Terms apply to American Express offers. See the card application for more details.
Pay Over Time by American Express is a simple extended repayment feature offered to specific cardholders. It allows for a little more flexibility when it comes to paying off a card by giving the option to actually carry a balance. Essentially, Pay Over Time turns what would traditionally be considered a charge card into a more traditional credit card.
American Express’s Pay Over Time feature, in theory, adds flexibility for those needing a little more time to pay off their balances. In reality, though, the feature comes with some hefty interest charges. Those considering Pay Over Time should make sure they have all the details before utilizing it.
Although carrying a balance is almost never recommended, there are benefits to consider when using Pay Over Time. With a little knowledge and some smart planning, you can maximize this option, while avoiding getting hit with hefty interest charges.
Pros
- Payment flexibility
- Available on eligible business and personal cards
- Continue to earn rewards on purchases, as usual
Cons
- High APR based on creditworthiness
- Purchases are automatically added to your Pay Over Time balance unless you turn this feature off.
- Penalty APR for late or missed payments remains for at least six months on personal cards and 12 months on business cards.
- Carrying a balance may reduce your credit scores depending on your credit utilization ratio.
How Pay Over Time Works
If Pay Over Time is activated on your card, eligible charges are automatically added to your Pay Over Time account. Because charges are automatically added to your Pay Over Time balance, it’s extra important to be aware of when your card statement closes and pay it off before the due date, otherwise you can be charged interest.
Amex sets a Pay Over Time limit, but it’s a limit on the Pay Over Time balance you can carry rather than a set spending limit. Your balance carried with Pay Over Time cannot go over your Pay Over Time limit, just like with a credit card cannot exceed your credit limit.
When it comes to paying your Pay Over Time balance, you have a few options. You can choose to pay off the balance in full each month, which also allows you to avoid paying interest. You can opt to pay the minimum balance. Or, you can pay the minimum payment plus any additional amount you choose.
Charge Cards vs. Credit Cards
Most people are familiar with credit cards and how they work. However, there is another form of credit-type payment called a charge card. A charge card differs from a credit card in a few distinct areas.
First, with a charge card, you must pay off your balance in full each month, unlike a credit card where you are only required to pay the minimum payment each month.
This extra flexibility from credit cards comes at a price. Cardmembers who carry a balance are generally required to pay interest on their balance. This rate is determined by the card provider and is dependent on the individual and their creditworthiness. When it comes to credit cards which earn rewards, a high APR is almost guaranteed.
Charge cards, on the other hand, do not incur interest charges since cardholders are required to pay off their balance in full generally each month. With Amex pay-in-full cards, you’ll be charged a fee on the balance you carry.
Another difference is the limit on how much money the issuing bank will lend you. Charge cards have no preset spending amount. While credit cards, on the other hand, come with a specified limit, which is unique to the specific card, the individual and dependent on their creditworthiness.
Are You Eligible for Pay Over Time?
To find your Pay Over Time limit, log in to your account at AmericanExpress.com and navigate to the Balance Features tab on the home page.
Just like with a credit card with a credit limit, American Express can increase or decrease your Pay Over Time allotment at any time.
Cards That Offer Pay Over Time
Here are some American Express cards that may be eligible to use Pay Over Time (Terms apply):
- The Platinum Card® from American Express
- The Business Platinum Card® from American Express
- American Express® Gold Card
- American Express® Business Gold Card
- American Express® Green Card*
- Business Green Rewards Card from American Express*
Enrolling in Pay Over Time
The ability to enroll in Pay Over Time depends on the type of card you carry, whether it’s a personal card or a business card. Most personal and business charge cards now come with Pay Over Time automatically active, but you’ll need to check your account to be certain. To check your enrollment status, you can visit Amex’s link and log in. Alternatively, you can access the information by calling the number on the back of your card.
If you find that Pay Over Time is not active, you can easily request to activate it by choosing the “Pay Over Time: Activate” option and submitting your request. Card members can change their settings between active and inactive, at any time.
If you have a card that is not enrolled and don’t have an immediate need for financing, you may want to wait until you receive an offer from American Express to do so—promotions for bonus points occasionally exist.
Find The Best American Express Credit Cards Of 2024
Pay Over Time Promotions
This is where the Pay Over Time feature goes from a simple cash grab financing feature to a lucrative benefit that can be a game changer.
Frequently, American Express sends out targeted offers to cardmembers. The most common offer we’ve seen gives 10,000 Membership Rewards® for enrolling in Pay Over Time. Elevated offers of up to 20,000 Membership Rewards have been seen.
These offers only require that users enroll in Pay Over Time. Actually using the feature and carrying a balance is not necessary.
Deactivating Pay Over Time
Deactivating Pay Over Time can easily be done by calling the phone number on the back of your card or by logging into your account and selecting the “Pay Over Time: Inactive” option. Once you hit submit, the changes take place instantly.
You’ll need to update the setting for each individual card account. If you have two cards, for example, you need to unenroll each card separately.
