The news spead like wildfire to all the credit card churners and bloggers alike. Is this the begining of the end? Many people are making assumtions that Chase is soon to follow suit. a once in a lifetime bonus will cripple the churners, but possibly be more profitable for the banks.
Although every business has their losses, churners were causing the banks a big loss. Netting every signup $300 or more, and usually signing up for more then one card, the banks got fed up. It was a bit over a year ago when American Express announced the change of their program to only allow sign up bonuses once a year.
All this good has came to an end as DansDeals has reported as well as MilePoint. It seems like starting May 1 all bonuses will be limited to once per lifetime of the card holder. This new rule has been said for consumer cards. At this time business cards are having conflicting reports.
All bloggers are up in arms about this. Here are 2 thoughts this author wishes to share.
1) Nothing is set in stone. Any company has the power to change it’s policies at anytime. In 6 months Amex might realize that it was not worthwhile for them to change to the lifetime rule. Many new consumers that had the 5 years ago, now are unwilling to apply.
2) I don’t think this policy will be strongly enforced. I feel that this rule is a back door. When they manually flag an abusive card member, they are able to withhold an bonus. They now have a solid backing why they don’t have to issue bonus points to abusive churners. In reality I feel that if you apply for a card 18 months after your last application, you willk still get your full signup. My backing for this logic is the current rule. Many card holders have reported that they got their points when they applied within a year.
In any case, it pays to sign up for the American Express cards today.
Amex has reported a new policy that they will issue once in a lifetime bonus. Our feelings are
1) this rule is not set in stone
2) It may not be enforced fully, rather used soley on abusive card holders.