Consequences of Late Payment on American Express Cards
If you don’t pay your American Express charge card bill, you’ll rack up late fees and interest charges. American Express charge cards require you to pay your bill in full every month. American Express states paying late may hurt your credit score. With American Express cards, no preset spending limit means no predefined monthly credit limit, but it does not mean unlimited spending.
If you don’t pay the balance requested by its due date, your account can be charged interest and penalty fees, and cancelled. Each month, American Express sends a bill with the minimum payment due. This late fee is added to your balance.
After you stop paying and time passes, the bank may seize accounts in your name.
With a charge card, the complete balance must be paid in full. If not paid in full, American Express first charges an interest fee and sends a polite note. The second time, they charge a fee and send a not-so-polite warning. The third time they charge interest and cancel your account.
American Express Late Fees
American Express will charge a late fee of $29 the first time you fail to make at least your minimum payment by the due date. The fee goes up to $40 if there’s another late payment in the following six billing periods.
Grace Periods and Credit Card Options
Starting January 1 if you miss paying in full American Express will charge a late fee. The typical grace period for American Express cards is 25 days. Both the Blue Cash Everyday® Card and the Blue Cash Preferred® Card are regular credit cards that don’t need to be paid in full each month.
Impact on Spending Limits
American Express determines spending limits based upon your payment history with their cards. To avoid this situation, expect to have a low credit limit when you start using a no pre-set spending limit card.
Settling Debts with American Express
Settling With American Express typically requires a lump sum payment that is less than your current outstanding credit card balance. When is an American Express settlement the right choice? When you’re trying to eliminate your debt or experiencing financial hardship, an American Express settlement might be the right choice for you. This gives you an opportunity to negotiate a lump-sum payment for the remaining balance on your credit card.
Charge Cards versus Credit Cards
An American Express card, also called an “Amex” card, can offer a variety of perks, including rewards points, cash back, and travel perks. The key difference: Credit cards let you carry a balance from month to month, while charge cards require you to pay in full each month.
Pay Over Time Feature
Interest charges accrue when you don’t pay the bill off in full. Pay Over Time charges an interest rate that is the same across the Green, Gold and Platinum products. As of August 2020, cardholders who use the feature will pay an APR between 15.99% to 22.99%, depending on creditworthiness.
Minimum Payments and Interest
The American Express® Gold Card minimum payment is the statement balance, plus any plan payment or cash advance payment due. In addition, if you miss a payment, Amex will add the past-due amount to the minimum payment, including any interest and late fees.
Unlike traditional credit cards, American Express cards do not charge regular interest, as all balances must be paid in full each month. However, the Gold card does offer cardmembers the flexibility to pay for purchases of $100 or more over time at a set interest rate.
Specifics of the Amex Platinum Card
Does Amex Platinum have to be paid in full each month? You must pay in full, by the Payment Due Date, all charges that are not added to a Pay Over Time, Cash Advance, or Plan balance.