Here's What Happened When I Asked Amex for a Retention Offer

I'm a big fan of rewards credit cards. I like to take advantage of the value-packed benefits many card issuers offer and earn rewards by spending with my cards. But not every card will meet my needs forever. Recently, I considered closing one of my American Express cards because I wasn't getting as much value out of it as I had planned. Here's what happened when I contacted Amex to see if they had a retention offer.

Retention offers can be a win for your wallet

Credit card issuers want to keep as many customers as possible. When you cancel a credit card, your card issuer no longer has the opportunity to make money off of you. If you contact your credit card company and tell it you're considering canceling your card, it may give you a retention offer as an incentive to keep you as a customer.

Retention offers vary, but here are some examples of such offers:

• Discounted annual fee or waived annual fee
• Statement credit
• Bonus points, miles, or cash back offer

You can call the number on the back of your credit card to see if a retention offer is available. If you accept a retention offer, you'll agree to keep your account open in exchange. However, it's worth noting that not every card issuer will extend a retention offer so you may be told, "no."

Amex didn't have a retention offer for me

What was my experience? The credit card I was considering closing had been opened two years earlier. While I used some of the benefits and earned rewards with the card, I didn't love the annual fee being charged. So, I asked Amex if they had a retention offer. The company told me there was no offer to extend. While I would have preferred to get a discounted or waived annual fee, I ultimately decided to continue to pay the fee and keep the card for another year.

What to consider if you don't get a retention offer

If you don't get a retention offer, you'll have to decide whether to keep or cancel your credit card. What should you do if your card issuer doesn't extend a retention offer? You should consider the following to decide if the card is worth keeping in your wallet:

• Annual fee: Determine if you can afford to pay the annual fee. If the fee is too pricey, you can ask your card issuer to downgrade it to a no annual fee card. Canceling a credit card can alter the age of your credit history and could reduce your credit score, so this is an excellent alternative to canceling your card.
• Benefits: You'll also need to decide if the card benefits offered are valuable to you personally. If you're not using many of the perks provided, it may be time to say goodbye. But if you find them useful, you may want to continue to keep the card.
• Rewards potential: You should also consider the rewards potential the card offers and whether the rewards you've been earning are worth more than the annual fee charged.

Don't forget to ask for a retention offer before canceling a credit card. You may not get one, but you'll never know unless you ask. Only you can decide whether a credit card meets your needs or if it's time to find a different card. If you're ready for a new credit card, check out our list of the best rewards cards to learn more.