Reply To: Post your American Express Platinum retention offers here!

[Supergers49]

JDB wrote:

Reports would suggest that those who took up the jumbo welcome offer in late 23 / early 24 have been particularly favourably treated and the same is happening for those who only signed up in November 24 but are already getting retention offers of up to 75k! Bonkers but true.

It truly is bonkers, and doesn’t make much sense to me. I’ve had a couple of retention offers over the last 3 years and spend nowhere near the sums being quoted in this thread.

Many years ago (2005 – 2007) I worked for Capital One and though I am simplifying slightly, then had two products; (1) a 24.9% Sub-Prime card, and (2) a 6.9% Uber-Prime card. They made no money at all on the 6.9% customers, they never went into debt, never paid interest or fees, and those that did – the interest charges didn’t cover the costs associated with it. However, Capital One wanted the book because it balanced the overall portfolio and lowered their cost of borrowing… thereby making the Sub-Prime cards more profitable.

I was wondering if that might be why Amex is so keen (almost irrationally so) to retain Amex Plat cardholders as it balances the portfolio and lowers their overall cost of borrowing… even if the rest of their portfolio is still full of relatively Prime customers, Amex Platinum customers may be helpful for them.