AMEX Pay Over Time vs Pay In Full

arifjk · ‎07-28-2022

I just got my first statement from AMEX. What is confusing for me is that why all of the charges go to Pay Over Time automatically instead of to the Pay In Full bucket? Was it because I turned it on? So, all charges go to POT first, and any thing over the POT will be in the PIF bucket? I know if I pay the statement in full, it will not matter, but if I don't, then I guess I am required to the whole PIF bucket amount first, correct?

Just wanted to some clarification.

AVEN Visa $80k; BCU LOC $50k; PSECU LOC: $20K; Langley FCU LOC $10K; CuSoCal LOC $25k; BECU LOC: 15k; Apple FCU LOC $20k

jcooks · ‎07-28-2022

Pay over time is essentially just a way to use the charge card as a credit card and let a balance revolve. Unfortunately, anything that revolves is subject to interest. There is a Pay Over Time limit, any single charge that puts you over your Pay Over Time limit, will have to be paid in full at your statement closing. That's why there are different amounts in each.

Credit12Fico · ‎07-28-2022

@arifjk wrote:
I just got my first statement from AMEX. What is confusing for me is that why all of the charges goes to Pay Over Time automatically instead of to the Pay In Full bucket? Was it because I turn it on? So, all charges go to POT first, and any thing over the POT will be in the PIF bucket? I know if I pay the statement in full, it will not matter, but if I don't, then I guess I am required to the whole PIF bucket amount first, correct?

Just wanted to some clarification.

Yes, when you have it turned on, charges automatically go to Pay over time (PoT) balance. The only way a purchase can go to your pay over time balance is by having that switch turned on. If it's off and you make a charge which post to your account, there is no way to move a non-PoT balance into PoT.