American Express has a line of cards originally rolled out as charge cards, different from traditional credit cards. The cards include the American Express Platinum Card, Amex Gold Card, and Amex Green Card. A charge card differs from a traditional credit card when paying back the card balance to the credit card issuer.
Charge cards will require cardholders to pay their entire balance in full without paying interest. On the other hand, credit cards require cardholders to pay a minimum monthly credit balance at an interest.
However, the charge cards offered by American Express have a hybrid feature, allowing them to work as traditional credit cards. For instance, the American Express Platinum Card has two payment plans allowing cardholders to stretch their balance. Therefore, cardholders can pay their balance at an interest or monthly fee on eligible purchases, depending on the payment plan.
The Pay Over Time and Plan It features offer cardholders the chance to save money and minimize their card balance to pay monthly. Several conditions and requirements will apply to the cardholder when using either of the payment plans.
Key Takeaways
· The Platinum Card from American Express was originally rolled out as a charge card, among other cards in the same line
· American Express has offered Platinum cardholders the Pay Over Time feature, allowing cardholders to pay their card balance over time
· There are several terms applying to cardholders for using the Pay Over Time feature, allowing the Platinum Card to work as a hybrid
How Does Pay Over Time Work?
The Pay Over Time feature is an American Express service offered exclusively to American Express charge cards. Usually, charge cards do not allow cardholders to carry over their card balance, and cardholders must pay their balance in full monthly. However, cardholders will only pay interest if the balance is carried over to the next month.
Pay Over Time allows cardholders to pay their card balance for eligible purchases only over a stretched period but at an interest. Other purchases must be paid in full since the feature is unavailable for cash advances, certain insurance premiums, and other cash equivalents.
It is important to know that there is a Pay Over Time limit to the money paid back over time. Charge cards lack a preset credit limit, but American Express will set a preset spending limit on different categories, depending on the spending power. The lack of a credit limit will not affect the cardholder’s use of the Pay Over Time feature, although the feature itself has a limit.
Once you hit the limit, you must pay back the remaining amount in full since the payment plan will not cover excesses. The Amex Platinum Card offers the cardholder the Pay Over Time plan for purchases made above $100 in the Pay Over Time balance.
Pay Over Time offers flexibility to cardholders since they are automatically enrolled in the program as they use their card. However, you can opt out of the feature through your online account or by contacting the number on the back of your card. Your first time enrolling in the Pay Over Time feature can earn you between 10,000 to 20,000 Membership Rewards points through targeted offers.
Thus, you do not have to use the feature to earn points since enrolling in the feature will earn you points. If you wish to deactivate the feature, you can do so in your account and remove each card account separately.
How Much Does Pay Over Time Cost?
The Pay Over Time feature usually charges interest to cardholders so that they can pay their card balance over time. The annual percentage rate American Express charges during the billing period are usually between 15.99% to 22.99%, set during card membership. The APR varies depending on the cardholder’s creditworthiness since several factors, like the cardholder’s credit report, are at play.
The cardholder will not pay interest only when they pay the full Pay Over Time balance before the due date. The extra charges must also be paid in full before the due date to avoid a late fee.
Do You Have to Pay the Amex Platinum Bill in Full Every Month?
The Amex Platinum Card is among the Amex charge cards where cardholders pay their card balances in full monthly. All Amex charge cards require cardholders to pay the total amount of their balance in full every month. However, the Pay Over Time feature is an extended payment option allowing cardholders to pay their balance over time.
Although cardholders are automatically enrolled in the feature, cardholders can confirm through their online account. You must ensure that you activate Pay Over Time to use the feature and avoid late payments, which have serious repercussions.
With the Pay Over Time feature, you can check your plan payments, minimum payment, and charged interest from your online account. You do not have to use the Pay Over Time feature if you are sure you will pay back your entire balance immediately. The Pay Over Time feature is best for those who can pay some of their card balance for eligible purchases.
However, extra charges incurred by the cardholder and any amount above your Pay Over Time limit must be paid back in full. Thus, you will pay part of your balance alongside the interest charges and fees owed that apply when using the Pay Over Time plan.
What Happens if I Do Not Pay My Amex Platinum Bill?
The American Express Platinum Card is a high-ranking luxurious card available to those with a good credit score. Thus, American Express is very selective and will always scrutinize new card applicants who wish to be approved. Although Amex cards have no credit limit, cardholders may only make a large purchase up to their spending power.
However, cardholders must use the card responsibly to avoid very high card balances they cannot afford to pay. Therefore, American Express will require cardholders who make their payments on time, on or before the due date.
If a cardholder makes a late payment, they will attract a penalty of 29.99% APR interest rate which stays until they make on-time payments for six months. Additionally, cardholders will be reported to the major credit bureaus for a 30-day or more delay, affecting their credit history. Credit reporting agencies or credit bureaus are responsible for creating credit reports, which include credit scores.
