Pay Over Time was always a feature for American Express charge cards. Cardholders can choose to pay their statements in full or carry a balance on eligible charges, up to their Pay Over Time Limit.
However, it was recently brought to my attention that some of my cards were auto-enrolled in Pay Over Time, which makes them act like credit cards.
Cards auto-enrolled in Pay Over Time:
You can check your Pay Over Time status by logging into your Amex account -> Account Services -> Pay Charges Over Time. All of my cards had a default Pay Over Time limit of $10,000.
An important note is that although there is a Pay Over Time Limit, it’s not the same as a credit limit. While the cards technically don’t have a credit limit, if your Pay Over Time Limit is $10,000, you can carry a balance of up to $10,000 and pay the remainder in full.
Important note: Although Pay Over Time is an option, I recommend avoiding it since paying interest usually negates any points value. Always pay off the credit card balance in full, and don’t get a credit card if it tempts you to spend more than you normally would.
The negative impact of being auto-enrolled in Pay Over Time is that cardholders are no longer eligible for the 10,000 MR bonus. In the past, Amex sent out targeted offers to enroll in the optional feature. My guess is that the bonus no longer exists.
I had my fair share of enrollment bonuses since I have multiple Amex Platinum and Gold cards.
The elephant in the room is why American Express would change their charge cards to credit cards. To answer this question, let’s dive into their Q4 2019 financial statements.
Since Amex is a publicly traded company, its earnings report is publicly available: https://ir.americanexpress.com/Cache/IRCache/1ef02650-2d57-1ac2-cedb-51e6bc3ad90a.PDF?O=PDF&T=&Y=&D=&FID=1ef02650-2d57-1ac2-cedb-51e6bc3ad90a&iid=102700
If you flip over to page 8 in the earnings report, you can see that the charge net write-off rates jump from 1.4% to 1.9% within 12 months. However, it looks like the 30+ days past due percentage has little change.
My guess is that since the charge net write-off rates have increased, Amex would rather collect interest on outstanding balances instead of writing them off.
By auto-enrolling cardholders in the Pay Over Time program, Amex can earn more interest income instead of chasing after delinquent accounts.
Provisions for losses is money set aside for write-offs. Total provisions for losses jumped from $809 million in Q1 2019 to $1.024 billion in Q4 2019.
It’s no secret that American Express makes a large percentage of their revenue via swipe fees, which increased by 6% in Q4 2019. Other notable increases are net card fees (annual fees) and net interest income.
My prediction is that more people were getting the cards due to good marketing, and they ended up paying interest as opposed to paying the card off in full each month.
By auto-enrolling cardholders in Pay Over Time, Amex is cutting back on potential write-offs and making money on the interest. Only time will tell if their strategy is more profitable.
What if you could save time and find multiple credit card offers that you're prequalified for without impacting your credit score? Sometimes, you may even get targeted for special offers (not publicly available) based on your credit profile when you use the CardMatch Tool.
CardMatch is a tool that shows you pre-approved and special targeted offers (sometimes) from select credit issuers. The tool conducts a soft pull so that it won't affect your credit score. See your matched offers in less than 60 seconds.
Every so often, the CardMatch tool has great offers for select cards. For example, not everyone will be targeted, but sometimes you can find The Platinum Card® from American Express with 125,000-150,000 point welcome offers after you spend $6,000 within the first 6 months. Terms apply. A couple of AskSebby subscribers have reported they were able to apply for and get the offer. YMMV.
Users may not be matched with all offers or banks, and matches are based on your credit profile.
To take advantage of targeted offers available, simply go to the CardMatch Tool. Enter your information, agree to the terms of service, and the system will search for offers.
Be sure to view "All Matches" to see everything you're targeted for.
Want to see if you're pre-qualified for any great offers? Try it out yourself!
On July 23, 2017, Citi removed their card benefits like trip protection and insurances.
A lot of cardholders are wondering what their options are — should they cancel or product change the Citi Prestige?
A significant factor in determining which route to take is the annual fee. The annual fee is $450, but it comes with a $250 travel credit, making the effective annual fee $200.
In some cases, you can apply in-branch to receive a lower annual fee of $350, making the effective annual fee $100 after the travel credit.
The main question is if the lower $350 annual fee will be honored the second year, or if the fee will increase to $450.
We’re hesitant to keep the card with an effective $200 annual fee because there are alternative luxury cards like the Chase Sapphire Reserve and American Express Platinum that provide the same, if not better, value.
Before considering downgrade/product change options, we need to consider if this card is worth keeping.
