Your ultimate guide to Amex Pay Over Time

Sep 4, 2020

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Editor’s note: This story has been updated with the latest information. 

Credit card issuers are in the business of loaning money and American Express has creatively expanded the financing options it offers to customers. Today, we’re going to take a look at everything you need to know about Amex’s Pay Over Time feature, including how you can earn bonus points by signing up.

(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)

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Pay Over Time

Pay Over Time is Amex’s most popular extended-financing option, allowing eligible cardholders to pay eligible charges of $100 or more over time with interest. The Platinum Card® from American Express, American Express® Gold Card and the American Express® Green Card come auto-enrolled with Pay Over Time, so cardholders can choose to pay their statement balances in full or carry a balance with interest on eligible charges, up to their Pay Over Time limit.

Starting during cardholders’ November 2020 billing cycle, select Amex business cards will also be automatically enrolled in Pay Over Time. Those cards include:

The information for the Business Green Card and Amex Green Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Pay Over Time has been an opt-in option feature for a long time across Amex’s business credit cards, but the feature will now be automatically embedded into the cards. This takes some of the guesswork out for business cardholders and eliminates a few steps that were previously required in order to take advantage of the feature.

Pay Over Time offers

Amex also frequently offers targeted bonuses to entice customers to enroll in Pay Over Time. The standard offer is 10,000 Membership Rewards points for enrolling (worth $200 based on TPG’s valuations), and the offers tend to be targeted not just to individuals, but to specific card accounts as well. In the past, I’ve had times when my Amex Gold card was targeted but not my Platinum Card® from American Express, or the other way around. You can only earn the bonus once per credit card, but I’ve been able to earn 10,000 bonus points each on all my Amex cards over the years. Most importantly, you don’t actually need to use Pay Over Time to earn the bonus — you simply have to enroll.

Is it worth enrolling?

Although flexible financing is a nice option to have in the case of an emergency, but this is not something you should actively plan on using in most cases.

TPG’s first commandment of travel rewards is to never carry a balance. Not only will doing so wreck your credit, but the rapidly accruing interest quickly overshadows the value of any free travel you might be earning. Unfortunately, the same is true for Pay Over Time.

My Amex Gold card carries an 18.24% APR for Pay-Over-Time purchases, which is lower than many premium travel rewards cards — but still much higher than you should ever be paying. The variable APR on the Amex Gold can range from 15.99% to 22.99% (see rates and fees) with the Pay-Over-Time feature. The human brain is not wired to understand exponential growth well, so it helps to use the “rule of 72.”

When dealing with interest rates, divide 72 by the rate you’re paying and that’s how long it will take your balance to double. Put another way, at 18% interest, your balance will double in four years if you don’t make any payments. Most individuals and businesses should be able to secure emergency financing at lower rates, so you should really only consider this as a last resort.

(Screenshot courtesy of American Express)

Pay It® Plan It®

You can still take advantage of flexible options on any eligible American Express credit card with the “Pay It Plan It” program.

Pay It® is a simple option that lets you pay off individual purchases before your statement closes to help keep your balance down. You can do this yourself by navigating to the payment menu at any time, but Amex is making it easier to pay off specific charges under $100 by tapping on them directly when you see the “Pay It” logo. Note that you can only use Pay It from the Amex app, not from a desktop.

Related: Amex adds new payment options to Green, Gold and Platinum cards

(Screenshot courtesy of American Express)

Plan It® is a great financing option that allows you to pay for eligible purchases over $100 in monthly installments. You won’t pay any interest, but there is a fixed monthly fee so you’ll know exactly how much you owe each month. You can combine up to 10 eligible purchases into a plan, and you can have up to 10 plans running at a given time. Pay It Plan It is only available on personal Amex cards, not business cards.

(Screenshot courtesy of American Express)

The only card I had with qualifying purchases was my Marriott Bonvoy Amex card (closed to new applicants).

When I tried to make a Plan It plan, I was given options for a three-month, six-month or 12-month installments, as well as a promo offer of a waived monthly fee. You can see the original pricing though, which goes up as you select a longer plan. The fees ranged from about 1.8% over a three-month period to just over 9% for a one-year plan. Note that if you opt to use Plan It, you can’t pay your balance off early, and you’ll be forced to make monthly payments and continue paying the agreed-upon fee.

(Screenshot courtesy of American Express)

Bottom line

Amex has been actively expanding its extended-financing options. However, the fees and interest rates mean that you should really only consider these programs as last-ditch options if you suddenly find yourself unable to pay your credit card bill.

Even if you have no intention of ever using Pay Over Time, I’ve earned about 40,000 Membership Rewards points over the years by enrolling my various cards in targeted offers, so keep your eyes peeled for any future deals.

Additional reporting by Chris Dong

For rates and fees of the Amex Gold Card, click here.

American Express® Gold Card

With some great bonus categories, the American Express Gold Card has a lot going for it. The card offers 4x points at restaurants worldwide, at U.S. supermarkets (up to $25,000 per calendar year; then 1x), and 3x points on flights booked directly with airlines or through amextravel.com.

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More Things to Know
  • Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
  • Earn 4X Membership Rewards® Points on Restaurants worldwide, including takeout and delivery.
  • Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
  • $100 Airline Fee Credit: up to $100 in statement credits per calendar year for incidental fees at one selected qualifying airline.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
See Pay Over Time APR
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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