For those with Am Ex cards....

[Homeslice]

So the radio ads for American Express always say "It helps me get back on the right track and stop getting into trouble, because it forces me to pay my bill in full each month...."

Seriously?

Why not just use a regular credit card, and simply not charge more than you can pay off?

This was a clever move by AmEx........Advertise to the type of people who have problems with self-discipline......The type of people who are more likely to get dinged with penalties (which, knowing AmEx, are probably big). Win for AmEx, lose for the consumer.

And how much is AmEx's annual fee anyway, like $100-150? No thanks......I've never paid an annual fee for a card.

[fasternyou929]

I just use their Blue card and rake in the cash back. They DO have good benefits for their card holders and their customer service is by far the best available.

But I get enough benefits from the Blue card that I haven't been pursuaded switch from getting paid to use their card to paying an annual fee.

[goof2]

Regular Amex cards have some other benefits that people may or may not like. Their "rewards" programs are typically better than most. They include roadside assistance for what that is worth. For most electronics purchases made with their cards Amex gives you a 1 year extended warranty at no additional cost. For people who travel a lot on business or buy a lot of electronics the benefits can easily add up to more than the fee.

[tommymac]

I never realy understood the purpose of an AMEX card since it has to be paid at the end of the month and has an annual fee. I know some peopel use it for business and expense accounts but otherwise i never saw the use for one.

Tom

[Homeslice]

Originally Posted by goof2

Regular Amex cards have some other benefits that people may or may not like. Their "rewards" programs are typically better than most. They include roadside assistance for what that is worth. For most electronics purchases made with their cards Amex gives you a 1 year extended warranty at no additional cost. For people who travel a lot on business or buy a lot of electronics the benefits can easily add up to more than the fee.

I don't know what kind of cash back AmEx has, but my Visa/Mastercards give 1-2%. And I haven't bothered checking recently but I remember a few years ago they came with warranty or lost item coverage as well.

Only time I've had an AmEx was for a corporate card, and I wasn't allowed to keep any of the benefits/points anyway.

[fasternyou929]

Originally Posted by Homeslice

I don't know what kind of cash back AmEx has, but my Visa/Mastercards give 1-2%. And I haven't bothered checking recently but I remember a few years ago they came with warranty or lost item coverage as well.

Only time I've had an AmEx was for a corporate card, and I wasn't allowed to keep any of the benefits/points anyway.

AmEx cash back is tiered. For the first $6500 you spend in a year, it's 1.5% back at gas stations, grocery and drug store; 0.5% on everything else.

Beyond $6500 it's 5% at gas stations, grocery and drug stores; 1.5% on everything else. Last year I got over $1000 back, can't complain much about that!

The warranty thing is pretty standard, but the process is much simpler with AmEx vs. Citibank Mastercard. And, in my experience with the two, AmEx is much more "in your corner". That alone makes me keep using them.

[Rider]

I have a Am Ex card(Costo Executive card). The annual fee is $100 but I usually end up getting just over $100 back at the end of the year so the card is free really. You can carry a balance on it but I don't because the interest rate is something like 17% or even higher.

[Homeslice]

Originally Posted by fasternyou929

AmEx cash back is tiered. For the first $6500 you spend in a year, it's 1.5% back at gas stations, grocery and drug store; 0.5% on everything else.

Beyond $6500 it's 5% at gas stations, grocery and drug stores; 1.5% on everything else. Last year I got over $1000 back, can't complain much about that!

Do you mind if I asked what types of expenditures these were? Using the highest cash back % you listed, you would have had to spend over $24,500 at gas stations, grocery or drug stores..............or a lot more than that if it was anywhere else.

[unknownroad]

Originally Posted by fasternyou929

I just use their Blue card and rake in the cash back. They DO have good benefits for their card holders and their customer service is by far the best available.

Amex Blue FTW. And it has no annual fee.

[shmike]

Originally Posted by Homeslice

So the ads for American Express always say "It helps me be disciplined because I have to pay my bill in full each month...."

Seriously?

Why does that make you disciplined? Why not just use a regular credit card, and spend within your means?

This was a clever move by AmEx........Advertise to the type of people who have problems with self-discipline......The type of people who are more likely to get dinged with penalties (which, knowing AmEx, are probably big). Win for AmEx, lose for the consumer.

And how much is AmEx's annual fee anyway, like $100-150? No thanks......I've never paid an annual fee for a card.

I've never seen the ads in question and AmEx has a pay over time option if you over-extend yourself, so there goes the discipline theory.

AmEx users typically don't have discipline problems, which is why they use AmEx. AmEx users are typically more affluent than you average Visa/MC user.

Once upon a time, all CC's were CHARGE cards which meant that you charged money to your account and paid it off when the bill came in.

AmEx, didn't invent the pay-in-full schtick, they stuck to it when the others figured out that more money was to be made in interest from suckers that have no self-discipline.