topic Re: Amex pay over time option? in Credit Cards

Amex pay over time option?

Dishpro — Wed, 25 Jul 2012 02:52:54 GMT

I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.

Re: Amex pay over time option?

Creditaddict — Wed, 25 Jul 2012 03:37:56 GMT

@Dishpro wrote:
I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.

Your charging ability will be frozen instantly.

When you do pay off the Pay over time you will be lucky if you have a hard set limit... I bet it would be CLOSED!

We have talked about this in the past... its almost like a test... who will take it... If you have a charge card and you need or want to carry some balance to amex is you are having money problems!

I mean not sure if you saw everything happening in like 2009-2010... Amex came out with several BT offers for life of balance... then the economy crashed and Amex couldn't close, slash, and take faster then you could cut up your card!!

Re: Amex pay over time option?

Dishpro — Wed, 25 Jul 2012 04:18:54 GMT

That's what I was afraid of. I really appreciate your input. I almost pulled the trigger, thought it sounded weird. Thanks....

Re: Amex pay over time option?

jsucool76 — Wed, 25 Jul 2012 04:26:23 GMT

Wow, thats kinda mean of amex to do.

"Hey would you like to pay your balance over time"

"Yes!"

"TOO BAD, ACCOUNT CLOSED, MWAHAHAHAHA"

Re: Amex pay over time option?

Dishpro — Wed, 25 Jul 2012 04:27:43 GMT

I wanted the card to use instead of my regular cards and my debit. Should I start out slow and work my way up to around $5,000 mo.or should I just gradually build up to 5 or 6k mo.?

Re: Amex pay over time option?

Anonymous — Wed, 25 Jul 2012 04:37:34 GMT

I have an Amex Platinum and a PRG and signed up for the pay over time feature on both of them. However, I waited until after the first anniversary on each and also only did it after they offered 5K points on each to sign up. I have never used it and doubt that I ever would but it was good for 10k MR points. I would definitely wait for at least 6 months if it were me and you might even be offered a bonus for doing it.

Re: Amex pay over time option?

Anonymous — Wed, 25 Jul 2012 05:04:48 GMT

Seems risky. Might want to stay on safe ground if you can pay in full.

Re: Amex pay over time option?

improvingmycredit — Wed, 25 Jul 2012 09:23:13 GMT

I subscribed to this service to get the 5K bonus sign up. I don't think I will be using this service but I don't see the harm in doing so if you pay responsibily and pay it off with in a couple of months. My parents have used it in the past for a couple of big vacations and no problem what so ever. The service wouldn't be offered if it wasn't meant to be used responsibily. For what it's worth, probably not the best choice for financing anything if other options are available. The APR is higher then most revolvers. I think many over think Amex. They offer their products to be used, not as a ploy to doop people into signing up to be kicked out as a card member.

Re: Amex pay over time option?

OptimalFICO — Wed, 25 Jul 2012 09:41:34 GMT

I agree with improvingmycredit. I have AmEx Green. I signed up for this feature and used it steadily for several months while allowing my sister to run her business off my card temporarily. My account had been open for years with stellar history prior to this, but I had no impact whatsoever by signing up and using this option. However, this was also back in 2002-2004 range, before the crash. I do recall that the interest rate was insane! And paying off the balance was crazy because the interest accrues so fast. I would pay what I thought was the balance, and then I'd get a bill for remaining interest. I'd pay that, and then get another bill. Finally I just paid a huge amount so that a credit posted. My sister got her own card and I never used the option again.

Re: Amex pay over time option?

navigatethis12 — Wed, 25 Jul 2012 12:45:06 GMT

@Dishpro wrote:
I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.

This is the kind of apprehensiveness that makes me wonder why so many people worship American Express. You can be sure that you do not have to worry about carrying a balance for a short period of time with any other issuer. I would just use it if you need to and if they set a limit then go to another card. Why do they give people the options to do so many things and then punish them when they are utilised.