Therefore, if your credit card issuer reports you to a credit bureau, your general creditworthiness is negatively affected. Cardholders who fail to keep up with their payments several times will face the risk of their account suspension by American Express.
Late payments will also attract a late fee of up to $40, even if the cardholder makes one late payment. Additionally, American Express may increase the annual percentage rate for cardholders who record late or missed payments under the Pay Over Time plan. Therefore, cardholders must pay at least the minimum payment on their monthly balance to avoid issues with their credit scores.
Ensure you note extra eligible charges, such as your cash advance balance that may apply to your card as you make your payments. Always take note of your transaction date to know when your billing period is due so that you can pay your Pay Over Time balances on time.
The Pros and Cons of Amex Platinum Pay Over Time
Pros of the Amex Pay Over Time Feature
The Amex Platinum Card is a rewards card, even though it majorly works as a charge card, giving cardholders a chance to earn rewards. The Pay Over Time feature will not affect the cardholder’s rate of earning rewards and benefits the card offers. Additionally, cardholders will receive up to 20,000 Membership Rewards points while enrolling in the Pay Over Time feature.
The credit limit or spending limit offered by the card will remain intact, which will not affect the cardholder’s credit utilization rate. Thus, the Pay Over Time limit will not be reported to the credit bureaus whether or not you use it to pay your plan balances.
The Pay Over Time plan offers the best flexible options for cardholders to plan for and pay their monthly balance. Thus, cardholders will receive better payment options by enrolling in the payment plan for better money management. The feature will also cover authorized users added to the main eligible card account.
Cardholders will have no extra charges if they keep up with their Pay Over Time balance. However, cardholders must note the interest charges and other purchases not covered by the Pay Over Time feature.
Cons of the Amex Pay Over Time Feature
Some cons associated with the Pay Over Time feature include a potentially high APR, leading to high interest. Although the APR ranges between 15.99% to 22.99%, it may be generally higher than rates found in competing cards. However, cardholders can improve their credit scores or reports to increase their chance of low APR.
Also, flexibility in the payment plan of the cardholder’s monthly balance does not guarantee a positive financial situation. Cardholders who fall into debt easily may avoid this feature to prevent racking up excess interest.
Is it Worth Not Paying the Amex Platinum Bill in Full?
The choice to use the Pay Over Time feature is entirely up to the cardholder, depending on their spending and payment habits. The American Express Platinum Card is originally a charge card with no preset credit limit, which may be tempting to misuse. However, cardholders must use the card responsibly, especially when making large purchases, since they must repay the full balance.
The Pay Over Time feature is quite helpful when paying back the money spent on eligible purchases, an advantage to many. Thus, cardholders must keep track of their Pay Over Time balance and follow up on the payments made to avoid penalties.
The Pay Over Time feature charges interest on the amount paid back every month, varying from one cardholder to another. If you can pay back the full amount on your credit card balance, you can opt out of the feature through your online account. If you are not careful, the Pay Over Time plan will only offer a temporary extended payment option, which may lead to debt.
However, the payment plan is very helpful to those who can properly manage their account and keep up with their payments. Ultimately, your spending habits and payment history will determine whether Pay Over Time works for you.
Conclusion
American Express has a line of charge cards, including the Amex Platinum Card, with hybrid features that work like a traditional credit card. One of these features includes the Pay Over Time payment plan allowing cardholders to pay their balance over time at interest. Usually, cardholders of charge cards must pay their entire balance in full monthly.
However, the Pay Over Time option gives cardholders more flexibility on their payment options without interfering with earning rewards. It is important to keep track of the Pay Over Time balance and ensure you make all payments on time to avoid penalty charges.
FAQs
Do you have to pay Amex Platinum annual fee in full?
The Amex Platinum Card annual fee is outside the purchases covered under the Pay Over Time feature. Therefore, the cardholder must pay their annual fee fully during the billing period to avoid penalties. The annual fee is always paid once a year during the anniversary of your Amex Platinum Card membership.
Therefore, cardholders cannot pay the annual fee monthly, as seen in some competing credit cards.
Which American Express cards offer Pay Over Time?
Pay Over Time is a hybrid feature available to only Amex charge cards, allowing them to work as traditional credit cards. The feature allows cardholders to make their card balance payments over a longer period than paying the whole amount monthly. The Amex charge cards available in the market include the Platinum Card from American Express, Amex Gold Card, and Amex Green Card.
Cardholders are automatically enrolled in the feature, but they can opt out of their online account if they wish to do so.
Does Amex Platinum have a minimum payment?
A minimum payment on the Ames Platinum Card only applies when the cardholder activates the Pay Over Time plan. Once you use the Pay Over Time feature, you can make a minimum payment as you clear your card balance over a longer period. You must be careful when using the feature by ensuring it is active to avoid late or missed payments and penalties.
However, you can make the full balance payment without carrying the balance over, which prevents you from carrying an interest.