The best perk the Citi Prestige is known for is book 3 consecutive nights, get the 4th night free. In order to redeem this perk, you have to book through the Citi Prestige Concierge.
Effective July 23, 2017, Citi will rebate the average room rate across your stay of 4 or more nights, not including taxes.
My main concern is that if I cancel or product change the card, I won’t be able to receive an intro bonus for a Citi card (that earns ThankYou points) in the next 2 years.
Citi has a rule that you can qualify for an intro bonus every 2 years across the same product family. For example, if you were approved for the Citi ThankYou Preferred card in 2015, you would not receive an intro bonus for the Citi Prestige if you applied the same year. You would have to wait until 2017 to qualify for another Citi intro bonus.
Since I signed up for the Citi Prestige in September 2016, that means I won’t be eligible for another ThankYou bonus until September 2018. If I cancel the card now, it resets the clock meaning I won’t be eligible for another bonus until September 2019.
In terms of product changes, there are 3 cards I’m considering:
Pros:
Cons:
Pros:
Cons:
Pros:
Cons:
To request a product change, call the number on the back of your Citi Prestige credit card. Let the agent know which product you'd like to switch the card to.
Disclaimer: Don't be that person who is obnoxious and demands an upgrade. You are not entitled to an upgrade — they're usually given based upon availability.
We've been traveling a lot the past month and tested a few methods to see how to get free hotel upgrades. Here are our learnings about what you can do to increase the chance of getting an upgrade, depending on availability. These tips do not guarantee an upgrade.
If you have status with the hotel group you're staying at, your chances of getting a free upgrade increases. Traditionally, people earn status from hotel stays. In order to earn Gold status at the Ritz-Carlton, you'll need 50 nights or 5 meetings. That's a lot of nights!
To get around this, certain credit cards like the Ritz-Carlton, Amex SPG, and the Amex Platinum card will give you certain status levels for free.
There are a ton of people who approach the front desk staff acting like they're entitled to an upgrade. Being nice increases your chances of getting an upgrade.
Follow the Golden Rule: treat people how you would want to be treated.
This one is a bit grey area, but if you have a special occasion to celebrate like an anniversary or honeymoon, it may increase your chances of getting a free upgrade, depending on availability. We don't personally do this, but we have heard success stories from friends.
It's counter-intuitive, but for all of our stays where we received a free upgrade, we checked-in on a weekday and relatively late (after 8 pm).
The Ritz-Carlton, Laguna Nigel: Checked-in at 10pm, we were offered 3 different complimentary upgrade options.
The Ritz-Carlton, Los Angeles: Checked-in at 6pm, got a free upgrade to a corner room junior suite.
Hilton Double Tree, NYC: Checked-in at 7pm, booked through Hotels.com because there was a good deal, but we were denied a free upgrade because it wasn't booked directly through Hilton. We showed Gold status through the Hilton app on our phone and we were still denied an upgrade.
They assigned us a room on a lower floor, and when we requested a room on a higher floor, the staff granted us a free upgrade to the Hhonors floor.
Some hotel groups won't honor status if you book a reservation through a third-party website. Whenever possible, book the reservation directly with the hotel and be sure to enter your status.
We recently hopped on a private jet to make the most of our JetSmarter membership and ended up in Vegas. Here's our list of what to do in 48 hours in Las Vegas.
Lotus of Siam was crowned the "Best Thai Food in America." Order the crispy duck, soft shell crab over drunken noodles, and garlic prawns.
Be sure to make a reservation at least two weeks in advance. Since this was a last minute trip, we called the Amex Platinum concierge and they were able to secure a reservation with a few days notice.
Visit the Downtown Las Vegas Container Park, which is filled with local boutique shops, a playground, restaurants, and a giant fire breathing pray mantis.
Take a stroll in the old Vegas by walking down Fremont Street. There's a light show, zipline, and tons of restaurants and casinos to see.
Seven Magic Mountains is a temporary public art installation consisting of seven towers of colorful, stacked boulders standing more than 25 feet high. The exhibit will be available until May 2018. You'll need to rent a car to drive there; it's located 20 minutes outside The Strip.
To me, Vegas is synonymous to buffets. I can't leave Vegas without eating at a buffet at least once. My favorite is the Wicked Spoon located inside the Cosmopolitan hotel.
The buffet consists of tapas style plates with offerings like bone marrow, crab, fresh oysters, oxtail pho, and prime rib.
Pro-tip: go 10 minutes before dinner starts to lock-in the brunch/lunch pricing and enjoy the best of both worlds.
The Bellagio's fountains run every 30 minutes from 3pm to 8pm and every 15 minutes from 8pm to 12am Monday through Friday.
