The blance wont show up on your credit reports ? wow that would be a good option for someone who NEEDS to pay off over time... that rate seems high tho i doubt people use it much. it is a set amount of time like an instalment loan ? 12 24 36 months and so on ? or just min payments ?
The balance will show up on my credit reports, but it won't be calculated into my utilization (except for the TU98 FICO version). It's not like an installment loan, it basically is a revolving balance on a charge card. So yes, minimum payments are due each month until paid in full. And interest accrues, of course.
I took this option and no AA. I got 5K MR points for doing it too. The APR is 15.24 so about the same as a lot of their revolvers and my hard limit to revolve is 35K. I don't plan on using it but the option is there and it doesn't affect FICO utility if I want to carry a balance. The option is to revolve any charge over $100 and the charges show up on your statements that are eligible. Get the 5K MR points and don't use it is my recommendation. In order to be invited, you have to have a GREAT internal score with Amex so no worries IMHO and experience.
Added hard limit to revolve
So in essence .. AMEX needs you to be a cardholder for over a year with a high internal score to get qualified for the option? I could see that most of you have the option but kind of don't like it ...?
I don't think there is a minimum time limit for the option to be offered. I've had my Amex charge cards for less then a year after rebuilding and I was offered the option a few months ago. And I don't necessarily dislike the option. Actually, I like having it though I've never used it. The benfits: revolve a balance with no hit to utility. 5K MR bonus. You don't have to use it. The down side: You will pay interest. 15.24% or higher. Some say it leads to AA but I don't see the evidence for this. These are just MY observations.
I also just want to put this out there: Amex does not offer products to individuals so that they can "trick" them into losing their accounts. Amex like any financial institution offers products to it's customers in the hopes of driving more revenue at the lowest possible risk with the highest reward that is precieved by it's customer base as having value. If Amex thinks you can't pay your bills, they will FR you in a heart beat. With that said, if you are offered a product by them, take it if it will benefit you because it's not a ploy but an opportunity for both them and you to have another financial relationship. JMHO
" If I ever need to carry a CC balance I'm in real trouble. Almost as much as that CC issuer would be."
Pay over time is selective to qualified AMEX cardholder. I'd advised you to not use it frequently and use it responsibly. Don't use it then pay minimum payment each month. If you use it, try to pay off the balance within 6 months. There has been horror stories of revolving balance more than 6 months.