5 Ways To Trigger More Offers From Your Bank Using Your Credit Card
Banks and credit card issuers have real motivation to get as many consumers as possible using their cards and to spend as much as possible on financial products.
Every time you make a purchase using a credit card, your bank earns a small fee as the acquiring bank in the transaction. With this fee the bank can pass on a reward to you as the customer — generally in the form of frequent flyer miles or gift cards.
For the banks it becomes a game of how often they can get you to use their credit card. The more often and the larger the purchases — the more money they generate. With this in mind, banks want to encourage you to spend more frequently, and to achieve these goals banks pro-actively hand out incentives to it’s customers. Some of these offers can be extremely lucrative, and knowing how to trigger these deals is becoming a fine art.
There are secret paths to expedite these offers and we’ve compiled a list of 5 popular techniques to getting these special deals.
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1. Spend the right kind of money
Spending $1000 at the grocery store will earn your bank less than $10 in merchant acquisition fees because the amount the grocery store pays to accept your credit card is such a low percentage of the transaction. However, that same $1000 spent on an international website will attract a currency conversion fee and your bank will earn as much as $30 from the same transaction amount. Some card issuers will shower you with bonus points or extra frequent flyer miles for these purchases.
Another example of the right type of money to spend is by shopping with high value merchants. If you’re consistently spending at high end retailers like Mont Blanc or BMW — the bank will begin to flag you as a customer with money to burn — someone they want on their books. With this will come special perks and invitations.
2. Accept a balance transfer offer
Banks regularly run ongoing balance transfer deals (especially on new card signups), and while some are offers can be more attractive than others, they generally range from 0–10% for a 12 month transfer. Why would you take up this if you don’t have a balance to transfer? Simple — by accepting a Balance Transfer, you are giving the bank the opportunity to prove you are a good credit risk and that you’re a responsible consumer who consistently pays their bills. When the balance transfer time ends — if you've paid it off in full — expect this to trigger another offer.
3. Carry a balance on your card
If you intentionally keep a running balance on your card (ie: don’t pay off the entire balance each cycle) — AND — you pay more than the minimum required amount each month, this is an additional proof point to the bank that you’re a good customer. Not only are you servicing the debt and showing you’re credit worthy; you’re also giving free money to the bank.
Banks like when you give them money and will often shower you with offers to ensure you continue carrying a balance and servicing the debt. (Note: Please consider your own financial position before embarking on this — if you can’t afford the debt — you should not consider this option).
4. Use one bank to pay another bank
Paying your credit card off in full with a transaction account another another bank can be a great idea.
Banks regularly filter your data through analysts, machine learning tools and ‘big data’ silos which essentially science the heck out of you and your spending patterns to figure out ways to make you spend more by learning about your habits and who you do business with.
Show your bank you’re doing business with the competition by paying another banks credit card with your banks transaction account. Essentially — your bank will see $xx/month being paid to a competing credit card. At some point this will trigger an offer because your bank knows they don’t have 100% share of your wallet.
5. Call your bank, talk to a real person
Throwback to the 1990’, jump on the phone and do things the old fashion way. Occasionally, some banks have deals that are only available when you call up or visit a branch in person.
Quite often, bank staff are incentivized to sign up new customers or sell existing customers into new products. You can take advantage of this by leveraging your relationship with the bank to have staff go through every little trick in the book to find a good deal for you. After all — they might be getting closer to a bonus or monthly quota to fulfil through walk in customers.
Finally, it’s important to keep in mind that banks exist to make money. If you’re a good customer with a solid track record that generates revenue for the bank through fees, interest charges, merchant acquisition revenue or even through home loan/mortgage interest — you are a prime candidate to be offered more deals. Banks want to make more money; so let them make you an offer you can’t refuse!
