Originally Posted by
ziggy29
That's what I'm weighing. I mean, because of the $100 annual bonus I'd get for having enough AUM at Schwab it would seem like an easy decision, as long as I could easily get another $595+ worth of benefits from it. And because of the first year bonus, I'm sure to come out ahead in Year 1. But if I don't get enough value out of it, not having a downgrade path means either continuing to pay the AF or canceling the card completely (possibly reupping for a vanilla Gold, for example). Basically, I have to decide between the $100 from Schwab *or* having the flexibility of an downgrade path. Is the ability to downgrade worth $100 a year to me? I'm leaning toward "probably not", but still in the process of thinking it through.
I'm not as worried about retention because I don't tend to play that game. Not judging those who do, I just find it personally uncomfortable.
Have you ever had the $250.00 Amex Gold? If you haven't, I wouldn't worry about the lack of a downgrade path with the Schwab Platinum. New account bonuses are normally better than upgrade bonuses, so you're better off getting the Gold as a new account, rather than downgrading the vanilla Platinum.
Also, discounting the signup offer entirely, have you run the numbers to see if you would benefit from the Platinum benefits, compared to the annual fee? When I applied for Schwab in 2018, I was in the middle of planning a trip to Paris and was getting ready to visit Ebay for a couple of Delta Sky Club passes, when Delta still offered them. Then I thought, "Hey, if I get the Platinum card, I'll get access for "free" and save myself real money." Then I looked at the other benefits, as a regular Uber user, and the Platinum made sense.
I would never redeem Amex MR points for cash, when travel provides outsized value, but Schwab offered the option to convert MR points at 1.25 cents per points (now 1.1), and I thought it would be a nice option to have, planning to keep the card long term.
I already have 5 Amex credit card products, am happy with my current setup, and can't get approved for a 6th card, so any future signup bonuses will come from Amex charge cards. Until recently, especially when interest rates were at historic lows, it was much easier, and justifiable, to get approved for the Morgan Stanley Platinum. I was already a happy Platinum customer, but figured another 60,000 MR new account bonus, along with a free authorized user, would be nice. In retrospect, I'm glad I applied, since Morgan Stanley has tightened the requirements, making approvals more difficult.
I looked at the signup bonuses for the Schwab Platinum and vanilla. Schwab is offering 100,000 MR points, with $6000 spend. The vanilla, on Resy.com, is offering 100,000 MR points for $6000 spend, AND 10X on all restaurant spend, up to $25,000 for 6 months. How much do you normally spend on restaurants, compared to the extra $100.00 you'll earn by getting the co-branded Schwab?
How do you feel about opening and closing credit/charge accounts? If Schwab doesn't make sense in year 2 or 3, are you OK with closing it? Would you be willing to burn another 5/24 slot to open a new Gold or vanilla Platinum, lowering your average age of accounts? Don't worry about feeling uncomfortable with retention offers. There is a difference between fishing for a retention offer, without intending to cancel, and fully intending to cancel but getting an offer. Based on many data points, the odds of getting a retention offer in year 2 are very high, regardless of whether you are fishing or not.
Apart from restaurant bonus, there is parity between the Schwab and vanilla new signup bonus, but, while the vanilla has been around since 1984, Schwab's partnership may not last forever, or they could make approvals more difficult. Personally, it is much easier to churn Chase, Citi, or BOA when they all offer a plethora of no-fee downgrade options. With Amex, all of your downgrade options involve paying an annual fee, so you may end up closing it anyway.
If, after analyzing the Platinum "coupon book" benefits, it makes sense to apply, go for it. I would get Schwab, with the intent that your keep the card long term AND earn a yearly $100 asset-based bonus. Of course, if you're planning a lot of restaurant spend in the next 6 months, getting the vanilla is a no brainer. Good Luck.