Amex To Pay It- Installments

[Credit_hawk]

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@wasCB14 wrote:

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@Anonymous wrote:

Thanks for posting this thread! I did some research. Apparently if your cards are eligible the account holder receievd new card terms in the June statements. I recall the extra infomration but thought it only related to penalty APRs and how they apply payments. There is an entire section explaining the new PLan It feature. The fixed rate is identifed and each month applied to the payment required. I chatted wiht CSR and eligible accounts are only now being enrolled geinning yesterday so the icons will slowly appear for as the cards are enrolled. He told me with in 72 hours.  I usually PIF too, but this past year have been on a reuced APR rate promo so enjoying that a bit. I like the twi nfeature Pay It which is only availbale on the mobile app. You tap the Pay It icon to pay for that purchase now through your linked checking account. A great feature say for groceries or gas. I will definitely use the Pay It and will try the Plan It on my upcoming hotel stay purchase.

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I don't really see the value of Pay It.

For utilization micromanagers who can PIF, they can just pay once before the statement cuts and not worry about a bunch of little payments.

For people who will be carrying a big balance, their utilization won't be low, anyway.

For people who want to avoid any inconvenience from an FR, there's moderately high utilization and lots of small payments...two alleged FR risk factors.

For people with low checking balances, why give up cash before you need to in a manner that, in a few weeks, may prove to be less than ideal?

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I think it's an interesting out of the boxish idea for AMEX. When analyzing its usefulness you have to take our small segment of card users out of the equation as we are not their target audience. Anyone who pays on full at the end of the month can't possibly be given a better deal than a free loan for 4-6 weeks on someone else's dime while earning benefits. According to the Fed, about 60% of Americans carry a balance. This is a great option to avoid 20% apr while purchasing bigger ticket items. If I read my terms correctly, admittedly I skimmed it, AMEX is claiming to be maxing interest out at 0.83% on each plan it item. Now I may have misread that or maybe rates differ per person but that's a good deal for revolvers apart from a new card offer at 0%. Even 5% is a killer deal over the 15% apr that is the average credit card rate these days according to Bank Rate.

[wasCB14]

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@Credit_hawk wrote:
I think it's an interesting out of the boxish idea for AMEX. When analyzing its usefulness you have to take our small segment of card users out of the equation as we are not their target audience. Anyone who pays on full at the end of the month can't possibly be given a better deal than a free loan for 4-6 weeks on someone else's dime while earning benefits. According to the Fed, about 60% of Americans carry a balance. This is a great option to avoid 20% apr while purchasing bigger ticket items. If I read my terms correctly, admittedly I skimmed it, AMEX is claiming to be maxing interest out at 0.83% on each plan it item. Now I may have misread that or maybe rates differ per person but that's a good deal for revolvers apart from a new card offer at 0%. Even 5% is a killer deal over the 15% apr that is the average credit card rate these days according to Bank Rate.

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I can see value in Plan It. I just don't see any reason to bother with the "partner tool" of Pay It. I'm saying a combination of Plan It and conventional payments makes the role of Pay It questionable.

I've seen monthly rates vary from 0.48% to 0.83%. The range might well be greater.

[Credit_hawk]

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@wasCB14 wrote:

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@Credit_hawk wrote:
I think it's an interesting out of the boxish idea for AMEX. When analyzing its usefulness you have to take our small segment of card users out of the equation as we are not their target audience. Anyone who pays on full at the end of the month can't possibly be given a better deal than a free loan for 4-6 weeks on someone else's dime while earning benefits. According to the Fed, about 60% of Americans carry a balance. This is a great option to avoid 20% apr while purchasing bigger ticket items. If I read my terms correctly, admittedly I skimmed it, AMEX is claiming to be maxing interest out at 0.83% on each plan it item. Now I may have misread that or maybe rates differ per person but that's a good deal for revolvers apart from a new card offer at 0%. Even 5% is a killer deal over the 15% apr that is the average credit card rate these days according to Bank Rate.

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I can see value in Plan It. I just don't see any reason to bother with the "partner tool" of Pay It. I'm saying a combination of Plan It and conventional payments makes the role of Pay It questionable.

I've seen monthly rates vary from 0.48% to 0.83%. The range might well be greater.

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Oh I follow. Pay it is probably a gimmick. I glanced over "Pay It" because it's redundant. I'll have to look into that part more. 

[wasCB14]

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@Credit_hawk wrote:

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@wasCB14 wrote:

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@Credit_hawk wrote:
I think it's an interesting out of the boxish idea for AMEX. When analyzing its usefulness you have to take our small segment of card users out of the equation as we are not their target audience. Anyone who pays on full at the end of the month can't possibly be given a better deal than a free loan for 4-6 weeks on someone else's dime while earning benefits. According to the Fed, about 60% of Americans carry a balance. This is a great option to avoid 20% apr while purchasing bigger ticket items. If I read my terms correctly, admittedly I skimmed it, AMEX is claiming to be maxing interest out at 0.83% on each plan it item. Now I may have misread that or maybe rates differ per person but that's a good deal for revolvers apart from a new card offer at 0%. Even 5% is a killer deal over the 15% apr that is the average credit card rate these days according to Bank Rate.

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I can see value in Plan It. I just don't see any reason to bother with the "partner tool" of Pay It. I'm saying a combination of Plan It and conventional payments makes the role of Pay It questionable.

I've seen monthly rates vary from 0.48% to 0.83%. The range might well be greater.

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Oh I follow. Pay it is probably a gimmick. I glanced over "Pay It" because it's redundant. I'll have to look into that part more. 

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Just as they're always coming up with new, convenient ways customers can squander MRs, they find new ways to encourage sub-optimal payments.

[700orbust]

I'm about to spend a lot of money on furniture for the new house, and this is something I'd consider to keep cash flowing nicely. However, it's not in my app for BCP or Plat.

[Anonymous]

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@700orbust wrote:
I'm about to spend a lot of money on furniture for the new house, and this is something I'd consider to keep cash flowing nicely. However, it's not in my app for BCP or Plat.

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On my June statements, one effective on 9/06, another on 9/16....  Check June statement... These are only for revolvers..

[Credit_hawk]

Yeah, it's not on anybody's yet. Look for the next AMEX app update on your phone. That's when you'll see it most likely. I'd say within a week or two.

[Anonymous]

Well, i see this in my BCE.  

I noticed that transactions over $100 have the "Plan it" button.  If i click on a $119 charge i have, it gives me the following below.  

3 payments of $40.68 - Includes a monthly plan fee of $.92 for a total fee of $2.76 - Total cost $122.02 

6 payments of $20.98 - Includes a monthly plan fee of $1.10 for a total fee of $6.60 - Total cost $125.86 

9 payments of $14.42 - Includes a monthly plan fee of $1.16 for a total fee of $10.44 - Total cost $129.70 

If you do the above but with your APR and not "Plan it"

Example Only @ 18%

$119 - $25 (mininum payment) = $94 + 18% ($1.41) = $95.41

$95.41- $25 (mininum payment) = $70.41 + 18% ($1.05) = $71.46

$71.46 - $25 (mininum payment) = $46.46 + 18% ($.69) = $47.15

$47.15 - $25 (mininum payment) = $22.15 + 18% ($.33) = $22.48

Just doing the minimum payments, you'll end up paying $3.48 in interest + $119 = $122.48 TOTAL

The way i see it, anything above 6 months with the "plan it" feature, you will pay more.  

[700orbust]

My BCP statement closes on the 10th so I'll be interested to see what shows. Platinum on the 22nd.

I could see using this for big swipes over a few months