Amex Pushing Charge Cards to Pay Over Time

Anonymous · ‎02-25-2020

From what I've seen thus far, a lot of people are saying that Amex is trying to get away from the "charge card" moniker and automatically opting in people for a pay over time limit. The reasoning behind it being that if you're going to default, at least they will be getting interest charges. Has this happened to anyone. Any other insights?

NimbusIII · ‎02-25-2020

It's not upfront. They do seem to be pushing it more as an option to increase spending on the charge cards. It is not something you can request either. It usually come in your offers section around 6+-. I can not attest to offers being made on second or sequential cards as I only have need for one. Hopefully others will chime in with more extensive details.

“The man who says he can, and the man who says he can not… Are both correct.”

Anonymous · ‎02-25-2020

My first charge card was the old gold card (PRG). I did not have pay over time when I first opened the account. After 6 months, they automatically gave me a 10K pay over time limit. A very short time later, 3 months at most, they sent me an offer. They would give me a bunch of MR points if I elected the pay over time direct instead of the pay over time select. I took this offer. Once I changed to the direct option, they automatically increased my limit to 35K. This card was later upgraded to a Platinum for a 60K MR bonus. I recently opened the new green card. Once I did, I was automatically given a 35K pay over time direct limit separate from the platinum one. I have never paid any interest to Amex.

Anonymous · ‎02-25-2020

@Anonymous wrote:
My first charge card was the old gold card (PRG). I did not have pay over time when I first opened the account. After 6 months, they automatically gave me a 10K pay over time limit. A very short time later, 3 months at most, they sent me an offer. They would give me a bunch of MR points if I elected the pay over time direct instead of the pay over time select. I took this offer. Once I changed to the direct option, they automatically increased my limit to 35K. This card was later upgraded to a Platinum for a 60K MR bonus. I recently opened the new green card. Once I did, I was automatically given a 35K pay over time direct limit separate from the platinum one. I have never paid any interest to Amex.

That does seem to support the theory that it only really affects you if you default. If you defaulted on a standard charge card they would just have you on the hook for $35k. But since you have elected for pay over time direct....they've got you for $35k PLUS whatever interest rate you have agreed too. ALSO they get to market their cards as more like "flexible spending credit cards" than solely charge cards.

Brian_Earl_Spilner · ‎02-25-2020

@NimbusIII wrote:
It's not upfront. They do seem to be pushing it more as an option to increase spending on the charge cards. It is not something you can request either. It usually come in your offers section around 6+-. I can not attest to offers being made on second or sequential cards as I only have need for one. Hopefully other can chime in with more extensive details.

Actually, if you qualify at sign up, any qualifying purchases are automatically set for POT by default. It's called POT Direct. You have to opt for POT Select which is where you choose what is set for POT.

EDIT: since you have a charge, I'm sure you know the programs. The above was for anyone not aware.

Anonymous · ‎02-25-2020

I also noticed that on my platinum card, a purchase must be $100 or more to go into the pay over time balance. On my new green card, all purchases go into the pay over time balance regardless of size.

Brian_Earl_Spilner · ‎02-25-2020

@Anonymous wrote:
I also noticed that on my platinum card, a purchase must be $100 or more to go into the pay over time balance. On my new green card, all purchases go into the pay over time balance regardless of size.

My gold requires a charge to be $100 or more.

Anonymous · ‎02-26-2020

My Gold also has a $100 minimum for POT. I didn't know the Green had no such line in the sand.

Anonymous · ‎02-26-2020

You must have watched Sebby's latest video ; ) Pay Over Time is really a win win for Amex and their card holders. You can carry a balance, if needed.. without increasing your reported utilization, and the 19% rate isn't as high as what I've seen on other cards. I've had the $35K limit on my Platinum since opening the account and have carried large purchase balances for a couple of months on two occasions. I hope they keep it as is because it's a great borrowing tool...

Anonymous · ‎02-26-2020

@Anonymous wrote:
You must have watched Sebby's latest video ; ) Pay Over Time is really a win win for Amex and their card holders. You can carry a balance, if needed.. without increasing your reported utilization, and the 19% rate isn't as high as what I've seen on other cards. I've had the $35K limit on my Platinum since opening the account and have carried large purchase balances for a couple of months on two occasions. I hope they keep it as is because it's a great borrowing tool...

I DID watch the video. And it makes perfect sense