This article by Travel on Points caught my attention. In the miles and points space, we make sure that we meticulously track credit card application rules, so that we can maximize welcome bonuses when they become available. However, after having a look at this, I feel that Amex may be setting a trap here. What’s going on? Let’s have a look.
Amex offering unique bonuses
If you’ve been the miles and points game for long enough, you must be familiar with bonuses for upgrading cards. Similarly, I’ve covered extensively almost all of my interactions while getting retention bonuses from a card issuer. Card upgrade bonuses make a ton of sense if you’ve already had a card in the past and are getting another welcome bonus for upgrading, especially in cases where an issuer restricts customers from earning the welcome on the same card again and again.
So, what’s going on here? Travel on Points has shared data points and examples of how Amex is now offering points to downgrade a product.
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Delta Reserve to Delta Blue downgrade offer
- Earn 10,000 bonus Delta Skymiles after you spend $2,500 or more on purchases on your Delta SkyMiles® Blue American Express Card account
- The spend must be completed within 6 months of accepting the offer
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Amex Platinum to Amex Gold downgrade offer
- Earn 25,000 Membership Rewards after you spend $2,000 in three months
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Amex Platinum to Amex Green downgrade offer
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Earn 15,000 Membership Rewards after you spend $1,000 in three months
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A Possible Trap?
Now why do I think that this is a trap? If you’re like me and frequently apply for credit cards, then this will affect you? Why? It’s because of Amex’s ‘once in a lifetime’ bonus rule. As per Amex’s terms and conditions, they will deny you a card product if you currently have a card or have attained the bonus in the past. In reality, multiple data points have hinted that this ‘lifetime’ is somewhere between a 5 to 7 year period.
Also, in certain cases, Amex has enforced ‘family’ lifetime bonus rules. In such cases, Amex will deny you the card and the bonus if you currently have or have received a welcome bonus for a card in that ‘card family. Here’s an example of the Amex Gold card.
You may not be eligible to receive a welcome offer if you have or have had this Card, the Premier Rewards Gold Card, the Platinum Card®, the Platinum Card® from American Express Exclusively for Charles Schwab, the Platinum Card® from American Express Exclusively for Morgan Stanley or previous versions of these Cards. You also may not be eligible to receive a welcome offer based on various factors, such as your history with credit card balance transfers, your history as an American Express Card Member, the number of credit cards that you have opened and closed and other factors. If you are not eligible for a welcome offer, we will notify you prior to processing your application so you have the option to withdraw your application.
Making a Choice
Does it make sense if you’ve had the Gold card in the past and want to downgrade? Well, that depends on your situation. Bear in mind that once you upgrade or downgrade to any product, the lifetime rule immediately applies. Also, the card family restrictions also apply depending on the type of card you’re downgrading to.
The Pundit’s Mantra
In summary, if you’re seeing on of these offers, I’d advise that you think twice before jumping the gun. You may be falling into a trap, locking yourself out of a welcome bonus for a card or a card family for the next 5-7 years.
Have you received any of these offers? Tell us in the comments section.
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