Re: Amex pay over time option?

RockinRay — Wed, 25 Jul 2012 12:49:42 GMT

You are all over-worried about this!

If you read some of the past threads about this, you wilo learn that not everyone is made this offer and it is an "upgrade if you will" to your account.

When I carried my Zync and Green cards, this was offered and I used it on both cards. Never had any issues at all.

Amex would not offer this to try and "trick" you nor would they close your account for using this unless you abused it.

JMO - but this is worry for nothing.

Re: Amex pay over time option?

Anonymous — Mon, 03 Jun 2013 01:17:37 GMT

@Dishpro wrote:
I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.

So whatever happened as a result of this? Did you run in to any issues? I'm surprised by the responses you received as I had this feature on my Platinum and had ZERO issues and at times would have 10k or more, I would then pay it off.. Then, a couple of days ago, I received my GPR card and like you, I was offered this UPGRADE when I was activating my card and all is well.. I'm interested in hearing how it went for you.. I've had zero issues in the past..

Re: Amex pay over time option?

MustangSaluki — Mon, 03 Jun 2013 05:17:30 GMT

I recently had a chance to convert both Platinum and PRG to pay over time feature for 10K MR points. Both of these were opened in January this year. Application decision is based on the last soft pull, just like CLIs.

I received details on the conversion in separate mails each for Plat and PRG. Both came with 18% APR and interestingly both showed a credit limit of $35,000 each. I think this is a painful way of knowing your "spending ability" for charge cards. I also have the Amex Hilton Honors with CL $24,900. It totally makes sense now why Amex asked for 4506T for the BCP CLI from $4,000 too $12,000 earlier in January. With almost $100k exposed in CL from Amex, my internal score must have been on the risky side. These limits will report to the CRAs in July when the feature goes into effect, but now I am having buyer's remorse from all this. I really don't want to scare other lenders by exposing limits of a previously reporting charge card.

I will find out if reneging the conversion is a possibility. They can keep the points if it helps.

Re: Amex pay over time option?

indiolatino61 — Mon, 03 Jun 2013 05:43:06 GMT

@Creditaddict wrote:
@Dishpro wrote:
I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.
Your charging ability will be frozen instantly.
When you do pay off the Pay over time you will be lucky if you have a hard set limit... I bet it would be CLOSED!

We have talked about this in the past... its almost like a test... who will take it... If you have a charge card and you need or want to carry some balance to amex is you are having money problems!

I mean not sure if you saw everything happening in like 2009-2010... Amex came out with several BT offers for life of balance... then the economy crashed and Amex couldn't close, slash, and take faster then you could cut up your card!!

I'd have to agree...even though it seems "childish" to test you like that. I gather to AmEx, if you apply for a charge card, that is what you want. If you want to carry balances, then you should apply for a revolver. Yes, it is convoluted logic on their part to offer you something that they rather you not use, but that is one of AmEx's quirks.

Re: Amex pay over time option?

improvingmycredit — Mon, 03 Jun 2013 07:16:58 GMT

@MustangSaluki wrote:
I recently had a chance to convert both Platinum and PRG to pay over time feature for 10K MR points. Both of these were opened in January this year. Application decision is based on the last soft pull, just like CLIs.

I received details on the conversion in separate mails each for Plat and PRG. Both came with 18% APR and interestingly both showed a credit limit of $35,000 each. I think this is a painful way of knowing your "spending ability" for charge cards. I also have the Amex Hilton Honors with CL $24,900. It totally makes sense now why Amex asked for 4506T for the BCP CLI from $4,000 too $12,000 earlier in January. With almost $100k exposed in CL from Amex, my internal score must have been on the risky side. These limits will report to the CRAs in July when the feature goes into effect, but now I am having buyer's remorse from all this. I really don't want to scare other lenders by exposing limits of a previously reporting charge card.

I will find out if reneging the conversion is a possibility. They can keep the points if it helps.

