Miles and Points Travel

And the importance of HUCA

We talked quite a bit about this in a previous podcast episode, but I want to reiterate what an integral part this piece plays in your efforts to amass travel miles and points.

First, the retention offer-when your annual fee hits and you are not sure you want to keep the card, the first step is to reach out to the issuing bank, via call or chat. Let them know that you are thinking of closing your card because of the annual fee. They will respond with all of the card benefits, trying to keep you as a customer (as they should).

So how should you reply? Simply say you love the benefits, just not the fee. Then you can say “are there any retention offers for my account?” The agent should check and if you do, they will review them with you.

Some of the available offers might be:

• Annual Fee Credit-although rare, they may offer to waive the fee if you keep the card open for another year. Keep in mind if you cancel the card before that timeframe is over, they will charge the fee back and you’ll be on the hook for it.
• Bonus points or miles-this is the one you want. How many and how much is the variable, but it could be worth paying the annual fee and keeping the card open.
• Statement Credit-it requires you to pay the annual fee, but if the credit is appealing, it may be worth it.

Most of this strategy applies to card that carry a high annual fee, usually $250/yr or more. If you are only paying $99/yr, changes are slim that you will get an offer. Let’s face it, most cards with low annual fees are keepers anyway.

If you do not get an offer or one that seems worth it to you, you can tell them to keep the account open while you think about it. Then you HUCA! What is that? It means Hang Up and Call Again. One agent may say no offers, the next may magically find one. This is not always the case, but worth a try.

Lastly, there is always the option to product change. This process is when you stay within the same product family (earning a similar type of miles or points) but you drop down to a lower annual fee, or a fee-free card. Keep in mind that you will forfeit any welcome bonus on the new card, so it’s best to use this option only after you have done some research and you know what the current welcome bonus is that you’re giving up.

Knowing these little insider secrets can make a huge difference in how you acquire and accumulate your miles and points!