As we wind down a strong credit card sign up bonus year, there may be a possible shift in the industry.
Avery from DCTA recently wrote a post about How Ontario’s New Law Could Ruin it All, along with my post Ban on Expiry of Loyalty Miles and Points Has Passed in Ontario. I think it’s safe to say that we are both worried about devaluations coming down hard. Which means that we may need to change up our strategy again.
Retention bonuses are a great way to help justify the annual fee that you will need to incur every year. Ideally, you would sign up for a credit card that waives its first year fee, collect the sign up bonus, and then decide whether to keep the credit card when you are entering the second year and the annual fee kicks in. One incentive is a retention bonus, which is a bonus offer issued by a credit card company to entice you to retain the credit card, rather than cancelling it. Generally, you want a retention bonus that will help you cover the annual fee.