topic Re: About the 0% introductory APR on the Amex BCP I got today in Credit Cards

About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 07:03:58 GMT

I have never used the "0% intro APR on purchases for 12 months" on any of my credit cards (paranoia) but wanted to test the waters with the Amex BCP I got today.

I have a rewards checking account that has a 3% APY so depositing the corresponding amounts (that get charged to the Amex BCP) to the rewards checking account would get me something good in a year's time!

... and when the year is about to end, I can pay all of it in one BIG payment since I already have the cash saved up in the rewards checking account :-D

So the magic question is this: how do I actually avail the "0% intro APR on purchases for 12 months" on the Amex BCP?

1. Do I have to make the monthly minimum payments?

2. Do they keep track of the interest on the balance and bill me at the end of the year? (this would be very sneaky but I have seen some CC do this and claim "no interest for first 12 mo")

3. ... some other "trick"?

This sounds pretty good to me if it actually is a "0% intro APR on purchases for 12 months" fair and square but I have my doubts!

Re: About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 07:06:42 GMT

Yes you still have monthly payments to make.

Unlike store cards, the BCP interest rates are not retroactive for the entire balance.

Putting high balances while only paying minimum always comes with the higher risk of AA for all lenders, especially Amex.

Re: About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 07:16:23 GMT

+1

Although a revolver, Amex can't shake its roots as a charge card company. They do not like balances bring carried for an extended period of time. I'd suggest finding another cc to reap the benefits.

Re: About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 07:16:36 GMT

Hmm, so this *is* a true 0% APR card but in order for me to enjoy that, I DO have to make the minimum monthly payment, but that's all it will take?

Your point about AA makes me nervous:

1. I am a bit nervous about Penfed doing an AA (BCP is my other card after Penfed's this month)

2. My CLI was increased automatically by one lender so I do have a lot of available credit to exploit, and conservative lenders might not like the idea

3. Amex might AA on me (but seems unlikely since they offered it to me in the first place!)

So how about this:

I PIF (prepay?) ALL my CCs so they report a $0 statement balance but carry the (growing) balance on the BCP?

Will Penfed AA me with their pyramyding debt thing?

Re: About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 07:26:56 GMT

Amex does not like balances to be carried. Ultimately it's your decision but not a wise one IMO

Re: About the 0% introductory APR on the Amex BCP I got today

azguy13 — Tue, 30 Jul 2013 10:24:18 GMT

@Anonymous wrote:
Amex does not like balances to be carried. Ultimately it's your decision but not a wise one IMO

I had an AMEX a few years back and had about a $7K balance with a $13K CL. I decided to pay down some other cards first leaving me to pay the AMEX with minimum payments. After 4 billing cycles I was asked to close my account. Well, it has been 4 years and the account still reads as "closed at creditor's request." I am worried it will haunt me for many years to come. I would love the Delta Airlines Amex but I am afraid I am blacklisted. BTW, the card was paid off about 9 months later.

That was well before I found this treasure chest of info.

Re: About the 0% introductory APR on the Amex BCP I got today

OptimalCS — Tue, 30 Jul 2013 10:35:20 GMT

Try to charge only what you can afford to pay off in full each month.

I also never use more than 10% of my available credit.

Re: About the 0% introductory APR on the Amex BCP I got today

ezdoesit — Tue, 30 Jul 2013 10:37:14 GMT

@azguy13 wrote:
@Anonymous wrote:
Amex does not like balances to be carried. Ultimately it's your decision but not a wise one IMO
I had an AMEX a few years back and had about a $7K balance with a $13K CL. I decided to pay down some other cards first leaving me to pay the AMEX with minimum payments. After 4 billing cycles I was asked to close my account. Well, it has been 4 years and the account still reads as "closed at creditor's request." I am worried it will haunt me for many years to come. I would love the Delta Airlines Amex but I am afraid I am blacklisted. BTW, the card was paid off about 9 months later.

That was well before I found this treasure chest of info.

If you happened to have had the money at that time to pay a substantial part of the 7k would they have still closed your account?

