topic Re: AMEX Pay Over Time? in Credit Cards

AMEX Pay Over Time?

Anonymous — Sat, 15 Dec 2012 21:19:33 GMT

Hey guys.

So today I got a letter in the mail from AMEX saying they're making changes to my account effective Jan 1st, and I have until Dec 31st to cancel my account if I don't want it (basically, you're taking this or we're closing your account). Well on the back it listed something called "pay over time" and to me it sounds basically like a credit limit. I'm kind of confused as to what exactly it is.

I'm assuming it's a good thing, right? It says my Pay Over Time limit will be $35,000. That seems ridiculously high. Am I understanding something wrong or what? I may call Amex because I'm so confused right now lol. It doesn't list anything like interest rate, or even really how it works.

Can anyone offer some insight on this? It's for my Zync card.

Re: AMEX Pay Over Time?

webhopper — Sat, 15 Dec 2012 21:25:18 GMT

Pay over time is a really neat feature that allows you to select larger purchases and pay them as installments. Its on other charge cards but zync was previously not enrolled in this feature. For more info go to https://www.americanexpress.com/us/content/pay-over-time/loc.html

Re: AMEX Pay Over Time?

Anonymous — Sat, 15 Dec 2012 21:40:48 GMT

@Anonymous wrote:
Hey guys.

So today I got a letter in the mail from AMEX saying they're making changes to my account effective Jan 1st, and I have until Dec 31st to cancel my account if I don't want it (basically, you're taking this or we're closing your account). Well on the back it listed something called "pay over time" and to me it sounds basically like a credit limit. I'm kind of confused as to what exactly it is.

I'm assuming it's a good thing, right? It says my Pay Over Time limit will be $35,000. That seems ridiculously high. Am I understanding something wrong or what? I may call Amex because I'm so confused right now lol. It doesn't list anything like interest rate, or even really how it works.

Can anyone offer some insight on this? It's for my Zync card.

I received the same letter for my AMEX Green.

Re: AMEX Pay Over Time?

kekrre — Sat, 15 Dec 2012 21:49:32 GMT

@Anonymous wrote:
Hey guys.

So today I got a letter in the mail from AMEX saying they're making changes to my account effective Jan 1st, and I have until Dec 31st to cancel my account if I don't want it (basically, you're taking this or we're closing your account). Well on the back it listed something called "pay over time" and to me it sounds basically like a credit limit. I'm kind of confused as to what exactly it is.

I'm assuming it's a good thing, right? It says my Pay Over Time limit will be $35,000. That seems ridiculously high. Am I understanding something wrong or what? I may call Amex because I'm so confused right now lol. It doesn't list anything like interest rate, or even really how it works.

Can anyone offer some insight on this? It's for my Zync card.

Everybody has pay over time, and I believe the standard limit is $35k. The interest rate on it is really high and it doesn't mean you can spend up to $35k and carry the balance, it means that if you happen to have anywhere up to a $35k balance on your card, they'll let you carry it for an exorbitant fee. I highly doubt Amex would approve $35k in spending (in a month) for the vast majority of people on this board (conjecture).

I have a feeling that unless your income is equally exorbitant (and they have confirmed this with you[r tax returns]), attempting to carry any balance on a charge card is a surefire way to get either a) a financial review or b) the boot (but at something like 30% interest).

Re: AMEX Pay Over Time?

scenery_guy — Sat, 15 Dec 2012 22:01:33 GMT

I got the same notice, everyone should get it as it's a change in terms. I have yet to see Pay Over Time as an option and I spent $28,300 a few months ago on my Gold card with one purchase topping $19,100. Guess I'm not worthy yet...

Re: AMEX Pay Over Time?

jsickz32 — Sat, 15 Dec 2012 22:12:54 GMT

I dont have this last time i tried the check spendind limit thingy on my green 8k was approved and 11k was approved on goldpr...i guess im not there yet for this offer

Re: AMEX Pay Over Time?

webhopper — Sat, 15 Dec 2012 22:27:38 GMT

@kekrre wrote:
@Anonymous wrote:
Hey guys.

So today I got a letter in the mail from AMEX saying they're making changes to my account effective Jan 1st, and I have until Dec 31st to cancel my account if I don't want it (basically, you're taking this or we're closing your account). Well on the back it listed something called "pay over time" and to me it sounds basically like a credit limit. I'm kind of confused as to what exactly it is.

I'm assuming it's a good thing, right? It says my Pay Over Time limit will be $35,000. That seems ridiculously high. Am I understanding something wrong or what? I may call Amex because I'm so confused right now lol. It doesn't list anything like interest rate, or even really how it works.

