I had a call from Amex with an interesting offer. If I would reduce my credit line in half they would give me a $2500.00 credit. If I would pay it off they would give me a $5,000.00 credit. He used the magic number of a 7% refund of my reduction. They will also give me a guaranteed credit limit which is half of the amount it is reduced by. So $40k becomes a $20k credit line if paid off.
The new strategy for those of us who persistently keep their lines in use to avoid a credit line reduction is to pay you to reduce it. Now I can't say I won't do it, because if they offer me more money, I probably will. What offers are you other guys seeing?
I had a call from Amex with an interesting offer. If I would reduce my credit line in half they would give me a $2500.00 credit. If I would pay it off they would give me a $5,000.00 credit. He used the magic number of a 7% refund of my reduction. They will also give me a guaranteed credit limit which is half of the amount it is reduced by. So $40k becomes a $20k credit line if paid off.
The new strategy for those of us who persistently keep their lines in use to avoid a credit line reduction is to pay you to reduce it. Now I can't say I won't do it, because if they offer me more money, I probably will. What offers are you other guys seeing?
wait, i'm confused. Do you maintain a balance with AMEX and they're saying that they want you to pay it off and they'll basically pay part of it off for you?
Or you pay off in full every month and they just want you to agree to lowering your total available credit and in exchange they give you cash?
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Quote:
Originally Posted by skofarrell
I would not hesitate to take this deal. 7% for doing nothing? Sure!
AMEX has likely already made more than 7% off the OP from the balance that has been carried in the past.
It was reported earlier in 2009 that AMEX was offering incentives to customers who agreed to pay off balances and close cards, not just pay down the balances.
I agree. Amex can reduce credit lines without giving you anything and the amount offered was exhorbinant.
If he's carrying a $40K balance they won't summarily reduce his limit to $20K, they'll just chase his limit down as he pays it off. Most of the time people who are carrying large CC balances (at 13%+) don't have the means to take any kind of deal.
One more thought to consider, I wonder if he'll get 1099ed for the reduction amount? He should ask. If yes, then he should factor in the tax implications on taking the deal.
I had a call from Amex with an interesting offer. If I would reduce my credit line in half they would give me a $2500.00 credit. If I would pay it off they would give me a $5,000.00 credit. He used the magic number of a 7% refund of my reduction. They will also give me a guaranteed credit limit which is half of the amount it is reduced by. So $40k becomes a $20k credit line if paid off.
The new strategy for those of us who persistently keep their lines in use to avoid a credit line reduction is to pay you to reduce it. Now I can't say I won't do it, because if they offer me more money, I probably will. What offers are you other guys seeing?
Get a name and/or a case number. Hang up. Call them back on the number listed on the card, ask for the person or case number given. Take the offer. Buy some good wine. Don't keep a balance ever again.
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Posts: 9,972
Quote:
Originally Posted by budblab
To me, this sounds like a phishing call to get you to give someone your info. I sincerely hope for your sake that I am wrong.
I don't know if this was phishing or not, but whenever I get a call like this from a financial institution, I always thank the person, hang up and call the 800-number myself. If it's legit, the CSR who answers the phone will be able to help me.
Mike
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One more thought to consider, I wonder if he'll get 1099ed for the reduction amount? He should ask. If yes, then he should factor in the tax implications on taking the deal.
Yupper, remember those taxes...and, whatever the offer, get it in writing FIRST...and, have them spell out the 1099-ishiness of the deal in writing, too.
Can't trust the B*stards these days...gotta get it down on paper.
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