topic Re: How do you manage Amex Charge Cards? in Credit Cards

How do you manage Amex Charge Cards?

icyhot — Wed, 22 Apr 2015 14:50:43 GMT

I don't carry a balance on every card, but for the ones I use the most frequently (BofA Cash rewards) I do. And it seems like you would have to spend a lot on say, the Gold card, in order to justify the annual fee. I don't see myself ever getting one unless I used it to pay bills and immediately transfered the money from my bank account. For those of you who have it, how much is your monthly spend and what are your common purchases? Is it worth it?

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 15:08:32 GMT

I can't say that I do justify having the card. But one thing I do is take advantage of the online offers. For instance, I believe you can get $10 off your Verizon plan for three months if you pay with Gold. I also made a purchase at a sporting goods store that offered $20 cashback with a purchase of $100. Right now there is also a promotion to spend $20 or more at Amazon and get $20 off. That's the use I have found with the card lately [$70 savings in three months]. It's a pretty card to have in the wallet otherwise.

Re: How do you manage Amex Charge Cards?

jamesdwi — Wed, 22 Apr 2015 15:21:15 GMT

@icyhot wrote:
I don't carry a balance on every card, but for the ones I use the most frequently (BofA Cash rewards) I do. And it seems like you would have to spend a lot on say, the Gold card, in order to justify the annual fee. I don't see myself ever getting one unless I used it to pay bills and immediately transfered the money from my bank account. For those of you who have it, how much is your monthly spend and what are your common purchases? Is it worth it?

i have a zync card, thankfully its only a $35 AF, just monthly spend on the card doesn't justify its AF these days, but they offer small bussiness saturday that nets me $30 in credits. other deals/credits though out the year more than make up for it, and since it had back dating goodness, it appears on my report as one of my top 5 oldest cards.

before the 2% catagories were shut down I typically was pushing about $1000 a month through the card, I used it as a learning tool, i made a charge and then kept the money in my checking account gaining interest and then made 1 payment either before or shortly after statement cut. It helped me learn to track checking account balance via a seperate spreadsheet and not rely on what the bank balance says ( i do reconcile them monthly). Also thanks to my Checking account I have I earn like 7.25% for the first $500 in my checking account and then .01% for the rest, so net result is I earn $2-$3 a month in interest.

In short I recomend a charge card as part of rebuilding because it allows you freedom and power to pay your bills when they are due, and not worry that my paycheck is coming next week. Or deal with pain of temporary holds on cards for Gas, Travel, etc. when all your cards have sub $1000 limits, the charge card will most likely have an interal CL of 5 times that much.

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 15:32:41 GMT

The PRG is pretty good and competitive to most AF cards out their and the dining will be hitting 2x soon. I got one to test out but with all of my other cards and a $195 AF, it will certainly be on the chopping block next year. If you already have cards that give 2x in groceries, gas, travel, dining, etc...It probably isn't worth it. The advantage I see with charge cards is that it doesn't factor into utilization so it's great if you're building credit or if you have a large amount of expenditures every month (because NPSL). I wouldn't get one purely for rewards.

The Platinum has a ton of travel perks which makes it worth getting if you travel a lot.

Re: How do you manage Amex Charge Cards?

Jamex — Wed, 22 Apr 2015 16:51:45 GMT

I have a Green charge card. I got it when I was still in the early stages of rebuilding, and wanted a card I could use for big expenses that were going to be reimbursed (e.g., work expenses so that I could keep my own points, medical expenses that I could pay myself back with through my FSA, etc). It actually came in very useful when my car got hit in the parking lot by another driver, totally their fault, and I was able to turn the repair bill into MR points by paying up front with my Green and then paying myself back with the insurance check.

Now, that was mainly so useful because at that time my revolving limits were really low - so any major unplanned expense could have really messed up my utilization. Now that I have some cards with larger limits, I have been using my Green a lot less.

In my case, the only reason I will probably keep it is because it's backdated to 2004, and I think that kind of boost to my AAoA is worth $95/yr - at least until my rebuilding phase is complete.

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 17:13:12 GMT

@icyhot wrote:
I don't carry a balance on every card, but for the ones I use the most frequently (BofA Cash rewards) I do. And it seems like you would have to spend a lot on say, the Gold card, in order to justify the annual fee. I don't see myself ever getting one unless I used it to pay bills and immediately transfered the money from my bank account. For those of you who have it, how much is your monthly spend and what are your common purchases? Is it worth it?

I run a couple thousand per month on my Amex PG (Gold).

Here are my steps:

1. Charge

2. Review billing statement

3. PAY ALL OF IT DOWN TO ZERO BALANCE.

4. Rinse

5. Cycle

6. Repeat

That's it. Follow these simple rules and the AF pays for itself plus I rack up tons of points to use for travel.

Re: How do you manage Amex Charge Cards?

DigitalArk — Wed, 22 Apr 2015 17:26:32 GMT

I just got my PRG recently. I most likely will keep it even if I cannot justify the AF. I like to have the perks it comes with.

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 17:32:23 GMT

I just recieved my Platinum Card 2 weeks ago. I put $2800 on it, I could have put more but I needed to put things on my Venture too (to hit the sign up bonus).

The 100k rewards are worth 140k British Airways (40% bonus) avios points to me, which on certain flights can get between 3-5 cents a point since the rewards are distance based. I am planning to fly US to EU for 25k avios points and $120 fees and taxes with Aer Lingus return, that ticket is $1000+ for the same dates.

One MR point to me is worth about 0.03 cents, and with the British Airways transfer bonus (40% when it comes) its 0.42 cents per MR. Then bookings on AmEx Travel are double the MR, which means potentially 0.84 per dollar I spent on the AmEx Travel site.

Just based off MR and a spend of 2.5k a month (30k a year) I would get 30000 MR which is $900 in avios or $1260 (with the 40% bonus).

This doesn't include the statement credits of $200 a year on airline incidentals.

In 5 years I will have paid $2250 in annual fees, and made 250k MR plus $1,000 in airline credits which could equate to $10,500 in BA avios redemptions. Therefore an $9k profit for me. Which would finally equate to me making a profit of 6 cents per dollar I spent in the first five years (after fees and including the 100k bonus MR).

If you travel and use the AmEx charge cards well, you can really milk the rewards!

Spend, get bill, pay by "Please pay by" date, and repeat. It's simple.

Re: How do you manage Amex Charge Cards?

longtime_lurker — Wed, 22 Apr 2015 21:29:36 GMT

@DigitalArk wrote:
I just got my PRG recently. I most likely will keep it even if I cannot justify the AF. I like to have the perks it comes with.

+1. Between AMEX offers and the premium roadside assistance (only other card that currently has this is Plat - I lock my keys in my key at least 2x a year....), I will be keeping my PRG. However, I will try and see what they say regarding retention bonus about the increased AF, just because

...don't tell them I'd likely not cancel it if not given something though

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 21:38:09 GMT

@Anonymous wrote:
I just recieved my Platinum Card 2 weeks ago. I put $2800 on it, I could have put more but I needed to put things on my Venture too (to hit the sign up bonus).

The 100k rewards are worth 140k British Airways (40% bonus) avios points to me, which on certain flights can get between 3-5 cents a point since the rewards are distance based. I am planning to fly US to EU for 25k avios points and $120 fees and taxes with Aer Lingus return, that ticket is $1000+ for the same dates.

One MR point to me is worth about 0.03 cents, and with the British Airways transfer bonus (40% when it comes) its 0.42 cents per MR. Then bookings on AmEx Travel are double the MR, which means potentially 0.84 per dollar I spent on the AmEx Travel site.

Just based off MR and a spend of 2.5k a month (30k a year) I would get 30000 MR which is $900 in avios or $1260 (with the 40% bonus).

This doesn't include the statement credits of $200 a year on airline incidentals.

In 5 years I will have paid $2250 in annual fees, and made 250k MR plus $1,000 in airline credits which could equate to $10,500 in BA avios redemptions. Therefore an $9k profit for me. Which would finally equate to me making a profit of 6 cents per dollar I spent in the first five years (after fees and including the 100k bonus MR).

If you travel and use the AmEx charge cards well, you can really milk the rewards!

Spend, get bill, pay by "Please pay by" date, and repeat. It's simple.

Well analyzed!!! Nice job.

I do agree that the AF does seem smaller when you use the card properly.

If someone who gets the card for looks. . . then sorry Charlie, that $450 AF will be VERY expensive just for you to flash that Amex Plat in front of your friends for the occasional beer and hot dog.

Re: How do you manage Amex Charge Cards?

Stralem — Wed, 22 Apr 2015 22:24:49 GMT

Another vote for Roadside Assistance. I used it a couple months back when the engine belt in the car I was driving slipped off on the highway. Called the number on my card, and less than 30 minutes later, I was getting a tow that I didn't have to pay a single red cent for. Very nice.

I also like the rental car insurance. Came in handy for a past trip to the west coast.

That and the gas and groceries categories are why I willingly paid the annual fee.

Re: How do you manage Amex Charge Cards?

Anonymous — Wed, 22 Apr 2015 22:25:45 GMT

@Anonymous wrote:
@Anonymous wrote:
I just recieved my Platinum Card 2 weeks ago. I put $2800 on it, I could have put more but I needed to put things on my Venture too (to hit the sign up bonus).

The 100k rewards are worth 140k British Airways (40% bonus) avios points to me, which on certain flights can get between 3-5 cents a point since the rewards are distance based. I am planning to fly US to EU for 25k avios points and $120 fees and taxes with Aer Lingus return, that ticket is $1000+ for the same dates.

One MR point to me is worth about 0.03 cents, and with the British Airways transfer bonus (40% when it comes) its 0.42 cents per MR. Then bookings on AmEx Travel are double the MR, which means potentially 0.84 per dollar I spent on the AmEx Travel site.

Just based off MR and a spend of 2.5k a month (30k a year) I would get 30000 MR which is $900 in avios or $1260 (with the 40% bonus).

This doesn't include the statement credits of $200 a year on airline incidentals.

In 5 years I will have paid $2250 in annual fees, and made 250k MR plus $1,000 in airline credits which could equate to $10,500 in BA avios redemptions. Therefore an $9k profit for me. Which would finally equate to me making a profit of 6 cents per dollar I spent in the first five years (after fees and including the 100k bonus MR).

If you travel and use the AmEx charge cards well, you can really milk the rewards!

Spend, get bill, pay by "Please pay by" date, and repeat. It's simple.
Well analyzed!!! Nice job.

I do agree that the AF does seem smaller when you use the card properly.

If someone who gets the card for looks. . . then sorry Charlie, that $450 AF will be VERY expensive just for you to flash that Amex Plat in front of your friends for the occasional beer and hot dog.

That doesn't include any of the statement credits or MR refunds you can get with bookings if things go wrong. It also doesn't include the usage of the lounges.

I once had my hotel booking go wrong, American Express Concierge seem to have not booked a hotel they told me they had booked, well it was more the hotel didn't process the booking and denied even recieving the booking. I was on the phone with American Express UK while in India and they called me back so it wouldn't cost me money and then called the hotel at 10pm and told us to accept their most expensive room (double the room price) and told us they would cover the different and to have dinner on them. I got back to the UK, had to call them and they asked whether we wanted it as MR or GBP. I chose MR and got 50k MR which is worth more than 500 GBP if used correctly.

I also once had British Airways delay a flight on me for 6 hours, luckily I went to one of the lounges and slept for that time until a lounge employee woke me up. I've been to many lounges since I had my first Platinum at the age of 18 and I've loved most of them. The Mumbai one has a full buffet, and they cook some things infront of you.

Only caveat is the USA one charges for extra Platinum's while the UK one gives one free Platinum free and then 3 golds and the rest as green (iirc). I will probably get my wife the PRG as the rewards on that are just amazing for normal spend.

Re: How do you manage Amex Charge Cards?

icyhot — Wed, 22 Apr 2015 23:09:18 GMT

Sounds like a great card. I have about $500 in monthly expenses that I could possibly charge to the Gold. And also some incidental travel expenses. I wonder if $500 monthly spend could help me milk the rewards when I travel

Re: How do you manage Amex Charge Cards?

thom02099 — Wed, 22 Apr 2015 23:22:41 GMT

Just got an email today from AMEX, regarding my Gold (not PRG) card and some new bennies coming soon:

We recently included a notice with your monthly statement to let you know that there are some exciting changes happening with your American Express® Gold Card. These changes will take effect on June 1, 2015.

With the American Express Gold Card you will now get...
•	2X points at U.S. restaurants NEW!
•	2X points for flights booked directly with airlines NEW!
•	1X points on other purchases Terms and Limitations Apply.1
•	No foreign transaction fees2 NEW!
•	Personalized Travel Service3 NEW! Access to a team of Travel Professionals who are ready to help you with all your travel needs, including booking worldwide destinations, reserving hotel rooms and transportation, and planning cruise or tour packages.
•	Up to 5 Additional Cards for $0. The annual fee for the sixth or more Additional Card is $35 for each Card. NEW!

The bennies, as others have stated, are the usual justification for having a charge card.

As for managing the cards (I also have a Zync), like other have said, pay before the "please pay by" date. I usually pay just a few days after the charge hits the account. AMEX also offers some customers the added benefit to paying over time; I've taken advantage of that a few times, but the interest rate is higher than I'd like, so I don't do that often.

Re: How do you manage Amex Charge Cards?

longtime_lurker — Wed, 22 Apr 2015 23:20:30 GMT

@icyhot wrote:
Sounds like a great card. I have about $500 in monthly expenses that I could possibly charge to the Gold. And also some incidental travel expenses. I wonder if $500 monthly spend could help me milk the rewards when I travel

Such as...? If it's like airline stuff, go get PRG. Rewards wise...500/mo is only 6k MR a year but I'm not one to mention whether that's worth it because I don't put 500/mo on my PRG.

Re: How do you manage Amex Charge Cards?

kdm31091 — Wed, 22 Apr 2015 23:24:29 GMT

@icyhot wrote:
Sounds like a great card. I have about $500 in monthly expenses that I could possibly charge to the Gold. And also some incidental travel expenses. I wonder if $500 monthly spend could help me milk the rewards when I travel

You are almost certainly better off with a no AF cash back card if you are only going to spend $500 a month on the Gold (or really most AF cards). Just because a card is popular doesn't mean it will work for everyone.

Re: How do you manage Amex Charge Cards?

icyhot — Thu, 23 Apr 2015 01:28:08 GMT

Thanks. I think I'll stick with what I have for now but this was good insight

Re: How do you manage Amex Charge Cards?

DigitalArk — Thu, 23 Apr 2015 01:52:51 GMT

Does the regular gold come with premium Roadside Assistance after June 1, just like PRG?

Re: How do you manage Amex Charge Cards?

longtime_lurker — Thu, 23 Apr 2015 01:59:52 GMT

@DigitalArk wrote:
Does the regular gold come with premium Roadside Assistance after June 1, just like PRG?

Not AFAIK, that's not one of the changes. The PRG has had Premium roadside since creation. I was surprised that they were raising the Gold's AF, to be honest.

Re: How do you manage Amex Charge Cards?

Anonymous — Thu, 23 Apr 2015 06:58:52 GMT

I saw the 50,000 PRG with $1000 in the first three months promotion. Applied and three days later got an e-mail saying it got rushed approved. I have yet to receive it but I will definately be able to throw in $1000 every month, let's see if the $195 pays itself. If not I will probably still keep it, the perks are good POM.