Can anyone offer some insight on this? It's for my Zync card.
Everybody has pay over time, and I believe the standard limit is $35k. The interest rate on it is really high and it doesn't mean you can spend up to $35k and carry the balance, it means that if you happen to have anywhere up to a $35k balance on your card, they'll let you carry it for an exorbitant fee. I highly doubt Amex would approve $35k in spending (in a month) for the vast majority of people on this board (conjecture).

I have a feeling that unless your income is equally exorbitant (and they have confirmed this with you[r tax returns]), attempting to carry any balance on a charge card is a surefire way to get either a) a financial review or b) the boot (but at something like 30% interest).

I disagree with the statement that everyone has this. My account does not have the pay over time option.

Re: AMEX Pay Over Time?

cashnocredit — Sat, 15 Dec 2012 23:51:39 GMT

Pay Over Time has a universal max of 35k. This is true for charge cards all the way up to Centurion. This doesn't mean that any given purchase will be eligible or that it is in some way a CL of 35k. It's just the max for any and all charge cards. The reason is that they securitize these debts and sell them to accredited folks/institutions interested in higher income rates than you get in an insured bank. Amex has filed SEC disclosures on these puppies and there is a wealth of info on historical default rates amongst other things in these filings. The 35k limit can be found in these filings as well as the cardmember agreements for each of their charge cards.

Re: AMEX Pay Over Time?

cashnocredit — Sun, 16 Dec 2012 00:00:39 GMT

@webhopper wrote:
Pay over time is a really neat feature that allows you to select larger purchases and pay them as installments. Its on other charge cards but zync was previously not enrolled in this feature. For more info go to https://www.americanexpress.com/us/content/pay-over-time/loc.html

Amex has dangled 5k MR points on the web site just for signing up for POT which I haven't done yet. The last time I spoke to a CSR they said they would grant 10k MR points for signing up and pointed out I was under no obligation to actually use it. He even said that lots of people just sign up for the extra MR points. I believe that!

From my POV, POT is kinda like a siggy or world card where you can spend over the CL but just have to pay down below the CL. My siggy and world card both have lower interest rates than Amex's POT.

Re: AMEX Pay Over Time?

nicholasyud — Sun, 16 Dec 2012 00:30:43 GMT

I'm about to ask the same question since i just received their letter. I had the Green used like 1.8k last months check spending ability for 5k denied. 4k approved.

Wouldnt wanna get myself in debt so forget about that 35000.........They make me miss my CApital one so bad about their $350 credit limit lol......now its 35000.....

Re: AMEX Pay Over Time?

Anonymous — Sun, 16 Dec 2012 01:31:12 GMT

Thanks for all of the responses!

So it basically sounds like something I'm probably never going to use lol. I was just really shocked by the limit...I'm a recent college grad, without a lot of income and I rarely put more than $300 through my Zync a month, so hearing something with a $35,000 limit just had me totally flabbergasted.

I don't make any large purchases, and even if I did I'd probably put it on one of my CC's. But I guess it's good to have it there, you never know!

Re: AMEX Pay Over Time?

Anonymous — Sun, 16 Dec 2012 01:46:33 GMT

I received the same letter with the same limit. No Apr or nothing and I have never used my zync los.

Re: AMEX Pay Over Time?

Epcot — Sun, 16 Dec 2012 03:35:45 GMT

Just got the same letter.

Re: AMEX Pay Over Time?

jsickz32 — Sun, 16 Dec 2012 03:46:49 GMT

Im hoping i get that letter aswell!

Re: AMEX Pay Over Time?

buildingitbackup — Mon, 17 Dec 2012 23:56:32 GMT

Same letter. Does this mean high limit on credit report will be 35k?

Re: AMEX Pay Over Time?

cashnocredit — Tue, 18 Dec 2012 00:02:45 GMT

@buildingitbackup wrote:

Same letter. Does this mean high limit on credit report will be 35k?

No. It's an upper limit imposed on the whole class of charge cards. An individual will typically have a lower limt.

Re: AMEX Pay Over Time?

buildingitbackup — Tue, 18 Dec 2012 00:11:37 GMT

So AMEX will start reporting a utilization percentage instead of your total balance that is to be paid in full each month?

Re: AMEX Pay Over Time?

cashnocredit — Tue, 18 Dec 2012 00:27:22 GMT

@buildingitbackup wrote:
So AMEX will start reporting a utilization percentage instead of your total balance that is to be paid in full each month?

It's a good question how Amex reports balances. Their charge cards typically report balances as due each month. Maybe they seperate out the portion that is payable over time. The user has to select those purchases >$100 they wish to POT. It's not automatic and it's only available on those purchases Amex elects to extend the offer on. No doubt it varies.