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@cashnocredit wrote:The POT "CL" of 35k is the same for everyone that is given, and accepts, the option. Green, Gold, Plat, and Cent, It actually doesn't mean you can spend 35k then put in on POT. Charges over $100 may be eligible for POT but it is up to Amex on each such charge to offer it or not. It also doesn't imply your internal SL is 35k or more.
The reason for the 35k limit on all cards is that Amex securitizes these debts and sells them as high income interest bearing instruments to eligible institutions or individuals. Details of this can be seen in their SEC filings which specify the 35k limit for any individual debt in the portfolio.
Obviously Amex wants people to use this feature otherwise they would have nothing to securitize, They do this for liquidity. It provides more cash for expanding their regular charge card and credit card business.
The only downside is that they will weigh their internal estimates of your financial status differently and more towards income than assets. This is no big deal since that's the standard assumption of the entire credit card industry. Also, since the interest rates are high and accrue at the time of purchase, they can get a good estimate of your income based on payoff speed.
Very interesting, thanks for the info and insight! Though I now only use my Green card once every six months just to keep it active and am considering closing it. My AMEX BCE is my go to card :-)
The op is worried about a hard limit but everyone who has a charge card has a monthly hard limit and it varies per person based on your usage. I opened the PRG three weeks ago and I know my internal monthly limit is 20k. I asked the CSR. They have this info if you asked them. I also have the POT feature that I signed up for when I activated the account. Like other posts with a 35k limit. If I use it and they FR then I will just close the account I have other things to worry about in life beside what is going to set Amex off. I don't plan on using it but I have the option. Which the letter they sent me confirmed.
@ezdoesit wrote:The op is worried about a hard limit but everyone who has a charge card has a monthly hard limit and it varies per person based on your usage. I opened the PRG three weeks ago and I know my internal monthly limit is 20k. I asked the CSR. They have this info if you asked them. I also have the POT feature that I signed up for when I activated the account. Like other posts with a 35k limit. If I use it and they FR then I will just close the account I have other things to worry about in life beside what is going to set Amex off. I don't plan on using it but I have the option. Which the letter they sent me confirmed.
+1 I like this line of thinking
Life is too short, right?
(Edit: Spelling)
@ezdoesit wrote:The op is worried about a hard limit but everyone who has a charge card has a monthly hard limit and it varies per person based on your usage. I opened the PRG three weeks ago and I know my internal monthly limit is 20k. I asked the CSR. They have this info if you asked them. I also have the POT feature that I signed up for when I activated the account. Like other posts with a 35k limit. If I use it and they FR then I will just close the account I have other things to worry about in life beside what is going to set Amex off. I don't plan on using it but I have the option. Which the letter they sent me confirmed.
What is "The op?"
Call a CSR and let them add it to your account for 10k MR points. It's free money. I did it but have never used the feature. In fact, myFICO.com family has made me nervous about keeping a balance on any of my AMEX cards, so I pay them both off before the statement cuts.
@OptimalFICO wrote:
@ezdoesit wrote:The op is worried about a hard limit but everyone who has a charge card has a monthly hard limit and it varies per person based on your usage. I opened the PRG three weeks ago and I know my internal monthly limit is 20k. I asked the CSR. They have this info if you asked them. I also have the POT feature that I signed up for when I activated the account. Like other posts with a 35k limit. If I use it and they FR then I will just close the account I have other things to worry about in life beside what is going to set Amex off. I don't plan on using it but I have the option. Which the letter they sent me confirmed.
What is "The op?"
Original Post
I activated my AMEX Green yesterday and they asked me if I wanted that feature with an interest rate of 18.24%, which is not too bad since my other credit card will be having a higher interest rate comes February. Regardless, I still declined. If I do need to pay something over time, I might simply call AMEX and ask them or used my other credit card but I truly want to get into the habit of PIF.
@Pat94108 wrote:I activated my AMEX Green yesterday and they asked me if I wanted that feature with an interest rate of 18.24%, which is not too bad since my other credit card will be having a higher interest rate comes February. Regardless, I still declined. If I do need to pay something over time, I might simply call AMEX and ask them or used my other credit card but I truly want to get into the habit of PIF.
Congrats on your Green card! I love AMEX and hope you will too!
IMHO: Good idea to get into the habit of PIF! This AMEX pay-over-time feature is only good as an emergency backup. Why pay interest at any rate if it doesn't serve a purpose or you don't have to? Did you enroll in Membership Rewards? If so, then I would suggest enrolling in this feature when a promotion is available for free reward points for doing so, such as the person above who reports getting 10,000 MRP.