Winning the credit card game

So a few weeks ago in my other blog, I wrote a piece about how people don't ask enough of their credit card companies. I realized, as I was writing it, that I was one of those people. I have been known to sign up for mileage cards that waive the first year fee, but I usually cancel them before the fee kicks in, once I receive the bonus miles. My primary credit card, though, is an Alaska Airlines Visa card from Bank of America that gives me a mile per dollar spent, as well as a companion certificate each year and a few other perks. For this, they charge me $75 each year, and I earn about 25,000 miles (slightly more than a free ticket).

This week I began to look for alternatives. I value 25,000 miles at about $250-$300, so after the fee, this was about $200. Capital One offers a "No Hassle" card that gives you 1% cash back, plus a 25% bonus at the end of the year, which would mean $300 cash, which seems like a better deal. I had some bargaining power.

So I called up Bank of America, ready to use it. I planned on saying that I wanted to cancel my card, and when they asked why, I would say that "it wasn't worth $75/year to me," at which time they would offer to waive the fee. The plan worked to perfection. It was basically as easy as calling up and getting an account balance. At the end of the conversation, the operator even asked if there was anything else she could do for me. What great service! I now recommend that anyone who pays an annual fee for their credit card follow suit. (Editor's note: They may like me more than most customers, since I've been loyal and always pay on time.)