Amex Paying Customers $300 to Cut Up Their Cards

A "select" number of American Express customers are being offered $300 to close their accounts. How can you become such a customer?

A "select" number of American Express customers are being offered $300 to close their accounts.  The offer is being sent via direct mail to certain customers and comes with a unique promo code.  That means, the vast majority of Amex holders will not be eligible.  What a change from the days when the credit card companies would offer free airline tickets, compansion airline tickets, cash back bonuses, etc. to get you to open an account and start charging up a balance.

What changed?  The awful economy and projected credit card defaults in the double digits.  Amex, like other credit card companies is trying to limit its exposure before more of the money they lent out goes bad.  So, who is likely to receive an offer?

  • Card holders who haven't used their card in over a year.
  • Card holders running a balance in excess of 50% of the card's limit.
  • Card holders with a history of late payments, etc.

To Amex's credit, at least they are paying customers to leave instead of forcing customers out by jacking up their credit card rates. 

If anyone has received a letter with the offer, let us know.  I'd love to know if they are actually out there in the wild.

 

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

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Visa Launches Exclusive Black Card, A Credit Card with $495 Annual Fee

Visa just launched Black Card, an exclusive credit card with a $495 annual fee. The reward include cash back or airline miles, concierge service, a patent pending carbon graphite card, and free luxury gifts.

Visa just launched Black Card, an exclusive credit card with a $495 annual fee.  The rewards include:

  • 1% cash back or airline miles without any blackout dates.
  • 24-hour concierge service.  
  • A patent pending carbon graphite card as you can see to the left.
  • Free luxury gifts.
  • 0% APR for 6 months on balance transfers.
  • VIP access to more than 500 travel lounges around the world.
  • EXCLUSIVITY.  Let's face it, this is the real seller of the card.  The card is limited to fewer than 1% of US resident.  So assuming you want it, unless you have a fat wallet to begin with, you aren't getting it.

The rates on the card are competitive but certainly not exclusive.  But I guess if you want the card you probably aren't worried about carrying a balance.  The standard APR is 13.99% variable.  Balance transfers are 0% fo the first six billing cycles and then it goes to 13.99% APR.  Cash advances are 19.99% APR.

Visa is taking a page out of American Express's playbook with Black Card.  For most credit card holders, the rewards aren't great.  1% cashback is low compared to some of the other top rewards credit cards.  And the annual $495 fee means that only those that want to flash the patent pending graphite carbon alloy blend would fit into the card's target market. 

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

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Fidelity Retirement Rewards Amex Card Offers 2% Rebate Into IRA

The Fidelity Retirement Rewards Amex Card just launched and it rebates a high 2% into a Fidelity IRA. There is no annual fee and no minimum balance.

Fidelity Retirement Rewards American Express CardThe Fidelity Rewards Amex Card just launched and it rebates a high 2% into a Fidelity IRA.  There is no annual fee and no minimum balance.

As you can see from the BestCashCow Credit Card Rewards page, 2% is pretty high for an unrestricted rebate amount.  Some credit card companies pay higher but they only pay on certain items, or they cap the amount that you can earn per year.  Fidelity has no restrictions on what you earn 2% on and there is no limit to what you can earn.

I have the Fidelity 529 College Rewards Card and 2% of whatever I spend is deposited into a 529 plan for my kid's college education.

For every $1 that you spend you'll earn 2 rewards points.  Once you reach Reach 5,000 points (after making $2,500 in purchases) $50 can be automatically swept into your Fidelity IRA as a current year contribution or other Fidelity account.  You'll obviously need a Fidelity account in order to redeem the offer.

The card, like all credit cards, is best used by someone who pays off their balances in full every month.  The card charges a 16.99% APR.   Balance transfers receive an intro. rate of 1.9% for the first 6 statement Closing Dates. After that the rate is 16.99% APR.

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

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