cancel
Showing results for 
Search instead for 
Did you mean: 

Amex Plan It Experiences

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Super Contributor

Re: AMEX Plan It Question

AMEX is shifting their business model to want more carried balances. Any speculation about AA from this is unfounded, as long as you make your payments.

I am contemplating a $10,000 Plan It amount now, though the minimum time of 12 months gives me pause.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 41 of 74
Senior Contributor

Re: AMEX Plan It Question

From the FAQ:

 

"Can I change or cancel my plan once it's been set up?

Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full.  If you pay off a plan early, you won't incur any future plan fees on that plan."

 

Pros:

Convenient

You don't need to apply for a new card

The APR-equivalent is generally better than most other rewards-focused cards

 

Cons:

The terms aren't as good as you could get on a new account (no 0% period)

Determining the amount you want to pay can become complicated if you're also using the card for other spend

The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards

 

I've not used it...but I only carry a balance at 0%.

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 42 of 74
Established Contributor

Re: AMEX Plan It Question

Thanks NRB! I wonder if the balance is reported to CRA's--especially for large purchases.

Life was a lot simpler when what we honored was father and mother, rather than all major credit cards. ~Robert Orben

SCORES: Excellent · 830 to 848
INQUIRIES: 0
UNIVERSAL REVOLVERS: $200K Club
NUMBER OF CC ACCOUNTS: Less than 10
CARD USAGE: Minimal
CREDIT HISTORY: Very Lengthy · Seasoned Accounts
INCOME: Sufficient
UTIL: 1-2%
PYMTS: 100% Positive · Always PIF · AZEO
INSTALLMENTS: No thanks!
ASSETS: 100% Equity
TOTALLY REFUSE TO: Pay Interest or Annual Fees, Combine Accounts, Reduce Limits, Submit 4506-T, SCT, App Spree, Accumulate Inquiries, Do business with Comenity, Synchrony, Cap One, Wells Fargo, Citi, Barclays or any other credit-cancerous lending institutions
Message 43 of 74
Super Contributor

Re: AMEX Plan It Question


@wasCB14 wrote:

From the FAQ:

 

"Can I change or cancel my plan once it's been set up?

Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full.  If you pay off a plan early, you won't incur any future plan fees on that plan."

 

Pros:

Convenient

You don't need to apply for a new card

The APR-equivalent is generally better than most other rewards-focused cards

 

Cons:

The terms aren't as good as you could get on a new account (no 0% period)

Determining the amount you want to pay can become complicated if you're also using the card for other spend

The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards

 

I've not used it...but I only carry a balance at 0%.


 

If you are on a PIF Autopay, the Payment amount is calculated for you as the sum of relevant non-Plan It new charges, plus your Plan It Payment amount. There is no complication to this. That is why I suggest trying it rather than speculating what it is like. 

 

Good to hear the plan can be paid off early without incurring the entire fee. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 44 of 74
Community Leader
Valued Contributor

Re: AMEX Plan It Question


@SOGGIE wrote:
Thanks NRB! I wonder if the balance is reported to CRA's--especially for large purchases.

Your usage will be reported the same as always. 

Discover It: 19.7k
Amex BCE: 18k
Citi DC: 5.7k
~~~~~~~~~~~~~~~~~~
Once you go Berner, you never go back.
Message 45 of 74
Senior Contributor

Re: AMEX Plan It Question


@NRB525 wrote:

@wasCB14 wrote:

From the FAQ:

 

"Can I change or cancel my plan once it's been set up?

Plans cannot be altered or cancelled after they’ve been set up, but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full.  If you pay off a plan early, you won't incur any future plan fees on that plan."

 

Pros:

Convenient

You don't need to apply for a new card

The APR-equivalent is generally better than most other rewards-focused cards

 

Cons:

The terms aren't as good as you could get on a new account (no 0% period)

Determining the amount you want to pay can become complicated if you're also using the card for other spend

The APR may not be as good as you could get on a CU card that prioritizes a low APR over rewards

 

I've not used it...but I only carry a balance at 0%.


 

If you are on a PIF Autopay, the Payment amount is calculated for you as the sum of relevant non-Plan It new charges, plus your Plan It Payment amount. There is no complication to this. That is why I suggest trying it rather than speculating what it is like. 

 

Good to hear the plan can be paid off early without incurring the entire fee. 


Oh, okay. I thought it only affected the minimum payment due.

 

I'll try it when they send me a no-fee general spend Plan offer. The Hilton-spend-only one arrived too late.

 

There are still other potential complications, though. Plans can have different APR equivalents, so someone with extra cash will need to decide which plan to pay off early first. Also, my understanding is that there is no incentive to make a Plan installment payment two weeks before the due date, since the Plan fee is not reduced.

 

Not terribly complicated...but not as simple as dealing purely with regular APRs.

Most spend: CSR, CFU, BBP
Rewards/AAoA ballast: CF, Discover, Costco, ED, Arrival
Perks: Schwab Platinum, IHG49, Hyatt75, Brilliant, Delta Platinum
Potential closures/downgrades: Savor, BCP, Double Cash
Message 46 of 74
Super Contributor

Re: AMEX Plan It Question

I tried it twice. It's nice if you're gonna carry a balance anyway as the fees are less than the app for that amount of time. The only thing I didn't like was that I paid mine off the second month, but it kept showing online that I made a plan. When I checked the balances, they were zero. Today, I received an email congratulating me on paying off the first plan, at the end of the 6 month term.








***AD SPACE AVAILABLE***
Message 47 of 74
Community Leader
Senior Contributor

Re: AMEX Plan It Question

@nrb
Honest, this was the look I had 😳

Please keep us in the loop because I want to know the payments and fee for that amount!
GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $18.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 48 of 74
Super Contributor

Re: AMEX Plan It Question

Just over $800 per year, which is something more than 8% APR when you consider the declining balance during the year. $64 or something per month, which isn’t bad if you want to carry it for three months, still use the card for rewards then pay it off.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 49 of 74
Member

Re: AMEX Plan It Question

I just wanted to chime in a couple of data points

 

Yes, Amex still reports your total balance as your total balance - Plan It does not change your balance. However, because plan it is a payment greement your minimum payment for the next statement is going to be higher then a standard revolver minimum payment for the same balance size.


The impact of these payment agreemnts to your DTI can be surprising.

 

I have a very high CL on my Amex cards. I got a 0% Plan It offer so I used it on a large purchase for my small business.  I thought at the time - free money - why not? The minimum payment after statement cut was ~$7500 per month for 6 months. That was fine, I paid it as my other choice was PIF so I wasn't worried.

 

However,  a couple of months in I applied for a car loan.  I was declined because that extra high amex minimum payment was reported to the CRAs. That high payment took my DTI to above 45% after mortgage, other loans, etc were factored in. I ended up just PIFing my Amex card and waiting a month for it to clear up, but wow I was just not thinking about the DTI impact of the payment agreements.

 

Had never been declined in my life - was baffled at first. Took me a few minutes to figure it out.

 

Just a note/warning from my dumb mistake for others that the Plan It is very nice for flexiblity, but can screw up your DTI.

Message 50 of 74
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.