When paying off large purchases, choosing to spread out your payments can provide you financial flexibility even though paying off your card balance in full will prevent interest and debt.
Although it’s not required, paying off credit cards in full each month keeps interest from building up and debt from piling up.
However, carrying a balance with interest can be a useful strategy for funding significant purchases like auto repairs and home remodeling.
In order to provide cardholders with more payment flexibility, some contemporary credit cards are bridging the gap between conventional charge cards and standard credit cards.
Spending isn’t static. Our lives – and the economy – are constantly changing. Frustratingly, a necessary purchase may come along when money’s tight. And even when money isn’t tight, sometimes it’s better for your budget to pay off expenses over time.
Fortunately, credit cards don’t need to be paid off in full every month. You can carry a balance at the expense of interest charges. Unfortunately, that’s not the case for traditional charge cards.
However, certain American Express cards, such as the Platinum Card®, American Express® Gold Card, and American Express® Green Card, serve as a bridge between standard credit cards and charge cards. These Cards, like charge cards, have no preset spending limit. However, Card Members have the option to carry a balance with interest up to their Pay Over Time Limit because of the American Express Pay Over Time feature.
This article explains how keeping a balance in a responsible manner can give you the financial freedom to make significant purchases with assurance. We’ll also examine the differences between Pay Over Time and a standard revolving credit limit, as well as how Pay Over Time can be used to carry a balance on specific American Express cards.
Here’s how the Amex Gold card Pay Over Time feature works:
- Pay Over Time balances carried from month to month will accrue interest at a rate assigned by American Express when you’re approved for an Amex Gold card account.
- However, all charges not added to a Pay Over Time balance must be paid in full each month by the payment due date.
- Cardholders are automatically enrolled in the Amex Gold card Pay Over Time feature.
Important things to remember:
- Carrying a balance on your Amex Gold card will accrue interest, which can be expensive.
- It’s important to make at least the minimum payment each month to avoid late fees and damage to your credit score.
- You can avoid interest charges by paying your balance in full each month.
Here are some other things to consider when carrying a balance on your Amex Gold card:
- The interest rate: The interest rate on the Amex Gold card is currently 26.99% Variable APR. This is a high interest rate, so it’s important to pay off your balance as quickly as possible to avoid paying a lot of interest.
- The minimum payment: The minimum payment on the Amex Gold card is typically around 2% of your balance. However, if you carry a balance, you will need to pay more than the minimum payment each month to make any progress on paying off your debt.
- Your credit score: Carrying a balance on your Amex Gold card can hurt your credit score. This is because your credit utilization ratio, which is the amount of credit you are using compared to your total available credit, will increase. A high credit utilization ratio can make it more difficult to qualify for loans and other forms of credit in the future.
Overall, it’s important to weigh the pros and cons of carrying a balance on your Amex Gold card before you do so. If you can’t afford to pay off your balance in full each month, it’s best to avoid using the Pay Over Time feature.
Can You Carry a Balance on Any of the Amex Cards?
Yes, you can carry a balance on most of the Amex cards, including the Amex Gold card. However, there are a few exceptions, such as the Amex Green card and the Amex Platinum card. These cards are charge cards, which means that you must pay your balance in full each month.
If you’re considering carrying a balance on an Amex card, it’s important to be aware of the interest rates and fees that apply. The interest rates on Amex cards can be high, so it’s important to pay off your balance as quickly as possible to avoid paying a lot of interest
Here are some tips for carrying a balance on an Amex card:
- Make at least the minimum payment each month. This will help you avoid late fees and damage to your credit score.
- Pay more than the minimum payment each month. This will help you pay off your balance faster and reduce the amount of interest you pay.
- Consider transferring your balance to a card with a lower interest rate. This can save you money on interest charges.
- Be aware of the fees that apply. Amex cards may have fees for things like balance transfers and cash advances.
Overall, carrying a balance on an Amex card can be expensive However, if you can’t afford to pay off your balance in full each month, it’s important to be aware of the interest rates and fees that apply so that you can make informed decisions about how to manage your debt.
Additional Resources
How Does Pay Over Time Work?
Assume you always pay off your statement balance in full and that you primarily use your Gold Card for dining and grocery purchases, as well as the occasional flight. But you’re planning a DIY remodel of your bedroom and know it’s going to cost a pretty penny. One choice is to charge your Gold Card for the costs of the renovation, including the drywall, spackle, paint, furniture, and bedding.
This has a few benefits. For one, you’ll get to rack up some rewards. And, like a traditional charge card, you can enjoy a flexible spending limit. 2 Even better, when it comes time to pay your bill, you have the option of carrying a balance up to your Pay Over Time Limit and paying it off with interest over time, just like you would with a regular credit card. However, keep in mind that in order to use Pay Over Time, you must first activate the feature before making any charges that you plan to pay for over time. If the feature wasn’t active, you can’t retroactively add charges to your Pay Over Time balance.
The good news is that cardholders have the option to pay in full or carry a balance from the beginning because they are automatically enrolled in Pay Over Time. That being said, if you would rather keep your card a charge-only model and not use it to carry a balance with interest, you can always deactivate the Pay Over Time feature. Naturally, you can reactivate it at any time if you decide to use Pay Over Time’s additional payment flexibility later on. For example, maybe you want to pay it off gradually because you’re saving for an opulent honeymoon.
Pay Over Time Bridges the Gap Between Traditional Charge Cards and Credit Cards
The Platinum Card, the Amex Gold Card, and the Amex Green Card were originally presented as charge cards. But since Pay Over Time was introduced, these Cards can operate differently than traditional charge cards. In particular, members of the Platinum, Gold, and Green Card can use their cards just like regular credit cards, with no monthly minimum payment requirements and no set spending cap2. Alternatively, they can turn on the Pay Over Time feature, which gives them the option to carry a balance up to their Pay Over Time Limit (more on that later) with interest.
In either scenario, Card Benefits remain unchanged, and Card Members will continue to accrue rewards in their usual manner. However, you must pay off any amount that exceeds your Pay Over Time Limit in full by the date of your payment; interest is only assessed if and when you decide to carry a Pay Over Time balance. 3.
What Happens If You Carry A Balance On Amex Gold?
FAQ
What happens if I don’t pay Amex Gold in full?
Which Amex cards let you carry a balance?
Is Amex Gold unlimited credit?
Can you carry a balance on Amex everyday?
Can you carry a balance on AMEX cards?
Many members have reported carrying a balance on AMEX cards without issue. My recommendations would be to only carry during a promotional period (to avoid paying interest), make sure payments exceed the minumum amounts due, and be mindful of UTIL. 02-11-2015 12:29 PM Re: Can you carry a balance on any of the AMEX cards?
Is Amex gold a normal credit card?
Amex Gold is not a typical credit card, which means you must pay for most purchases in full by the due date. With a normal credit card, you have the option of paying only part of your balance by the due date and the rest over time. With Amex Gold, you can carry a balance only for certain eligible charges.
What is the AMEX gold card & how does it work?
The Amex Gold Card isn’t a traditional credit card. It’s designed with no preset spending limit, the amount you can spend adapts based on factors such as your purchase, payment, and credit history — but you’re expected to pay off your entire balance each month.
Does the American Express Gold Card have a credit limit?
The American Express® Gold Card does not have a specific credit limit. The Amex Gold Card has a feature called no preset spending limit ( NPSL ), which means your spending power with the card is determined on a month-to-month basis, depending on your previous spending habits, income, payment history, and other factors.