In a bizarre turn of economic events, it seems that credit card issuers are
now offering to compensate some consumers to pay down their debt and close their
accounts. American Express is giving select borrowers $300 to do so, and Citigroup is
proposing a debt-reducing credit for customers who agree to pay considerably
more than their minimum balance.
It’s an odd promotion for companies that profit from borrowers who pay
interest on outstanding debt. And, of course, it seems to be limited to credit
card holders who are carrying sizable balances—credit companies are trying to
haul in some of their risky loans, not so much the responsible consumers who are
paying their bills in full every month.
Paying down debt is always a good thing, of course, but closing an account
can hurt your credit score, since it lowers the amount of credit that’s
available to you.
Would you ever take cash to close down one of your credit accounts? (And how much would make it worth your while?)
No, because I only have ONE credit card. I need it for car rentals and hotels.
Maybe and it depends on the card. I would not close the card that I have held since college as it is the longest credit history I have. I would close one that I hold but don’t use, since my DH and opened a card together. So currently I have three and would only close one and the offer has to be right. 99% of the time only things that I can pay off at the end of the month go on the card, I use it for ease so I don’t have to carry cash, so I am probably not qualified for any of the programs anyway since I am responsible.
This is an interesting proposition. At first it perked my interest, but then when I thought about it, I don’t think I would want to close any of my credit cards at this time. My balances aren’t that high and I pay more than my minimum payment each month so I probably wouldn’t qualify anyway. Plus, in these hard times, its nice to know that I have a little credit available in case of an emergency.