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Amex - Raises Minimum payment due

Tonya-E
Established Contributor

Amex - Raises Minimum payment due

I saw on my recent statement that the minimum payment due for Amex has increased. This won't affect anyone that uses the PIF method, but may be noteworthy if you carry a balance. This is the example they provided: To calculate the Minimum Payment Due for each billing statement, we start with the highest of: (1) Interest charged on the billing statement plus 1% of the New Balance (excluding any interest, penalty fees, overlimit amount, and plan balances); or (2) 2% of the New Balance (excluding any penalty fees, overlimit amount, and plan balances); or (3) $40. Then we add any penalty fees shown on the billing statement, up to 1/24th of any overlimit amount, any plan payment due, and any amount past due. Your Minimum Payment Due will not exceed your New Balance. You may pay more than the Minimum Payment Due, up to your New Balance, at any time. EXAMPLE: Assume that your New Balance is $2,900, interest is $29.57, and you have no active plans, overlimit amount, penalty fees, or amounts past due. (1) $29.57 + 1% multiplied by ($2,900 - $29.57) = $58.27 (2) $58 (2% of $2,900) (3) $40 The highest of (1), (2) or (3) is $58.27 If your account has any active plans, overlimit amount, penalty fees, or amounts past due, your Minimum Payment Due will be higher.
Wallet: Amex BCP-39k| Barclays Rewards MC-26.3k| Citi Thank You Preferred-27.5k| Citi Double Cash-14k| Target MC-11k| Walmart MC-7.5k| Chase Freedom Unlimited Signature-6k


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UpperNwGuy
Valued Contributor

Re: Amex - Raises Minimum payment due

The new minimum is still a mighty low number relative to the outstanding balance.

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Message 2 of 19
Tonya-E
Established Contributor

Re: Amex - Raises Minimum payment due


@UpperNwGuy wrote:

The new minimum is still a mighty low number relative to the outstanding balance.


Tis true...but oh my, that's how those minimums get you.....
Wallet: Amex BCP-39k| Barclays Rewards MC-26.3k| Citi Thank You Preferred-27.5k| Citi Double Cash-14k| Target MC-11k| Walmart MC-7.5k| Chase Freedom Unlimited Signature-6k


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MusicLovah7
Regular Contributor

Re: Amex - Raises Minimum payment due

I took advantage of some plan it pay over time offers and that increased my minimum payment significantly. Used to be $30 now it's $166! But it's on a 0% interest card (Amex Everyday) so I will be carrying a 19% balance on that for the next yr...slowly paying it down while on my other cards I PIF.

Message 4 of 19
Tonya-E
Established Contributor

Re: Amex - Raises Minimum payment due


@MusicLovah7 wrote:

I took advantage of some plan it pay over time offers and that increased my minimum payment significantly. Used to be $30 now it's $166! But it's on a 0% interest card (Amex Everyday) so I will be carrying a 19% balance on that for the next yr...slowly paying it down while on my other cards I PIF.


Yeah that’s a huge jump! When I saw it I was like well it doesn’t appear too bad until you start having a higher balance. Then when I did the calculations it would be a huge difference. At least it’s at 0% interest though!!!
Wallet: Amex BCP-39k| Barclays Rewards MC-26.3k| Citi Thank You Preferred-27.5k| Citi Double Cash-14k| Target MC-11k| Walmart MC-7.5k| Chase Freedom Unlimited Signature-6k


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Message 5 of 19
MusicLovah7
Regular Contributor

Re: Amex - Raises Minimum payment due

Yea once I had the balance plus the multiple plan its - it adds up! I pay a few times a month but it's not my first priority since I can take advantage of the 0% for 12 more mths. I can only imagine how much worse it is on a card that charges interest. 

Message 6 of 19
Tonya-E
Established Contributor

Re: Amex - Raises Minimum payment due


@MusicLovah7 wrote:

Yea once I had the balance plus the multiple plan its - it adds up! I pay a few times a month but it's not my first priority since I can take advantage of the 0% for 12 more mths. I can only imagine how much worse it is on a card that charges interest. 


I wonder if anyone up here has experienced the increase with interest. I just get curious on things like this. Thanks for commenting! It gives us some perspective.
Wallet: Amex BCP-39k| Barclays Rewards MC-26.3k| Citi Thank You Preferred-27.5k| Citi Double Cash-14k| Target MC-11k| Walmart MC-7.5k| Chase Freedom Unlimited Signature-6k


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Message 7 of 19
FlaDude
Established Contributor

Re: Amex - Raises Minimum payment due

I think they might be doing this selectively rather than across the board. I have an ED card that I used for a BT and had been paying pretty close to minimum on, they changed my mininum from 1% to 2% last December on a balance of around $4500. No biggie for me, I PIF before the promotional interest rate expired, but maybe they don't like customers paying minimums on an ongoing basis. They must not have been too spooked, I have over 50 CL accross my Amex cards and they didn't CLD me on any of them.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, Amex Hilton Surpass, BoA Platinum Plus, Chase Freedom Unlimited, Chase Amazon, Chase CSP, Chase United Explorer, Citi AA Plat, Sync Lowes, Sync JC Penney - total CL 145k
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Message 8 of 19
Remedios
Moderator

Re: Amex - Raises Minimum payment due

Minimum payments are not assigned on individual basis. 

The amount may differ based on the balance, but calculations are identical across the board. 

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Message 9 of 19
Janus
Senior Contributor

Re: Amex - Raises Minimum payment due


@MusicLovah7 wrote:

I took advantage of some plan it pay over time offers and that increased my minimum payment significantly. Used to be $30 now it's $166! But it's on a 0% interest card (Amex Everyday) so I will be carrying a 19% balance on that for the next yr...slowly paying it down while on my other cards I PIF.


 

Do you mean to say that you utilized Plan it on an existing  0% rate? If so, why?  In my mind if your current rate is already 0% then there wouldn't really be a reason for Plan it. 






Message 10 of 19
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