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Amex offering $300 to close your account

Posted by Tracy Becker in Credit Basics on March 7, 2009 | no responses

 

American Express,New York based, is extending their generosity and support to help “you”, meaning an invitation only for a select few, to “simplify your finances”. The offer outlined:

- Customer received an invitation with a RSVP code by mail or email.

- Customer is offered $300 in the form of a prepaid card if they accept the offer.

- Offer must be accepted by Feb. 28, 2009.

- Condition is the customer must pay off full balance on account before April 30, 2009.

- If the balance is not paid off by the deadline they will still close the card and customer will not get the $300 prepaid card.

Here is a link to view the AMEX offer:

What it seems to indicate is Amex is afraid these consumers are going to default and want to give incentives to get paid before it’s too late. Cleary this is a more positive way of pushing you to close your account. Many creditors at present close accounts without much advance notice. If this works well for Amex you can be sure to see more creditors using this method as well.

If you get this offer consider yourself a high risk consumer. If possible, reduce balances down to 30% of the limit and don’t close or open accounts for a good 12 months. Try paying your bills “IMMEDIATELY” rather than on time. This should get you out of the high risk category and reduce the chances of other accounts being closed or limits being reduced.

If you cannot pay your balances down and you are having financial problems please look into other options.

-Debt Consolidation Companies
-Bankruptcy
-Loan modification
-Refinancing on a mortgage for a lower rate to reduce your monthly payment.
-If you have value in your home you may consider cashing out to pay off debt.
-Debt Negotiation (depending on your current credit status).
-There are other options that may be more suited to your situation.

When your balances are high or you are late on a payment you may find your creditors hike up your interest. They can do this even if you were late with another creditor.

If you need further info about your options feel free to email or call us for more detailed advice with your specific needs in mind.



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