Amex Blue Carrying balance question

[tianapb725]

Hello all - I've been these boards doing some research and found a lot of the information useful, so thank you!

I currently have an Amex Blue card and have had it for a little over a year now.  I've come to a point now, where I won't really be able to pay "a lot" off of the balance like I used to.  I currently have a balance of $1800 and will probably only be able to make about a $50-100 pmt off of the balance each month.  Normally, I would charge something and pay it off immediately, or a large portion of it (normally my payments were ranging from $500-1,000).

Based on what I've read on these posts, it sounds like Amex doesn't really like when their members carry a balance or when they make large payments towards the balance.  Should I transfer the balance to another card or just make my payments of $50-100 towards the balance?

Thanks!  Hope that wasn't too long-winded haha.

[Anonymous]

Well, you might be a little safer than others since you've had the card for a year or so. Do you plan on carrying a balance for more than 3 or 4 months? If so, I would BT it.

[Anonymous]

Amex is squeamish, and in panic mode these days. In the past, I've revolved balances anywhere from 6 mos to 1 year on my Optima Platinum, and never had a problem. Nowadays, it seems like they panic when they see high utilization. Is the 1800 your only balance? If so, you are probably OK. If your utilization is high on other cards, I'd try to transfer it somewhere else.

[Anonymous]

That's a big enough balance that if I weren't going to be able to pay it off in 3 or 4 months, I might BT it regardless of who the issuer of the card were if I had any 0% or low APR BT offers.  Do you have any cards with a lot of time left on an intro APR for BTs?  Or a low lifetime BT rate?

[Anonymous]

I vote for BT.  3-4 months should be the general rule on paying off balances with Amex.  If you can't do that, BT it PDQ.

[KingAdrock]

What's the CL on your Amex? The util% should be taken into account before deciding to BT or not.

[Anonymous]

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KingAdrock wrote:
What's the CL on your Amex? The util% should be taken into account before deciding to BT or not.

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When the question is about carrying a balance on an Amex for an extended period, util % is a very minor consideration, IMO.

When Amex chases the balance or closes the account altogether, that will hurt utilization, too.  Avoid that scenario if at all possible.

[KingAdrock]

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@Anonymous wrote:

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KingAdrock wrote: What's the CL on your Amex? The util% should be taken into account before deciding to BT or not.

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When the question is about carrying a balance on an Amex for an extended period, util % is a very minor consideration, IMO.

When Amex chases the balance or closes the account altogether, that will hurt utilization, too. Avoid that scenario if at all possible.

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I'd just think if $1800 was already a red flag util%, then yes BT ASAP. But if the CL were say 20k, the situation is less dire. I think util% is pertinent information, even if it just changes the question to BT now or BT later.

[tianapb725]

I have a credit limit of $10,000 and I will probably carry the balance for 6 months.  I do have an interest rate of 0% for about 10 months left on another card.  No other balances on any other cards.

Edit by cheddar to remove incomplete posts.

Message Edited by cheddar on 06-11-2008 08:05 PM

[Anonymous]

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tianapb725 wrote:

I have a credit limit of $10,000 and I will probably carry the balance for 6 months.  I do have an interest rate of 0% for about 10 months left on another card.  No other balances on any other cards.

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At 6 months, with a short history with AMEX, I would say you would be fine.  6 months is borderline imho, but if you're sure you can have it paid off no more than 6 months, I would say either a BT or paying on the AMEX would work.  I would just BT it if you have a card with a good BT offer.