After unenrolling, you will see a confirmation message that your Pay Over Time setting is set to inactive.
Why You Should Unenroll
Leaving your Pay Over Time as inactive has a few benefits. First, it’s the best way to ensure you don’t accidentally end up with a balance and ultimately get charged high interest fees.
The next reason to unenroll from Pay Over Time is for promotional eligibility purposes. American Express sends out amazing offers to enroll in Pay Over Time. You will not receive offers to activate Pay Over Time if you are already enrolled. Unenrolling opens up the option to receive these offers sometime down the road. And since these offers can be lucrative, it’s worth unenrolling if for this purpose alone.
How Pay Over Time Stacks Up
If you plan to finance a purchase and are in a position to get a new card, these cards could make more sense for you than Pay Over Time.
Discover it® Cash Back
The Discover it® Cash Back credit card offers a generous 0% introductory APR for 15 months on purchases and eligible balance transfers. Then, a standard rate of 17.24% - 28.24% variable applies. A balance transfer fee of up to 5% of the amount transferred applies. The card also comes with rewards-earning potential.
With a baseline 1% cash back, this card doesn’t seem overly appealing. But new account holders receive a Cashback Match™ on all earnings at the end of their first year. Access to an introductory APR on purchases, plus the chance to earn a Cashback Match on all purchases made during the first year as a cardholder makes this a much better option than financing through American Express’s Pay Over Time feature in the near term.
Other benefits of the card include 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically. All of these great benefits are available on a card without an annual fee.
Chase Freedom Flex℠
Another fantastic option for longer-term financing is the Chase Freedom Flex℠. New cardmembers can enjoy a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. Balance transfer fee of up to 5% (min. $5) of the amount of each transfer applies.
The card earns a standard 1% cash back on purchases, but offers a variety of elevated spending categories where you can receive bonus points. You can earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases.
Using the Chase Freedom Flex’s introductory APR is a no-brainer for those looking for a new card who need to carry a balance. The ability to earn Chase Ultimate Rewards® is a fantastic bonus on top of all the other benefits of the Freedom Flex.
Is Amex Pay Over Time Worth It?
Although the idea behind Pay Over Time is appealing, the high interest rates make it a pretty terrible option. If you find yourself in an emergency and are considering the feature as a way to lend yourself some capital, you would be much better off using a lower APR card or finding a low-interest loan. You should be able to find credit cards or loans with a lower APR than the interest for Pay Over Time.
If you receive a targeted offer of 10,000 or even 20,000 Membership Rewards points to enroll in Pay Over Time, then it is worth activating the feature. But remember: You’ll need to either cancel the feature or make sure to keep meticulous records so you don’t accidentally negate the amazing value of the points through interest-related fees.
Discover it® Cash Back
For moderate spenders who are willing to activate the 5% rotating categories and track the quarterly spending cap, this no-annual-fee card can deliver tidy rewards outside of its ongoing 1% earning rate.
- 5% cash back on quarterly rotating spending categories throughout the year (activation required)
- Discover will automatically match all the cash back you’ve earned at the end of your first year
- No minimum cash-back redemption
- 5% bonus cash-back rate is limited to $1,500 per quarter in spending
- Bonus categories must be activated quarterly
- Low 1% base reward rate on everything else
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
- Redeem your rewards for cash at any time.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get a 0% intro APR for 15 months on purchases. Then 17.24% to 28.24% Standard Variable Purchase APR applies, based on credit worthiness.
- No annual fee.
- Terms and conditions apply.
To view rates and fees for The Platinum Card® from American Express please visit this page.
To view rates and fees for The Business Platinum Card® from American Express please visit this page.
To view rates and fees for American Express® Gold Card please visit this page.
To view rates and fees for American Express® Business Gold Card please visit this page.
Frequently Asked Questions (FAQ)
Do you have to pay off American Express every month?
If you have an American Express pay-in-full card, paying it off every month is mandatory. For cards with the Pay Over Time feature activated, however, you can carry a balance but you will be charged interest.
What happens if you don't pay American Express in full?
If your American Express card does not have the Pay Over Time Feature activated, you’ll be charged a fee of on the balance you carry. If you do have the Pay Over Time feature activated, you’ll be charged the Pay Over Time interest on the balance you carry.
Can you carry a balance on Amex?
You can carry a balance on an Amex credit card, if it is not a charge card or if it’s a card that has the Pay Over Time feature enabled.
Does pay over time affect credit scores?
Using the Pay Over Time feature can affect your credit scores, since carrying balances on your credit cards could impact your scores. The lower your card balances are, the better your credit scores will be.
Why is my American Express minimum payment so high?
With American Express pay-in-full cards, you’re not allowed to carry a balance from month-to-month. Your payment may be high, if your purchases that month were high. If you’re using the Pay Over Time feature on an American Express card, your minimum payment could be high because it includes all charges made while not using the Pay Over Time feature, plus interest and a portion of your Pay Over Time balance.
