AMEX Paying Card Holders To Close Their Accounts

Here's one you don't see everyday...American Express is paying Card Holders to close their Accounts. AMEX is notifying a select number of cardholders that they will pay them $300 to pay off their balance and close their account. AMEX will send these folks a $300 prepaid AMEX card. No, this is not another Internet rumor.

Molly Faust, AMEX spokesperson, had this to say: "We sent the offer out to a select number of card members. We are looking at different ways that we can manage credit risk based on the costumers overall credit profile."

This new AMEX strategy was brought about by skyrocketing delinquency rates and you can rest assured that the majority of folks who get this offer are on the fringe of
their acceptable credit profiles. The vast majority of comments we have seen so far center on the fact that AMEX is not lowering the balanced owed by $300 (imagine that).

If you received one of these offers, please be aware that closing credit card accounts does have the potential to lower your credit score somewhat IF it shows as being closed by the credit card company. Make sure that it shows in your credit file that YOU closed the account. Other than that, more power to you and enjoy that $300 (IF and WHEN you get it).

American Express: Please Leave Home Without It.