Helllo MustangSaluki!

No worries for you. They don't report the CLs for Charge Cards to the CRAs. It's still business as usual and the card is still reported as NPSL.

Re: Amex pay over time option?

LS2982 — Mon, 03 Jun 2013 10:37:45 GMT

@Creditaddict wrote:
@Dishpro wrote:
I received my AMEX green card in the mail today. While activating the card it gave me the option of opting for a pay over time feature for purchases over $100. Does anyone know how this affects my account. I am worried that they might set a hard limit based on the use of this feature.
Your charging ability will be frozen instantly.
When you do pay off the Pay over time you will be lucky if you have a hard set limit... I bet it would be CLOSED!

We have talked about this in the past... its almost like a test... who will take it... If you have a charge card and you need or want to carry some balance to amex is you are having money problems!

I mean not sure if you saw everything happening in like 2009-2010... Amex came out with several BT offers for life of balance... then the economy crashed and Amex couldn't close, slash, and take faster then you could cut up your card!!

I find this hard to believe. Is there any evidence of this recently??

It goes into effect 6/7 AFAIK.

Re: Amex pay over time option?

LS2982 — Mon, 03 Jun 2013 10:39:31 GMT

@RockinRay wrote:
You are all over-worried about this!

If you read some of the past threads about this, you wilo learn that not everyone is made this offer and it is an "upgrade if you will" to your account.

When I carried my Zync and Green cards, this was offered and I used it on both cards. Never had any issues at all.

Amex would not offer this to try and "trick" you nor would they close your account for using this unless you abused it.

JMO - but this is worry for nothing.

That's exactly what I thought. No worries.

Re: Amex pay over time option?

shakalaka — Mon, 03 Jun 2013 10:57:55 GMT

I have it, I used it, no problems. Why should there be any, they earn money ...

Re: Amex pay over time option?

OptimalFICO — Wed, 11 Sep 2013 06:00:30 GMT

I previously posted about using this option on my Green card and want to clarify -- I had no issues and experienced no limits as a result of taking advantage of this upgrade option to carry a balance. As mentioned, the only issue I had in the end after at least a year of carrying a balance (due to my sister using it to run a business), was making a final payment to clear the balance and interest. I sent in what I thought was the total, but interest accured in the meantime and I finally ended up sending in a larger payment and getting a refund. But the feature was a nice option. I was not penalized in any way for using it.

Of course I had a long and stellar history with AMEX prior to and after that period of use. I drank the Koolaid and love AMEX!

Re: Amex pay over time option?

cashnocredit — Wed, 11 Sep 2013 06:37:43 GMT

The POT "CL" of 35k is the same for everyone that is given, and accepts, the option for Green, Gold, Plat, and Cent. It actually doesn't mean you can spend 35k then put it on POT. Charges over $100 may be eligible for POT but it is up to Amex on each such charge to offer it or not. It also doesn't imply your internal SL is 35k or more.

The reason for the 35k limit on all cards is that Amex securitizes these debts and sells them as high income interest bearing instruments to eligible institutions or individuals. Details of this can be seen in their SEC filings which specify the 35k limit for any individual debt in the portfolio.

Obviously Amex wants people to use this feature otherwise they would have nothing to securitize, They do this for liquidity. It provides more cash for expanding their regular charge card and credit card business.

The only downside is that they will weigh their internal estimates of your financial status differently and more towards income than assets. This is no big deal since that's the standard assumption of the entire credit card industry. Also, since the interest rates are high and accrue at the time of purchase, they can get a good estimate of your income based on payoff speed.

One caution. If you indicated significant savings, say >500k, in an application and then used the POT feature Amex might have some concerns about the reality of the stated savings. They didn't ask this in an app 3 years ago but when I apped for the Plat two years ago they did ask me to check on of various ranges. Something like 0 to 5k, 5k to 25k, and so on up to 500k+