Solutons Lounge

A how-to on getting a retention bonus from your credit card company


Have you contacted your credit card company yet to ask for a retention bonus?

I wrote about retention bonuses in a recent newsletter – they’re bonus points or annual fee waivers given to loyal and valued cardholders who ask for them. That’s the thing about retention bonuses – you have to ask.

Peter Hambly, a newsletter subscriber from Hanover, Ont., read the post about retention bonuses and decided to ask for a waiver of his annual fee of $120 plus $50 for a spousal card. It worked. “In appreciation of your relationship with us, we will reverse the annual fees you will incur on June 30, 2024 as a one-time exception,” his card issuer said in an e-mail.

Let’s look at Mr. Hambly’s story in a bit more detail because it may help clarify what it takes to qualify for a bonus. Mr. Hambly said he’s held a credit card from this particular issuer since the mid-1970s and spent more than $275,000 on it over the previous four years. You don’t need to be as loyal and avid a customer as this to get a retention bonus, but you do need to imagine whether your card company would feel regret about a competitor scooping up your business.

Mr. Hambly didn’t threaten to cancel his card, but he did say he and his wife have been looking at other options. “You give out extra rewards to new cardholders, so let’s do the same for a good customer,” he wrote in his e-mail to the bank.

That’s so well put. Card issuers shower new clients with bonuses, while taking existing clients mostly for granted. Retention bonuses are how existing clients even the score.


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Rob’s personal finance reading list

A dream trip, gone in 60 seconds

I cannot say this strongly enough: Never give out your personal banking info on the phone or in response to an e-mail or text. The risk of being scammed is serious enough to warrant this blanket statement. Here’s how scammers conned an Ottawa couple out of $10,000 put aside for a six-month trip around the world.

Life in rental hell

The latest in Toronto rental horror stories – a basement corner that goes for $500 per month, including bed, night table and lamp. Now for some good news for renters: Toronto rents are edging lower.

Caskets from Costco

A detailed rundown on the costs and benefits – and disadvantages – of a Costco membership. News to me: You can buy a casket at Costco now for as little as $1,099.99.

No-buy January: A final accounting

A young person from New York on her successes and challenges in trying to buy nothing beyond essentials in January. Useful insights here on what works and doesn’t work in trying to live a more frugal life.


Ask Rob

Q: I am thinking of opening a first home savings account and investing in an exchange-traded fund. I hope to buy a place in five years. With a shorter investment window, how should I balance my investment between income and equity?

A: On the principle that homebuying can happen on an accelerated time frame, I’m going to suggest keeping your FHSA 100 per cent safe in either an investment savings account or high interest savings account ETF. Both are designed for investment accounts and hold all or mostly bank deposits that deliver after-fee returns between 4.55 and 4.9 per cent these days. This rate will go down when and as the Bank of Canada lowers its overnight rate, but you’re 100 per cent safe from losing money in the stock or bond markets. If you prefer a more aggressive approach, how about 75 per cent ISA or HISAs and 25 per cent stocks?

Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.


Tools, explainers, guides and charts

A credit counselling agency’s take on private mortgages, which are an option for people unable to get a mortgage through conventional lenders.


The Money-Free Zone

A reader suggestion this time: All Those Things, by the New Zealand singer-songwriter Barry Saunders. I really like this song. World weary vocals and an arrangement featuring a triple threat of guitar, accordion and horns.


Watch this

A video in which grocery prices in Mexico are compared to Canada. Lots to chew on here.


On social media

A simple guide to how your credit score is calculated.


In case you missed these Globe and Mail personal finance-related stories


More Rob Carrick and money coverage

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