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and that's my point. if the OP is not using the POT feature, then they are required to pay the balance in full.
i also think there's some confusion over when the PIF happens. you can PIF before the statement cuts so that the statement balance is zero, or you can PIF after the statement cuts but by the payment date. IMO the latter is how the charge card was designed..To PIF after the statement cuts and by the due date (I doubt Amex is penalizing for it). Granted I'm making assumptions, but I took the OP post to mean he is not using POT feature and would leave 400 as the statement balance. which by card design would be his minimum required payment.
i agree POT is not recommended even though it is offered. just use a normal credit card for that.
@Tony542577 wrote:Hey guys,
I got the Amex platinum card 4 months ago and I've spent probably about $14,000 on it with things I've been fixing around my house, I've been paying it but leaving about $400 each month just to pay the interest on it and keep Amex happy making a little money on that side. I've had the money to pay it, it's just I've always put a small balance on new cards so it looks like I used them and paid a little interest too. This last month I paid it off in full and had gotten the statement 0, but yesterday they emailed me that "We're reaching out because we wanted to let you know as quickly as possible that after a recent review, we have assigned a Preset Spending Limit of $25600 to your account." I don't understand why. Before it was no preset spending limit. Should I call and fight it or wait a couple months put more spend and keep paying in full then call?
@Tony542577 Can you explain what you mean when you say "leaving about $400 each month"? I took that to mean you're using "pay over time" but I just wanted to clarify.
@Anonymous wrote:
@DSTforlife wrote:my point is if the OP is letting $400 report on the statement, and spending 14k, surely the payments made covers the statement balance each month...which means they should not be paying any interest. Interest doesn't start unless there's a remaining statement balance left after the payment date...all credit cards give you the initial grace period of no interest until the payment date.
for example, month 0: spend 5k, and pay 4.5k which means 500 is the 1st statement balance. next month: spend 5k, and pay 5k which means the 500 statement balance is paid and the remaining 500 is what's remaining for current balance because the first 500 of the 5k payment is applied to the statement balance. no interest is charged.
unless the OP is using the POT feature, the charge card's statement balance has to be paid in full each month.
I believe the confusion here is that the Platinum card is a charge card. You are required to pay the entire balance by the due date. If you have left $500 past the due date, then you have not paid the entire balance in full by the due date. I have been a member since 1997, and it has always been this way. But recently they began a new payment plan feature, and a new pay over time feature. I have never used these new features, and have opted out of them. Maybe these features are what is being used to carry over a $500 balance past the due date. I recommend you deactivate this feature. You can do so in the statements area while using the app. Simply put, the Amex charge cards are different than credit cards. It's best to think of the charge card as a debit card. Payment of the entire balance must be made in full by the due date.
Actually POT feature has been around and avalible on the Gold and Platinum cards since the late 1990's. It was juts structured a tad differently is all.
@bigseegar Appreciate the clarification. I've had Amex Green since 1997. Never had Gold or Platinum though. Clarification is appreciated.
@DSTforlife wrote:and that's my point. if the OP is not using the POT feature, then they are required to pay the balance in full.
i also think there's some confusion over when the PIF happens. you can PIF before the statement cuts so that the statement balance is zero, or you can PIF after the statement cuts but by the payment date. IMO the latter is how the charge card was designed..To PIF after the statement cuts and by the due date (I doubt Amex is penalizing for it). Granted I'm making assumptions, but I took the OP post to mean he is not using POT feature and would leave 400 as the statement balance. which by card design would be his minimum required payment.
i agree POT is not recommended even though it is offered. just use a normal credit card for that.
For a function that many are saying AMEX does not want us to use, and actually frowns upon its use, they sure have a funny way of showing it. I have heard of others being offered a $50 statement credit to turn it on, and I get at least 2 emails a week from Amex letting me know it is available to me...
back to and agree with @GatorGuy
OP, what is the point of "just leaving $400 so they can make a little interest". Flat out bad strat. It is us vs FI! You never WANT to give them money.
If you have to carry then carry (but not on this charge unless it us under POT). That's why you are getting the mild AA. Now your sig has to say PSL24k!
PSL25.6k even!
there are a lot of posts about Amex slapping a PSL on their charge card after they took advantage of the POT feature. Maybe the balances floated longer that what Amex expects, but notheless, adverse action was taken on plenty of people.
so, you may want to proceed with caution if you choose to take Amex up on their offer.
@DSTforlife wrote:there are a lot of posts about Amex slapping a PSL on their charge card after they took advantage of the POT feature. Maybe the balances floated longer that what Amex expects, but notheless, adverse action was taken on plenty of people.
so, you may want to proceed with caution if you choose to take Amex up on their offer.
I am one of those people. Paid in full all my Amex. One day I decided to shake it up and used POT to see if it would have any effects on my profile. Paid it off after a month or two. Then they gave me a hard limit after paying it off.
Something I want to touch on for all the people saying that OP's limit of 25k is fine, it really isn't. That's just part of the AA. The other parts are no new cards, no CLIs, and no referrals. In addition, there's almost no way to recon it. It could only last a year, it could last multiple years. There's no way to know.
@Brian_Earl_Spilner wrote:
In addition, there's almost no way to recon it. It could only last a year, it could last multiple years. There's no way to know.
Classic case of shooting yourself in the foot... leaving the balance to let them make some interest...