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Pay Over Time on Charge cards

jyim89
New Contributor

Pay Over Time on Charge cards

So I applied and got approved for the Amex Platinum charge card the other day and I was setting up my account when I noticed the Pay Over Time option. I thought why not and went ahead and enrolled and got the standard 35K POT. My questions are:

1. The POT limit does not factor into your credit utilization since the card is still technically a charge card right?

2. And if not would you still consider the POT limit as part of your Total Credit Limit?

NPSL
$35K POT
$40K$17K$9.5K$8.5K

Goal: Back to 800+ across the board and 100+ TCL
Message 1 of 12
11 REPLIES 11
Scuderia
Frequent Contributor

Re: Pay Over Time on Charge cards

Your POT balance does not count against your utilization so it's handy if you need to carry a balance from a scoring standpoint. A lot of people don't count it as part of their overall limits even though it's essentially a revolving credit line, and at a better rate than some of my other cards. A rep even told me it was considered a revolving line internally, the only difference being that your single purchase limit can vary depending on usage, etc etc.  

Message 2 of 12
UncleB
Moderator

Re: Pay Over Time on Charge cards


@Scuderia wrote:

Your POT balance does not count against your utilization so it's handy if you need to carry a balance from a scoring standpoint. A lot of people don't count it as part of their overall limits even though it's essentially a revolving credit line, and at a better rate than some of my other cards. A rep even told me it was considered a revolving line internally, the only difference being that your single purchase limit can vary depending on usage, etc etc.  


+1

 

Having a $35k POT doesn't necessarily mean they would let you charge up that much.  I have a $35k POT on my PRG, but I'm fairly certain they would cut me off to new charges well before I ever got close.  Smiley Wink

Message 3 of 12
jyim89
New Contributor

Re: Pay Over Time on Charge cards


@Scuderia wrote:

Your POT balance does not count against your utilization so it's handy if you need to carry a balance from a scoring standpoint. A lot of people don't count it as part of their overall limits even though it's essentially a revolving credit line, and at a better rate than some of my other cards. A rep even told me it was considered a revolving line internally, the only difference being that your single purchase limit can vary depending on usage, etc etc.  


Thanks so much for the short but comprehensive answer!

NPSL
$35K POT
$40K$17K$9.5K$8.5K

Goal: Back to 800+ across the board and 100+ TCL
Message 4 of 12
Janus
Senior Contributor

Re: Pay Over Time on Charge cards

What's a typical POT interest rate? I have a large expense coming up, and might utilize this for a couple months to spread out the payments.

Might be easier than charging to Amex, then immediately BT to Discover.






Message 5 of 12
K-in-Boston
Moderator

Re: Pay Over Time on Charge cards


@Janus wrote:

What's a typical POT interest rate? I have a large expense coming up, and might utilize this for a couple months to spread out the payments.

Might be easier than charging to Amex, then immediately BT to Discover.


It varies by person.  If it's very short-term, I agree that paying the interest for a few months can be better financially than paying a 3% transfer fee.  (Although Discover does offer 0% fee transfers with 4.99% APR typically, so that throws out that logic.)  Amex does offer targeted promotional APRs on POT in the single-digits from time to time.

 

https://global.americanexpress.com/lending/pay-over-time

That link should bring you to this screen which lisyts your APR (painful to see how that's gone up with prime rate changes):

Screen Shot 2018-08-25 at 9.20.14 PM.png

Message 6 of 12
CreditCuriosity
Moderator

Re: Pay Over Time on Charge cards


@K-in-Boston wrote:

@Janus wrote:

What's a typical POT interest rate? I have a large expense coming up, and might utilize this for a couple months to spread out the payments.

Might be easier than charging to Amex, then immediately BT to Discover.


It varies by person.  If it's very short-term, I agree that paying the interest for a few months can be better financially than paying a 3% transfer fee.  (Although Discover does offer 0% fee transfers with 4.99% APR typically, so that throws out that logic.)  Amex does offer targeted promotional APRs on POT in the single-digits from time to time.

 

https://global.americanexpress.com/lending/pay-over-time

That link should bring you to this screen which lisyts your APR (painful to see how that's gone up with prime rate changes):

Screen Shot 2018-08-25 at 9.20.14 PM.png


Didn't know it varied by person on charge cards?  I thought it was 19.99 or whatever since prime has raised for all... I know plan it changed for different people on revovlers, but not POT rates.. You have a pretty good rate there it appears as mine is 19.99 and I usually get pretty killer apr's on Amex cards being the lowest usually and below their published lowest by asking on my ED card..Always nice having the option in case one goes a bit overboard on a charge card lol

Message 7 of 12
K-in-Boston
Moderator

Re: Pay Over Time on Charge cards

Mine were 15.24% until the prime rate started going up in December 2015.  Smiley Sad

Yes, they have a range and most people around here have reported rates significantly higher than mine, so FWIW I feel special.  My APRs are all over the board with other lenders (high credit lines with high APRs and lower credit lines with lowest APRs run amok in my profile), but Amex has always treated me well (even if they did drag their feet moving my SPG limit up).

Message 8 of 12
Doigt_dor
Frequent Contributor

Re: Pay Over Time on Charge cards

 

I've been offered the option to enroll in POT on my Amex PRG but I'm holding out and waiting to see if they'd include some MR points with the offer to sweeten the deal. Do you know if Amex still offers MR points to enroll in the POT option?








Les murs ont des oreilles .
Message 9 of 12
CreditCuriosity
Moderator

Re: Pay Over Time on Charge cards


@Doigt_dor wrote:

 

I've been offered the option to enroll in POT on my Amex PRG but I'm holding out and waiting to see if they'd include some MR points with the offer to sweeten the deal. Do you know if Amex still offers MR points to enroll in the POT option?


Yes targeted though

Message 10 of 12
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