Carrying balance on Amex revolver while intro 0% APR period?

[saaws]

Intro:

I've been receiving Amex pre-approval letters for about half a year for their Gold and Green cards, But I didn't really have needs for them.  I applied for Blue Cash half a year ago but they denied me.   Two days ago, I checked Amex's pre-approval page and Gold and Green were showing, but I decided to apply for Blue Cash preferred instead because that was the only card I reall wanted.  When I applied, I had a 'you will receive a decision within 14 days' notice, but when I went to their 'check applcation status' it showed approved. (Sigh of relief).

Main quesetion:

Now, Blue cash preffered offers 12 months Intro 0% APR purchase.   But on Myfico forum, everyone says that 'even though Amex allows you to carry a balance on revolver, NEVER do it.'    So in this case, what's the best strategy?  Just ignore their 0% Intro APR and PIF?

[Anonymous]

I can not give you a clear cut answer to your question................

You will read here at MyFico, some members say NEVER carry a bal with AmEx, and others say they carry balances and have no problems whatsoever.

I personally never carry a bal with AmEx on any of my 3 AmEx cards, I always PIF no matter what (but I do the same with all my other CC's as well, with the exception of one CC that I allow to report a small bal for util purposes, then PIF that card after the statement cuts).

I'm sure you will get mixed answers to your question.

Best of Luck!

[Wolf3]

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saaws wrote:heck applcation status' it showed approved. (Sigh of relief)....

Main quesetion:

Now, Blue cash preffered offers 12 months Intro 0% APR purchase.   But on Myfico forum, everyone says that 'even though Amex allows you to carry a balance on revolver, NEVER do it.'    So in this case, what's the best strategy?  Just ignore their 0% Intro APR and PIF?

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Not everyone says that.  IMO, if AMEX never wanted you to carry a balance, they would have staid with charge cards only.  The charge cards used to have an option to pay for  travel or large purchase over time with interest.   

I always use the 0% APR.    I don't see any reason not to, just because it is AMEX. .

[Creditaddict]

I would say I would have a different answer depending on the variable.

If you have a 20k credit line and you charge it up to say 7-10k and then make payments at the rate of 1-2k a month without charging several more thousand each month... like your payments are making your balance go down each month then you are probably okay carrying a balance...

but if you charge 10k and then pay 2k but charge 4k in the next month and then pay 3k and charge 5k in the next month your balance is only going up and after 3-6 months of balance going up not down you are probably going to end up being monitored a little closer (Amex is known for Softs several times a month if they are watching you)

I think what really made Amex rethink things about carrying blances and BT is when they offered Clear with 3.9% for life of balance and business platinum cash with 7.9 for life of balance... but at the same time we also went into credit crash so it's still kind of all speculation if it was people carrying balances so cheaply or just a new view on credit lines in a recession but I saw HUGE CLD at that time... The people that paid off balances at that time and waited a year or so started to be able to request CLI again on Amex and started rebuilding CL's back to what they had before, people that didn't pay off balances including myself on the accounts I managed, I just continued to see more CLD and hard limits placed on charge cards.

I hope this makes sense in the end but I will conclude by saying if you do not really have balances on any other cards and you carry some balances on amex during 0% you will probably be completely fine, if amex softs and you are close to limit on some other cards and you are revoling balances with them too they very well might say this 10k line is not a good idea.

[MS00000000]

I'm carrying a balance on my intro 0% APR offer on Amex BCP and I'm not too worried about it. I also have SPG, Costco TE and Zync, and those are always PIF. I don't know why they'd offer a 0% APR introductory offer and not expect people to use it. 

[Red1Blue]

I would not take more 3 months to pay off Amex card. Even though they offer the deals, it raises the red flags and might start FR and other things. Just not worth it. I would say walk away from it and ask Citi or some other conventional banks for good deal.

[johnnie198x]

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Creditaddict wrote:but if you charge 10k and then pay 2k but charge 4k in the next month and then pay 3k and charge 5k in the next month your balance is only going up and after 3-6 months of balance going up not down you are probably going to end up being monitored a little closer (Amex is known for Softs several times a month if they are watching you).

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I was in similar situation. Approved for 2k limit with 0% APR. I maxed out within 2 months and paid only the minimum payment for the next 8-9 months. I had the money, but I didn't pay down. When I paid down to 1k, they immediately lower my limit to 1.1k.

Just thought worth sharing.

[saaws]

Thank you all for your input! It helped me a lot - I think I will PIF every month on my BCP, I have 0% intro on Discover more for anything I want to pay over time.  I received measely $2,000 limit on my Amex anyway, and from what I read here it seems $2,000 line indicates that Amex isn't quite sure of how to feel about me yet.  I am scared of getting F/R from AMEX, if it weren't 6% Grocery Cashback, I wouldn't have gotten BCP from Amex.

[Creditaddict]

Remember you can ask to increase 2k to 6k in 61 days!!

[suzook1]

61 days from the date you activated the card?