To say AMEX frowns on using POT extensively is 100% inaccurate.

[Anonymous]

I hear people saying AMEX gets jumpy or frowns if you use POT more then 2 or 3 months, that is pure speculation. I paid a 4 firgure balance over 6 months, not a whisper from AMEX and why would they? I have an 18/49%APR a hard due date and a $35 min payment like a regular credit card. If you are offered those terms, what in the heck am I to beleive from the inuendo on the forum? That there will be some kind of AA action taken on me for using POT? I catagorically dispute the notion that AMEX gives a hoot and we shouldn't scare people with speculation.

AAOA 3 years no lates or missed ever. AMEX PLAT NPSL $35K POT AMEX PRG $35K POT CSP $28K BOA $27K DISC $21500 CITI SIMP $9200 JET BLUE PLUS WEMC $10K AMEX ED PREF $18K MACYS $8800 BEST BUY $10K

[creditguy]

I certainly don't think Amex frowns upon it's use or else they wouldn't offer it. Everything here is YMMV and every story provides a data point. I think Amex only frowns upon people who pay minimum payments on large balances and carry long term balances because it may indicate potential or current financial trouble. For people with established histroy and make decent sized payments that don't carry a long term balance Amex doesn't sweat, its an additional source of revenue for them, so what's not to like about that. Remeber to take some things with a grain of salt and YMMV. 

[Anonymous]

I remember hearing speculation before that CC companies such as AMEX "monitor" spend habits to use in their internal algorithms when calculating risk etc. Apparently starting off with a transaction at Starbucks was good as it is a small purchase at a "respectable" establishment and shopping at WalMart was frowned upon. 

Outside of a first purchase being for gas or at an electronic store which I do believe indicates possible fraud behavior, it always seemed like a tin foil hat theory. However when I read your post I totally thought you meant marijuana. As in if you frequent a cannabis store AMEX frowns.

Anyway, long story short, you made me smile. Thank you.

[austinguy907]

AMEX doesn't frown on something they offer to people.  If they did frown on it they wouldn't offer it.  Using it is another matter though when it comes to paying 1.5% per month in interest on what could be a hefty balance.  Knowing you have to opt-in to POT is one thing and the other is hitting the threshold of a charge to put it into that bucket if you want to use the feature.  POT would be a gateway to getting away from only Charge accounts that they built the business on initially to a hybrid option for card holders to test out the "need" for the feature before rolling out a Revolver side.  Of course there's the POT ROI in the form of $$$$ from interest charges

There's plenty of myths around here from over the years and lack of experience and plain just guessing.  If you use things correctly there usually isn't any issues.

[Anonymous]

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@Anonymous wrote:

shopping at WalMart was frowned upon.

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I've heard of the some of the crazy rumors of their algorithms calculating risk concerning shopping demographics of low vs higher income areas which makes sense, but considering Walmart is one of few stores in it's category, I'd be inclined to believe this particular rumor to be rubbish. Everyone shops there. Kmart on the other hand would make a lot more sense.

[austinguy907]

Urban Legends!!!!

If you don't swipe it they don't make money!  That would be silly to AA an account because they actually use it.  As long as your payment history is consistent you have nothing to worry about.  

[kdm31091]

My theory is that if you have a charge card, you are anticipating paying in full every single month. Amex is anticipating the same thing. They offer "pay over time" for emergency situations where you cannot PIF, but by nature of the fact that this product isn't intended for that, of course it may raise eyebrows. Any creditor gets nervous if they have reason to suspect you're in financial distress. So, if one is routinely going to revolve a balance, there are better products out there for the job.

Having said that, the AA paranoia can get out of hand, not just with Amex but with any creditor. You have to take everything with a grain of salt. We are rarely told the entire story of the person's AA, and are never aware of their entire profile and history. So while stories can provide data, you don't want to take it to heart too quickly and get paranoid.

[redpat]

OP, I'm surpised you even had to use POT.  Did you check to see if you could get 0% offers on your EDP?  I get those offers all the time.

Now a days with good scores it seems easy to get 0% offers or like citi 1.99% offers.

I have never worried about using POT.   I just don't like the cost associated with it.

[AverageJoesCredit]

Or the smell , redpat, or the smell

[redpat]

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@AverageJoesCredit wrote:
Or the smell , redpat, or the smell

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LOL!!!!!!!  The brownies aren't bad and no smell.......