate, since I'd never pay the full price of a first class ticket out of my own pocket.

My girlfriend received this offer a few months ago. She didn't want it so I applied using her invitation. Even though there was nothing on the online application associating it to her, it was in their system. Ended up having to contact AMEX by phone and they said they needed to speak to her. After speaking to her, they removed her from the application and processed the application in my name. Received the card back in September, spent the $500 and received the 50 k points. No annual fee has been charged.

American Express has raised their interest rates a great deal. I don't leave a running balance on my card, but in Oct. I paid the wrong amount and left $35 on my account. My November account reflected this mistake... by showing me a new 27.99% interest rate! I wouldn't get a credit card before 1/1!

I applied for the card online and was approved. It just said I was approved and didn't say anything about the credit limit. So I guess I will have to wait for teh card to arrive for that.

Here is an interesting one. My wife had received the offer and the account was in her name. Once the year was up, we decided to cancel the account. I used my credit card number and they talked to my wife. But then they canceled only my card and kept the account alive. When I logged into my account, I did see the thing as canceled and but to my surprise, I received a statement with the annual fee. Grrr - now we have to call these guys again.

So just beware - if you cancel and then a statement still shows up, these idiots might have canceled only of the cards to trap you in late fees on the annual dues or automatically withdraw from your checking account.

I'd like to sign up to be targeted for this...

got the offer, applied, received and activated the card. none of the paperwork that came with the card mentioned the 50,000 bonus points. I saved the invitation which mentions the points but just wondered if that is how it went for anyone else that got the offer.

yeah i received the offer myself. I previously cancelled all my AX cards back in 2006 and they sent me this offer last week. I am considering taking it even though I still hold a grudge against them.

Skipping 43 Messages...
So you ended up just getting the card cancelled?
monto888 said: amitgu said: Has anyone converted this card to some other (no fee) card after a year?I called up a few months ago and was told I wouldn't be able to. I don't recall the reason, but I remember asking specifically about Blue or another no annual fee card



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