Those in the habit of cyclically signing up for credit cards solely for the points may soon be out of luck thanks to a new strategy coming from American Express.
WHAT TO KNOW NOW
The practice of signing up for a credit card solely for the loyalty points might be going out of style if American Express has its way. Locked in a battle with Chase for premium credit card products, the bank is apparently concerned with the volume of freeloaders signing up for cards simply for the points — and then closing their accounts.
As a result of the so-called churners, American Express is raising annual fees (though it is including new perks), and states it plans to “surgically remove gaming and reinvest in higher-quality, more loyal new customers.”
Points churners will no doubt find greener pastures after American Express turns its back, but the question remains: What was the company expecting when it offered such healthy signup bonuses?
SOCIAL QUOTE OF THE DAY
Love my American Express Platinum card, but now they want a $550 annual membership fee!? No longer a good value proposition… #AmexPlatinum
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Photo credit: American Express is raising annual fees to discourage points churners. This October 4, 2016 photo shows a mockup of an American Express Platinum Card provided by the company. Patrick Sison / (AP Photo/Patrick Sison)