American Express New Purchase Interest Rates
Author: cyberlayde
Posted: Wed Mar 22, 2006 3:50 pm
Post subject: Can AMEX do this?
I have an AMEX card which I've held for a number of years. A few months ago they sent me an offer since I didn't have a balance on there for a 3.99% APR for the life of any balance transfer I made up to my credit limit. I transferred $10K over for this offer. Now comes the problem. In the meantime, I've made some purchases which I've paid off immediately. For example, If I've spent $300 on a new purchase I'd pay it off before the actual bill came due. Also when the bill came due, I'd pay the minimum plus the finance charge so that wouldn't carry over into the 17% new purchase area. In my last statment I noticed that I now have over $2K in New Purchases being charged at a 17% rate and all my payments have been applied to the 3.99% balance. They also are listing the finance charges as a New Purchase and dumping that into the 17% area, even though I'm paying extra with each payment to cover that. So, now the 3.99 balance is quickly dropping but the 17% New Purchase balance is going up each month! Is this legal?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: TomfromCT
Posted: Wed Mar 22, 2006 3:54 pm
Post subject: Re: Can AMEX do this?
Oh lady
Happens all the time. Its perfectly legal because they told thats what they were going to do.
All payments go to the lowest APR balance
They LOVE it when you charge money at the regular rate because that buries that high APR under the low one from the BT.
Then they end up with a nice average apr that is higher and they make more money off of you.
Read your account info. and do a BT the next time you can.
**Now they can't take you for a ride again because you KNOW the game.
Thanks to WWW.CARDRATINGS.COM
_________________
Average FICO score: 705
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: rapjunkie
Posted: Wed Mar 22, 2006 5:06 pm
Post subject:
Good response... all the cards do that... so if you ever do a BT for a low rate, be sure to transfer it to an empty card and don't use the card at all after the transfer.
Author: Polonius
Posted: Wed Mar 22, 2006 6:56 pm
Post subject: American Express New Purchase Interest Rates
It's MORE than just legal--it's the REASON they're offering the low rate on BTs only, so you pay the higher rate on the purchases.
It's ALWAYS disclosed that way in the offer, by the way. Check your original offer and see for yourself. Read those offers carefully!
One way to get out of this hole is to see if the BT offer is still in effect for new transfers. If so, just pay in full so you have a credit balance and redo the balance transfer...and don't use that card for purchases.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Mar 22, 2006 3:50 pm
Post subject: Can AMEX do this?
I have an AMEX card which I've held for a number of years. A few months ago they sent me an offer since I didn't have a balance on there for a 3.99% APR for the life of any balance transfer I made up to my credit limit. I transferred $10K over for this offer. Now comes the problem. In the meantime, I've made some purchases which I've paid off immediately. For example, If I've spent $300 on a new purchase I'd pay it off before the actual bill came due. Also when the bill came due, I'd pay the minimum plus the finance charge so that wouldn't carry over into the 17% new purchase area. In my last statment I noticed that I now have over $2K in New Purchases being charged at a 17% rate and all my payments have been applied to the 3.99% balance. They also are listing the finance charges as a New Purchase and dumping that into the 17% area, even though I'm paying extra with each payment to cover that. So, now the 3.99 balance is quickly dropping but the 17% New Purchase balance is going up each month! Is this legal?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: TomfromCT
Posted: Wed Mar 22, 2006 3:54 pm
Post subject: Re: Can AMEX do this?
Oh lady
Happens all the time. Its perfectly legal because they told thats what they were going to do.
All payments go to the lowest APR balance
They LOVE it when you charge money at the regular rate because that buries that high APR under the low one from the BT.
Then they end up with a nice average apr that is higher and they make more money off of you.
Read your account info. and do a BT the next time you can.
**Now they can't take you for a ride again because you KNOW the game.
Thanks to WWW.CARDRATINGS.COM
_________________
Average FICO score: 705
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: rapjunkie
Posted: Wed Mar 22, 2006 5:06 pm
Post subject:
Good response... all the cards do that... so if you ever do a BT for a low rate, be sure to transfer it to an empty card and don't use the card at all after the transfer.
Author: Polonius
Posted: Wed Mar 22, 2006 6:56 pm
Post subject: American Express New Purchase Interest Rates
It's MORE than just legal--it's the REASON they're offering the low rate on BTs only, so you pay the higher rate on the purchases.
It's ALWAYS disclosed that way in the offer, by the way. Check your original offer and see for yourself. Read those offers carefully!
One way to get out of this hole is to see if the BT offer is still in effect for new transfers. If so, just pay in full so you have a credit balance and redo the balance transfer...and don't use that card for purchases.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 7:06 PM
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