Typical situation: you close a credit card account, and the points disappear into thin air. But this isn’t the case for everyone. Some AMEX holders are able to cash in their accumulated rewards points even after having closed the account.

Mary Pilon at The Wall Street Journal writes about the specifics to the option, which entails being in “good standing” when you closed the account and calling AMEX to get signed up to use the points within 90 days.

We’ve all been there: wanting to improve our financial position and spotting a rare opportunity. This is one such chance. While closing the account certainly makes sense for some who struggle to control their card-swiping behavior, another possibility can be equally valuable: leave the account open but cut up the card, and then cash out the rewards points for a supercharged debt snowball payment. By destroying the card and leaving the account open, you will not suffer a nick to your credit score. Irrespective of closing or leaving the account open, make sure to cash out the rewards points for cash to be applied directly to debt elimination payments. This is a direct and effective way to celebrate the end of reliance on credit cards with a contribution towards finally improving your financial health.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.

Tags: AMEX offer, credit card account management, credit score problems with debt, debt elimination payments, debt reduction payments, how to cut up the credit card, how to improve financial position, new credit card options with debt

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