Introduction

In March, Amex announced a new Financial Relief Program to assist cardholders who are struggling to make payments due to the impact of Covid-19. This program offers payment plans of up to 60 months, with reduced monthly payments, lower interest rates, and waived fees. While this plan can be beneficial for many facing large credit card bills, it's essential to understand the details before joining. Let’s explore what we know about the program.

The Program Overview

Amex offers two versions of the Financial Relief Program:

• Short-Term Financial Relief Program: Provides relief benefits for up to 12 months.
• Long-Term Financial Relief Program: Offers relief for 36-60 months.

Eligibility for each program is determined by Amex based on your relationship with the company, account balance, account status, and other factors.

Benefits:

• Reduced minimum payments
• Lower variable APR (some applicants receive as low as 3% APR)
• Waived late and annual fees

The program is available to both personal and business cardholders.

Will Joining the Program Affect Your Credit Score?

Amex has confirmed that joining the program will not impact your credit score, and your account will continue to be reported to the credit bureaus in good standing. However, Amex will add a note to your credit report indicating that the account is part of a payment plan. While this note won’t affect your credit score, it could influence future loan approvals.

Will Your Amex Credit Cards Be Closed or Restricted After Joining the Program?

• Long-Term Plan: Amex will close all your Amex credit cards.
• Short-Term Plan: Your accounts will remain open but with restricted charging privileges.

Additionally, as reported by The Points Guy (TPG), Amex may remove your reward points after joining the program. Therefore, if you have accumulated rewards, it’s advisable to redeem them before enrolling.

How to Join the Program

You can join the program via chat or by calling Amex at 1-866-703-4169.

Conclusion

The Amex Financial Relief Program offers a valuable opportunity for individuals struggling with high credit card bills due to Covid-19. The program allows you to save on interest, reduce monthly payments, and protect your credit score. However, it's important to understand that joining the program will affect your relationship with Amex and reduce your charging privileges. The long-term plan also involves the suspension of your accounts. Therefore, I recommend this program only for those who truly need it.

You can read more about hardship and forbearance programs here.

Stay safe.