Re: About the 0% introductory APR on the Amex BCP I got today

azguy13 — Tue, 30 Jul 2013 10:40:09 GMT

@ezdoesit wrote:
@azguy13 wrote:
@Anonymous wrote:
Amex does not like balances to be carried. Ultimately it's your decision but not a wise one IMO
I had an AMEX a few years back and had about a $7K balance with a $13K CL. I decided to pay down some other cards first leaving me to pay the AMEX with minimum payments. After 4 billing cycles I was asked to close my account. Well, it has been 4 years and the account still reads as "closed at creditor's request." I am worried it will haunt me for many years to come. I would love the Delta Airlines Amex but I am afraid I am blacklisted. BTW, the card was paid off about 9 months later.

That was well before I found this treasure chest of info.
If you happened to have had the money at that time to pay a substantial part of the 7k would they have still closed your account?

I'm not sure to be honest. Either way, I did not have a substantial amount at that time. That was back before I knew about recon, EO, and just pleading my case in general. Plus, I didnt think it was a big deal. I had no idea what it would do to my future credit-worthiness. What I may do is email or call Amex and just ask if there is a possibilty to get back in with them.

Re: About the 0% introductory APR on the Amex BCP I got today

youngandcreditwrthy — Tue, 30 Jul 2013 13:19:52 GMT

I have had my Amex BCE almost a year and have received no AA. Also got approved for a $5500 Delta Gold with a $4k bal on BCE.
I think what you need to do is:
The first few months- pif! So you can get a 3xcli!
If you want to carry a balance and utilize the 0%, just make sure you're paying 10-20% of the total balance! Example: I've been revolving a $3-4k bal for at least five or six months, but I make sure I pay at least $400 on it every month, sometimes paying $800+, BUT the first 3-4 months I pif. Amex is a lender you wanna take it slow with, like eating flan mmmmm. With Amex, you want to IGNORE the minimum payment. Paying the min with Amex is like Amex's way to trick you into closing your account. Even in 0%, I will not just pay the minimum. Amex is comfortable with high debt levels, but reasonably so given Amex's perception of being "affluent" and for wealthier customers(not me!) I had $10k cc debt when Amex approved me, but I have the ability to pay as evidenced by my pmt history.

Re: About the 0% introductory APR on the Amex BCP I got today

Quips — Tue, 30 Jul 2013 14:03:33 GMT

I took full advantage of this offer last year when I got my BCP. I put my sons tuition on it plus other purchases and never had an issue. I was carrying balances of 60-70% of the credit limit for most of the year. I made montly payments - sometimes just the minimum and sometimes a bit more (maybe $500 or a $1K). I had the card at $18K for about 6-8 mths before paying it off right at the end of the first year.

Re: About the 0% introductory APR on the Amex BCP I got today

Anonymous — Tue, 30 Jul 2013 14:23:02 GMT

Nearly all of these "rules" are just guesses based on incomplete data, which leads to the YMMV comment on almost everything. So, equally guessing, it's possible that carrying a balance for an extended period of time raises a flag, but this just causes Amex to look at your general situation. If you are carrying a balance, but appear to be in fine financial shape, that's ok. If you are a carrying balance, and it appears that you WOULD have problems paying it off, then maybe there will be AA.

But blanket statements like "Amex doesn't like you carrying a balance" are at best statistical based on small samples.

Re: About the 0% introductory APR on the Amex BCP I got today

parakleet — Tue, 30 Jul 2013 14:29:26 GMT

@Anonymous wrote:
Nearly all of these "rules" are just guesses based on incomplete data, which leads to the YMMV comment on almost everything. So, equally guessing, it's possible that carrying a balance for an extended period of time raises a flag, but this just causes Amex to look at your general situation. If you are carrying a balance, but appear to be in fine financial shape, that's ok. If you are a carrying balance, and it appears that you WOULD have problems paying it off, then maybe there will be AA.

But blanket statements like "Amex doesn't like you carrying a balance" are at best statistical based on small samples.

+1 This. Sometimes, the advice on the forum can get a little scare-mongering. Don't build up massive amounts of CC debt and not expect AA. But what's considered "massive" amount of debt will be different for each person based on their entire profile.