@jamesdwi wrote:For those that are thinking about buying a house or car in the near future using POT can cause major issues with your DTI, an your minimum payment will include your payment to complete your plan-it payment. charge $6,000, and select 12 monthly payments, your minimum payment is reported at $500 plus any other charges you have on the card. Depending on your underwriter, they may include it. Where as the same $6000 on a revolver may raise your minimum payment a couple of hundred. $300 could make a big dent in your DTI calculation.
I was carrying around $50k in POT when I did my first mortgage, and while yes it creates havoc with automatic DTI calculations (since it appeared I had an additional $50,000 minimum payment every month), underwriters understand that it's an Amex charge card and will adjust that accordingly.
@Anonymous wrote:I've not seen this show up on my Gold card as yet, so I'm thinking this might be targeted. Probaly to people actually using their cards. lol
In fact I was just on their the other day checking my ED Plan It balance and to PIF, and just before that I thought i'd look at the Plan it breakdown they usually have at the top of the page. Unfortunately it had an error, the same error I've been seeing the last two weeks.
However, this last time I noticed that it automatically switched to the Gold Card which doesn't have a balance or Plan it terms. So I think there is some kind of glitch in the system for me where when I click on the plan it link it takes me back to my home card.
Tomorrow is the last day for free plan it and it almost pains me that I couldn't take advantage of it. lol
Do you have POT Direct, or POT Select as your choice on the Charge cards? In the language in my May Green, Gold, and Platinum cards, if you have POT Select as we get into August, then those may be converted to allow Plan It to be selected. POT Direct accounts will remain as POT default, renamed to simple POT, and I got the impression those would not propose Plan It as an option on charges, only propose POT.
Thus, on each Charge card, I checked to ensure each was on POT Select going into August. That may be an overreaction on my part, but I don't want anything to do with POT going forward.
All three of my charge cards, all personal, have had August statements now. Score:
Green card, Plan It is activated. Changed Autopay to Adjusted Balance. Noted rates in an earlier post in this thread.
Gold Card, no Plan It available. Have a $4k charge I'd like to put on Plan It, so we'll see. No option to change Autopay to Adjusted Balance, futher indicating Plan It is not active on this card. POT is set to Off, which reflects the new structure of Pay Over Time, and should lead to Plan It being available.
Platinum Card, Plan It is available. Changed Autopay to Adjusted Balance. No charges over $100 to test Plan It rates.