On Saturday, Sundays, and holidays, the fountains run every 30 minutes from 12pm-8pm and every 15 minutes 8pm-12am.
The LINQ Promenade is filled with novelty shops including Sprinkles Cupcakes, In-N-Out Burger, and Gordan Ramsay Fish n' Chips. The Promenade also leads to the High Roller (Ferris Wheel).
On our recent trip to see the Canadian Rockies, we flew into Calgary International Airport (YYC) and rented a car to drive to Banff. We spent 24 hours in Calgary and stayed at the Calgary Marriott Downtown Hotel (watch the video at the end of the post for hotel details).
Calgary Tower is located in the heart of downtown. The tower has a 360° panoramic view of the city, and there's also a revolving restaurant. If you dine at the restaurant, you can gain complimentary access to the observation deck.
Calgary Tower
101 9 Ave SW
Calgary, Alberta T2P 1J9
Canada
Stephen Avenue Walk is a historic pedestrian mall located steps away from Calgary Tower.
Stephen Avenue Walk
8 Ave SW
Calgary, Alberta T2P 1B3
Canada
The Galleria Trees sculptures are an iconic part of Stephens Avenue and located between 2nd and 3rd Street SW. There are ten metal trees designed to reduce the wind gusts on the block. The Galleria Trees are also equipped with an audio system and LED lights.
The Devonian Gardens is a large indoor park and botanical garden located in the CORE Shopping Centre (entrance is where the Galleria Trees are on Stephen Ave). Take the escalators up to the 4th floor to explore the gardens.
Devonian Gardens
317 7 Ave SW | CORE Shopping Centre
Calgary, Alberta T6G 2E1
Canada
The Gardens were closed for renovations when we visited, so hopefully, they'll re-open soon!
Alberta is famous for their steak. Charcut Roast House is the brainchild of Chefs John Jackson and Connie Desousa (a Top Chef Canada finalist). The restaurant has a rustic-chic vibe and a farm-to-table ethos.
Charcut Roast House
101-899 Centre Street S
Calgary, AB T2G 1B8
Canada
We ordered one too many items, but it was all delicious. Get the duck fat fried poutine, prime rib of Alberta beef, and the CHARCUT sausage share burger. All the items are farm-to-table and the servers are incredibly knowledgable about the farms each ingredient was sourced from.
Somehow we managed to clear the whole board. It was THAT good.
Prince's Island Park is an urban park near downtown Calgary. There are plenty of picnic areas, hiking trails, and flower gardens.
Prince's Island Park
200 Barclay Parade SW, Calgary, AB T2P 4R5
Canada
The Peace Bridge is a pedestrian and bike bridge designed by Spanish architect Santiago Calatrava. It's located on the far west side of Price's Island Park.
River Cafe is one of the most popular restaurants in Calgary. It's located in the heart of Prince's Island Park and has a great view of the Bow River. Be sure to make a reservation in advance.
River Cafe
25 Prince's Island Park
Calgary, AB T2P 0R1
Canada
Take a stroll in Calgary's Chinatown and grab a bite to eat. Chinatown is located along Centre Street in the northeast area of downtown.
If you're craving Hong Kong style food, stop by Calgary Court Restaurant. I recommend the lunch specials or a classic bowl of wonton noodles.
The lunch special that day was Portuguese baked chicken and pork with spaghetti, milk tea, mushroom soup, and garlic toast, all for CAD $10!
Bow Falls is located in the backyard of the Fairmont Banff Springs. If you're in Downtown Banff and want to go for a light hike, Bow Falls is just a short 5-minute walk away.
Bow Falls
Banff National Park
Alberta, Canada
Downtown Banff is lined with tons of restaurants, bars, and shops. Take a stroll and enjoy some Canadian cuisine.
Park Distillery is a distillery, restaurant, and bar located in Banff National Park. They offer a free distillery tour daily at 3:30 pm.
Park is also great lunch spot; try the rotisserie chicken.
Park Distillery Restaurant and Bar
219 Banff Ave
Banff, AB T1L 1A7, Canada
The Vermilion Lakes are a series of lakes located a short 5-minute drive from Downtown Banff. Vermilion Lakes consists of three lakes formed in the Bow River valley.
BeaverTails is a chain store, but it's a novelty. Think Nutella covered pastry topped with fruit or candy. Stop by for a quick snack or dessert.
BeaverTails
120 Banff Ave
Banff, AB T1L 1E7, Canada
After a long day of hiking, take a soak in Banff Upper Hot Springs. The water flow consists of 100% natural mineral water. Banff Upper Hot Springs is commercialized, but it's the closest one in vicinity to Downtown Banff.
