topic Re: AMEX and the 0% intro rate in Credit Cards

AMEX and the 0% intro rate

Anonymous — Wed, 04 Apr 2012 00:45:20 GMT

Hello everyone,

I have a couple questions about this stuff.

First off, I usually PIF, so I have no idea how to take advantage of this 0% intro rate of my AMEX BCE.

My statement just came in, and it says minimum payment due is $35. If I simply submit a payment of $100 or so, would there be any repercussions? Fees, etc?

Also, as I treat all my credit cards like debit cards now, I have the cash on hand to PIF. I also do not want to give AMEX any reason to start an FR. Would it be safer to just PIF, and pass on the intro rate? As it stands, I have about 1k charged to the card (again, I can PIF) but if I only pay like $100 to take advantage of the 0%, then continue to rack up charges (mostly photo gear, which gets expensive; also planning to put my new PC at the end of April on it, which will be about 1.3k) would that get AMEX antsy?

For reference, my BCE has a $13,800 limit.

On a related note, my 61st day with AMEX is coming up this weekend.. Should I bother trying for the CLI?

Again, I don't want to give them any reason to FR, and requesting a CLI on top of not paying in full seems a bit odd to me.

Thanks, everyone!

Re: AMEX and the 0% intro rate

Anonymous — Wed, 04 Apr 2012 00:54:21 GMT

Personally, I really dislike having debt, so I don't carry any balances, even with 0% intro offers. Especially with American Express, I wouldn't use it unless I absolutely had to. If you are just making lots of smaller purchases and everyday purchases and making really small payments, I think Amex would take notice. If it was one or two large purchases and you paid in like 3 good chunks, it would probably be ok.

Re: AMEX and the 0% intro rate

Walt_K — Wed, 04 Apr 2012 02:37:28 GMT

If you need to float for a while, do so and don't worry about it. If you don't, I'd probably still PIF. With interest rates as poor as they are, you're not really going to earn much by keeping $10K in a savings account or even a CD versus paying off your card. That would be how you would take advantage of the intro rate. By keeping the money somewhere else where it was earning for you. If you have such an option, go for it, there just aren't as many options as there used to be. FR is overblown.

If you do want to ask for the CLI, I would do that before carrying a balance.

Re: AMEX and the 0% intro rate

jefftca925 — Wed, 04 Apr 2012 05:18:42 GMT

@Walt_K wrote:
If you need to float for a while, do so and don't worry about it. If you don't, I'd probably still PIF. With interest rates as poor as they are, you're not really going to earn much by keeping $10K in a savings account or even a CD versus paying off your card. That would be how you would take advantage of the intro rate. By keeping the money somewhere else where it was earning for you. If you have such an option, go for it, there just aren't as many options as there used to be. FR is overblown.

If you do want to ask for the CLI, I would do that before carrying a balance.

+1 I have 0% on my BCP until December but I still like to PIF. I'm hesitant carrying balances with Amex since they seem to prefer PIFers...even with free financing. It will give you better odds when trying to get a good CLI with them down the road too.

Re: AMEX and the 0% intro rate

Open123 — Wed, 04 Apr 2012 14:35:42 GMT

With my SPG, I always PIF because there's no intro rate.

On my BCE's intro rate, I take my month's ending balance divided by the time remaining on the 0%, and make that payment. I never believe in PIF if there's no interest on a remaining terms.

On general principle, I will always maximize the value of the 0% intro rate, even if I don't need to. Paying it off over time in of itself isn't going to start an FR.

Re: AMEX and the 0% intro rate

Anonymous — Wed, 04 Apr 2012 15:17:09 GMT

What I would do if you have the money to PIF now, just go ahead and do it. Only carry a balance if you have to. I have a 0% intro APR on my discover card and I was planning on paying in full, but some unexpected car bills came up and I am happy to ease the sting of mechanic bills over several months with no interest.

If you have the money might as well PIF to keep your util down.

Re: AMEX and the 0% intro rate

Anonymous — Wed, 04 Apr 2012 15:27:56 GMT

I'd try to PIF, just because I've heard of cases where people forgot month 13 was coming up and relied on carrying a balance for a while because of 0% intro rate, and then WHOOPS, here comes the 25.24%...

Re: AMEX and the 0% intro rate

Creditaddict — Wed, 04 Apr 2012 16:18:20 GMT

I would not carry with Amex if you have the cash... the interest like another poster stated is not worth it.

I would always request an increase if it's available especially when you are starting at nearly $14k! I'd ask to move to the $25k.

Re: AMEX and the 0% intro rate

LS2982 — Wed, 04 Apr 2012 16:26:28 GMT

@FR +1

Re: AMEX and the 0% intro rate

Anonymous — Thu, 05 Apr 2012 01:20:07 GMT

Thanks for your responses, everyone.

I only considered taking advantage of it, since I've never really had the chance to do it before, and I would definitely take care to pay it all off before it expired. I hate paying fees and stuff, which is why I never bothered with any of AMEX's charge cards, or any other CC with an AF.

In any case, it seems it's best to just play it safe and conservative with AMEX, judging by most responses, and just PIF, or pay as much as I can.

I have no idea if I should ask for the CLI though, especially up to their maximum 25k so soon. I didn't charge anything to the card the first month, so this is my first statement from them, and so I haven't ever actually paid them for anything yet. I'm not sure if I need to ask for the CLI exactly on day 61, or if I can just hold off until I send a payment and show them that I do intend to pay my bills first.

Does anyone know if the CLI request itself ever raises suspicions for an FR?

Re: AMEX and the 0% intro rate

Walt_K — Thu, 05 Apr 2012 01:32:26 GMT

@Anonymous wrote:

Does anyone know if the CLI request itself ever raises suspicions for an FR?

Who knows. If you asked for a $25K CL at day 61 and your annual income is $20K, then maybe that might seem odd. You really don't need to be so worried about FR though. It's blown all out of proportion. Most people have no idea what FR is until they come reading on this site, and all of a sudden everyone's an expert on Amex FR. Constant warnings from people not to do this or that because they read some other thread that said it might cause FR when the vast majority of people haven't ever gone through it.

I'm assuming if you got a $13K+ initial CL, you have a fairly decent income. I doubt there will be any problems asking for an increase. But if you don't need it, you don't need it. I waited 6 months to ask for my first CLI with Amex. I was comfortable with the initial CL they gave me so there really was no need. If you actually have a need to use more though, don't hesitate to ask. Or give it one more month showing some usage on the card and then ask. However you want to do it, but I wouldn't worry about FR. It's 99.9999+% not likely to happen (but carry a non-Amex just in case ).

Re: AMEX and the 0% intro rate

clocktick — Thu, 05 Apr 2012 01:46:05 GMT

@Walt_K wrote:
If you need to float for a while, do so and don't worry about it. If you don't, I'd probably still PIF. With interest rates as poor as they are, you're not really going to earn much by keeping $10K in a savings account or even a CD versus paying off your card. That would be how you would take advantage of the intro rate. By keeping the money somewhere else where it was earning for you. If you have such an option, go for it, there just aren't as many options as there used to be. FR is overblown.

If you do want to ask for the CLI, I would do that before carrying a balance.

I agree with the red above. I would ask for the full CLI before charging up your card. They will counter if they think it's too high. You can do it online or call the number and do it through the automated service. It's quick and painless and best of all, a SP.

I take advantage of 0% offers frequently. I never did with Amex though because I just like to be a little more careful with them. If you're worried, I wouldn't hestitate to call and talk to them about it. They have excellent customer service. As long as you pay it off before the 0% expires (that's how they get a lot of people), everything should be fine.