Late payments and defaults on credit cards are so common these days that creditors are doing something out of character – actually encouraging card users to pay down or pay off their balances! In fact, they are offering cash incentives to do so. Granted, these are programs generally limited to a select group of cardholders, but if you are among them and you have the cash on hand to do it, paying down or paying off your card could pay you too and ultimately give a big boost to your budget.

Though it is by no means an exhaustive list, here are some of the cash incentive offers out there, as reported by MSN Money’s Liz Pulliam:

• American Express – $300 to pay off their balances and close their accounts
• Citibank – up to $550 to some customers if they paid down their debts, accepted credit limit reductions and promised to stop using their cards for up to 11 months
• Wells Fargo - reduced interest rates for some customers who paid down their debts (the bigger the payments, the lower the rates)
• Chase – $100 to $200 to pay down chunks of debt over six to nine months

Again, these are not offers extended to all card holders. Creditors are picking and choosing who they make these offers to, though it is unclear what critieria they are using to make the selections. And calling and requesting these offers won’t do the trick. In other words, if you get the offer and you have the means to do so, jump at the chance to make a little dough while paying down or paying off your credit card at the same time.

Best of all, unlike settlement offers that negatively impact your credit score, accepting one of these cash incentive offers will not count against your credit.

Of course, regardless of the cash incentive, you will benefit in the long run from paying down your cards, as you will pay less in interest rates. For tips on credit card mangement, check out this list of comprehensive credit card articles.

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