Feeling adventurous? You can rent a historic swim suit for $1.90.
Soak Fees:
Banff Upper Hot Springs
1 Mountain Ave
Banff, AB T1L 1K2, Canada
Cave and Basin National Historic site is the birthplace of Canada's national parks. Start your visit with a Discovery Tour, and then explore the historic architecture, bubbling mineral waters, and underground cave.
Cave and Basin National Historic Site
311 Cave Ave
Banff, AB T0L 0C0, Canada
Lake Louise is one of the most beautiful places to visit in Canada. Here are a few tips to get the most out of your trip.
Moraine Lake is less than a 10-minute drive from Lake Louise and well worth the detour. Be sure to visit before 9 am to get a parking spot. Once the small parking lot is full, you'll have to park in overflow and hop on a shuttle to see the lake.
Canoes are available for rent; $95/hour.
There is a free government parking lot located at Lake Louise. When you see the Fairmont Hotel, take a left and there will be a free parking lot with plenty of space. Lake Louise is a short 5-10 minute walk away.
Parking at the Fairmont is $33.
Enjoy lunch or a drink and take in the views of the stunning Lake Louise. We had the prime rib sandwich with a side of French onion soup.
Note: Some of the offers/products mentioned below are no longer available.
For our Bora Bora trip in July 2018, half of our stay was at the InterContinental Bora Bora Resort Thalasso Spa. We reserved all of our nights using points and free night certificates. Here's how to book a trip to Bora Bora with the new Chase IHG Products.
[ Oct 2020 Update ] The Chase IHG Rewards Club Premier credit card currently has an increased offer of 140,000 points and the $89 annual fee is waived the first year.
The benefit of booking with points is that you'll avoid paying for taxes and additional charges out of pocket.
The optimal strategy for booking nights in Bora Bora is to use points + cash if you only have at least 100,000 points from the Chase IHG Premier bonus so you can reserve two nights. Choose the 50,000 points + 125 USD rate.
Ideally, you're in Player 2 mode so you can book a total of four nights if you both have the IHG card.
Spending:
= 2 x Points + Cash
= 100k IHG + $250
Getting:
= 2 nights x rack rate ($959.97)
= ~$1,920 in value
CPP:
= ($1,920 value - $250 cash) / 100k IHG
= $1,670 / 100k = 1.67 CPP
By booking the IHG Bora Bora properties, you're getting at least 1.67 CPP in value.
The most frequently asked question we receive is.."theory is nice Seb, but how do we actually book the nights?" Finding availability for reward nights or points to use in Bora Bora is the biggest hurdle.
The first step to booking the IHG properties is to bookmark the landing page for the reward nights: https://www.ihg.com/hotels/us/en/find-hotels/hotel/list?qDest=Bora%20Bora,%20French%20Polynesia&qCiMy=72018&qCiD=19&qCoMy=72018&qCoD=20&qAdlt=1&qChld=0&qRms=1&qRtP=6CBARC.IVANI&qAkamaiCC=US&qSrt=sDD&qBrs=ic.ki.ul.in.cp.vn.hi.ex.cv.rs.va.cw.sb.ma&qAAR=6CBARC.IVANI&srb_u=1&qRad=30
For me, I checked my desired dates multiple times a day for a whole month to find reward availability.
Dates are usually released 4 months in advance. Don't be afraid to split your time between Le Moana and Thalasso.
If I had to do my trip again, I would spend half my nights in Le Moana and the other half in Thalasso. The benefit of Le Moana is that it's on the main island and you have access to more reasonably priced restaurants and food. The only con is that you are not guaranteed an overwater villa.
For Thalasso, you'll pay a premium for food, but you're guaranteed an overwater villa. If you need to take the IHG shuttle boat to Le Moana after 2:15 PM, you'll have to pay a 2770 XPF (as of July 2018) fee per person, per one-way ticket.
Al Maha is one of the best Marriott Bonvoy redemptions if you plan to visit Dubai. The all-inclusive resort is located one hour away from Dubai, and it’s an amazing escape from the city.
The resort is also a conservation reserve where they have on-site field guides and wildlife.
Al Maha is a Category 8 hotel, and the price ranges from 63,000-100,000 points depending on the season.
Search for availability on Marriott’s site: https://www.marriott.com/hotels/travel/dxbam-al-maha-a-luxury-collection-desert-resort-and-spa-dubai/
Be sure to check the box that says “Use Points/Certificates.”
Example of peak season pricing:
Off-peak season pricing:
The room-rate includes:
Desert Activities to choose from: