Charge card question

[Anonymous]

There's been a lot of discussoin of Pay-Over-Time here, but no posts that I can recall of someone actually usinig it.

Most people who qualify for POT also qualify for an Amex credit card with 18 months zero-percent financing.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

Thank you all. Anyone every carry a balance a on there charge cards. Just curious. I've been reading a lot lately. Just want to hear everyone's experiences.

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OP do you have a charge card? 

Be aware that the APR on charge cards, for the amounts that are Pay Over Time, are very high. So in no sense is it a free carry of a balance.  

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Yes, I do have a charge card. I do understand the APR. I was just wondering if anyone has had any experience with carrying a balance on a charge card and what happened to their account with prolonged balance being carried.

[FinStar]

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@Anonymous wrote:

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@NRB525 wrote:

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@Anonymous wrote:

Thank you all. Anyone every carry a balance a on there charge cards. Just curious. I've been reading a lot lately. Just want to hear everyone's experiences.

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OP do you have a charge card? 

Be aware that the APR on charge cards, for the amounts that are Pay Over Time, are very high. So in no sense is it a free carry of a balance.  

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Yes, I do have a charge card. I do understand the APR. I was just wondering if anyone has had any experience with carrying a balance on a charge card and what happened to their account with prolonged balance being carried.

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You could always test the waters for the sake of science or DPs and report back.

[Anonymous]

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@I_Love_Cards wrote:
Are you asking about an AMEX card? I would assume so since I don’t know any other lenders with charge cards.

An Amex charge card has to be paid in full every month unless it has a POT (Pay over time) option.

I have 3 charge cards with Amex. My platinum does not have POT, my gold has POT that I can select any charges over $100 to be put into a POT arrangement, and my green card has automatic POT for every single charge I make.

I have never actually used any POT anything so I have no experience carrying a balance on my charge cards, but Amex has been aggressively pushing it on my green card (I do not have the option to choose charges to put into the POT or not-everything goes by default. My Gold card will be having this same auto-POT setup starting in April).

There is a thread somewhere in the forum Titled something like “tell me about your POT experience” that might give you more info about using this feature and/or how it may affect your ability to make new charges especially if your POT balance is near or above your internal spend limit.

If you’re not talking about an AMEX card, or your card doesn’t have a POT option, then you need to pay the entire statement balance in full every month.

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I've never used POT, and have no intention to ever, even for medical purposes. But I've looked at the details of it,  and they could be very good deals. I did a hypothetical carry over 3 months on $600 on the Amex website. No interest,  set fee amt, converted the total fees over the 3 months to an approximate APR. Comes to somewhere near 2.2% for me. Maybe the reason why the fees are so low for me is, they don't expect me to ever use it lol.

[Anonymous]

I don't know  I'm too scared to try it. I wouldn't want my account to get shut down.

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@FinStar wrote:

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@Anonymous wrote:

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@NRB525 wrote:

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@Anonymous wrote:

Thank you all. Anyone every carry a balance a on there charge cards. Just curious. I've been reading a lot lately. Just want to hear everyone's experiences.

---

OP do you have a charge card? 

Be aware that the APR on charge cards, for the amounts that are Pay Over Time, are very high. So in no sense is it a free carry of a balance.  

---

Yes, I do have a charge card. I do understand the APR. I was just wondering if anyone has had any experience with carrying a balance on a charge card and what happened to their account with prolonged balance being carried.

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You could always test the waters for the sake of science or DPs and report back.

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I don't know  I wouldn't want my account to be shut down.

[NRB525]

Your account would not be shut down just for using an offered PoT.  

[Anonymous]

I think i'm confused. I thought finstar meant carrying a balance like I was referring to.

[NRB525]

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@Anonymous wrote:

I think i'm confused. I thought finstar meant carrying a balance like I was referring to.

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Yes, although there is a bit of sarcasm in there. The data points would relate to how much interest you were charged, how many months you carried the balance in the PoT plan.

The fear of them just shutting your account down because you used Pay Over Time, is not reasonable.

AMEX will shut down your card for not paying them on time, for causing a large charge off of money a person owes them. A person paying AMEX back, over the specifics of the terms that have been agreed to, including carrying a balance at interest over time, they won't close the account for that.

They may give the cardholder a call to ask them to pay more significant payments toward the open balance, but that is just a step ( warning ) on the path to escalation if there are payments problems from the cardholder.

[Anonymous]

What if someone went outside the pot limit.

[FinStar]

It would be doubtful they would let you exceed the established POT limit depending on your AmEx internal profile. If under certain considerations that they would do so, you'd likely be required to pay any excess over POT + the required amount of any monthly payment.