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American Express has a feature called Pay Over Time that allows for some extra flexibility when it comes to paying off card balances. And even better, Amex frequently sends out targeted offers of up to 20,000 bonus Membership Rewards when enrolling in Pay Over Time. That's a huge haul of points for almost zero work, and it's completely worth it if you get one of these offers.
However, there are a few things you need to know about Pay Over Time and why you should ultimately turn off this Amex feature.
Key Points
- New accounts for flagship cards like The Platinum Card® from American Express are now automatically enrolled in Pay Over Time.
- Pay Over Time provides the option to make cards that aren't typical “credit cards” start to function like a credit card. This allows you to carry a balance instead of needing to pay the full balance each month.
- Pay Over Time activation may make your card count towards Amex's five credit card per user limit.
- Targeted offers include up to 20,000 bonus Membership Rewards when you enroll in Pay Over Time. But there's no need to actually utilize this option to earn the bonus points.
- Make sure to turn off the feature, so you are eligible for future targeted offers.
- You may also want to unenroll so you don't accidentally carry a balance, thus paying interest charges.
Note: Eligible charges can be included in a Pay Over Time balance, up to the Pay Over Time Limit. All charges not added to a Pay Over Time balance or monthly payment plan or Cash Advance balance must be paid in full each month by the payment due date. Pay Over Time only applies to eligible charges meeting minimum transaction amounts for certain cards.
Related: American Express Card Offer History
Amex Pay Over Time Overview
American Express issues a large array of credit cards. But, the issuer also offers several variations of cards that don't have a preset spending limit. This type of card functions exactly like a credit card when making purchases. But, instead of having the ability to carry a balance as credit cards allow, you must pay off the balance each month or face stiff fees.
No Preset Spending Limit means the amount you can spend adapts based on factors such as your purchase, payment, and credit history.
Sometimes, life happens, and you may need more time to pay off your balance. American Express offers enrollment in Pay Over Time on these cards without preset spending limits. With this feature, cardmembers may have more time to pay down their balance for some (but not all) charges. However, you will be charged interest when using Pay Over Time to carry a balance. Amex will determine — and possibly change — what your Pay Over Time limit is. For example, mine is $30,000 on my The Business Platinum Card® from American Express.
Cards eligible for Pay Over Time include:
- American Express® Green Card
- American Express® Gold Card
- The Platinum Card® from American Express
- Business Green Rewards Card from American Express
- American Express® Business Gold Card
- The Business Platinum Card® from American Express
Related: All the Cards That Earn American Express Membership Rewards Points
Why You Should Turn off Amex Pay Over Time
Reason 1: Accidental interest
The first rule of points and miles is to never carry a balance on a credit card so you won't pay interest. The whole purpose of Pay Over Time is for cardholders to carry a balance and thus pay interest. With Pay Over Time, the interest charges are quite substantial. Amex will happily profit off of you carrying a balance on your card each month. However, this will negate the value of the rewards you're earning.
Turning off Pay Over Time with Amex will ensure you don't accidentally get hit with an interest charge from carrying a balance. If you are meticulously organized, then maybe you don't have to worry as much. But for peace of mind, turning off Pay Over Time is the safest way to avoid accidentally carrying a balance.
Reason 2: The 5 credit card limit
At any given time, Amex allows individuals to hold five traditional credit cards and 10 cards with no preset spending limit (also called charge cards). In the past, there have been rumors claiming that enrollment in Pay Over Time will cause Amex to count the latter type — such as the Amex Green Card — as a credit card. This may or may not affect you, but it's something to be aware of since Amex only allows members to carry five credit cards at a time. This could make you ineligible for new credit cards and their welcome offers.
If you ever find yourself ineligible for a new American Express credit card, check that you have deactivated Pay Over Time on your existing cards.
Reason 3: To get targeted offers
If you don't intend to use the Pay Over Time feature, the best reason to turn it on is when receiving a targeted offer that gives you bonus Membership Rewards for doing so. If your new cards have the feature already enabled, you won't get these offers, so make sure to turn off Pay Over Time once approved for your new card (or if you haven't already on an existing card).
Related: Understanding Rewards Credit Card Application Rules and Restrictions
How To Turn Off Amex Pay Over Time
Fortunately, it's very simple to unenroll from Pay Over Time with Amex. Calling in is one option. You can also chat with customer service. But you can also do this yourself online.
To turn off Pay Over Time (or to enroll or check if you're enrolled), log into your Amex account. Click on “Account Services” in the top menu.
In the menu below, click on “Payment and Credit Options.” On the next menu that opens, click on “Manage Pay Over Time.”
Changing your settings to “off” is effective the same day if done before 8 p.m. Eastern Time or the following day if changed after that time.
Final Thoughts
There are targeted offers to earn Membership Rewards for doing nothing more than enrolling in Pay Over Time. They are incredibly lucrative and 100% worth doing.
If you are targeted for a 20,000 Membership Rewards Pay Over Time offer, the bonus points can be worth hundreds of dollars, depending on how you use them. Just make sure you unenroll afterward, so you don't accidentally end up carrying a balance.
If you aren't sure whether Pay Over Time is for you, a bonus offer is a great opportunity to try it out. The points you earn can be quite valuable, and you get a chance to check out the feature. Then, if/when you aren't using it any longer, you know how to turn it off.
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