American Express platinum credit card

EasyLay

Hi,

A friend has suggested I start using the Platinum American Express card as I can get money back from this. I would use it for all my major purchases (groceries, petrol, etc) then pay it off with my current account and earn free dosh at the end of the year. Simple, no?

However I am a bit doubtful, mainly as if I forget to pay it off each month I will be hit by a much higher interest charge than my current account. I read somewhere that I can set up a direct debit from my co-op account to automatically pay off my AmEx account. Is it possible to do this, and if so won't the money take 5 days to clear?

Thanks for any advice
Mike

lisyloo

Simple, no?

Well yes and no.
1) You have to spend £2K within 3 months to get max cashback (£100) (this mean timing it before xmas or a holiday or big purchases).
2) You then have to spend £3K within the year to qualify.
3) You card won't be accepted everywhere so you need a backup.
4) You cannot let the card go dormant else you might lose the card, so buy petrol or sandwich now and again once you reach the limits.

If you stick to the rules yes you can get £100.

mainly as if I forget to pay it off each month

Most card companies allow you to set up a direct debit.
Alternatively get a diary or electronic alert system, but DD is safest.

Is it possible to do this, and if so won't the money take 5 days to clear?

They will take the DD in advance and more importantly it's THEIR responsibility to take it on time.

I've done it 3 times and IMO £100 is worthwhile if you are the sort of person that can stick to the rules and has the right expenditure pattern (promotional 5% is for 3 months only so you need a period where you can spend £2k in 3 months).
Whether it's too difficult for you depends on whether you can stick to those rules and can spend the correct amounts.
£2K in 3 months may be a challenge for some people but other have business expnses etc.
I got mine in November so I had all my Xmas spending on it.

EasyLay

Thanks for great response!

Another thing, with the spending all going on an AmEx card I guess this would be a good way to avoid accruing overdraft charges on my current account. If I allow the debt to stack up on the credit card then pay it off at the last minute from my current account I will avoid most of the charges

lisyloo

I guess this would be a good way to avoid accruing overdraft charges on my current account

Yes.
But don't let it tempt you into spending more as that would be a vicious circle.

planteria

im a big fan of the Amex Cashback card.
i have been referring people and offering them half of my £20 (ie. £10 to add to their £20 = £30) over on stoozing.com
i would get one, channel as much spending onto it as possible, and have a DD set up from your current account to clear the full balance each month.

mac2008

You MUST set up a d/d to at least pay the minimum, as the T&C's state cashback is forefit for any month this doesn't happen.

You'll also need a squeaky clean credit file and an income of £30k+

Having said that, I've had mine for nearly a year and will get around £170 in cashback credited this month. Virtually all the places I shop accept Amex - even our little corner shop. Even after the 5% period ends, 1 or 1.25% for nothing is a good deal, and gradually adds up.

You can also receive your cashback as vouchers, adding an extra 5% to the value, and Amex customer service is really excellent - intelligent people able to sort problems by email or 'phone.

Plus, the card is a nice shiny platinum colour with a kind of 3D effect...mmm...shiny

lisyloo

You MUST set up a d/d

I don't believe you have to (I never had) although might be a jolly good idea.

Even after the 5% period ends, 1 or 1.25% for nothing is a good deal

I believe it goes to 0.5% first and is only paid on £s.
Hence once I get through the promotional period I go onto Egg at a flat 1% (although don't let it go dormant).

intelligent people

English people.
I'm not being racist but foreign accents can be difficult (and that includes Newcastle).

Stuff the poser value.

The_White_Horse

i have this card. it is good. but watch out. they round down. if you spend 123.49, you will get back (at 1%) only 12p.

personally, i think they should wait until the end of the year, add up your total spend, and give you the cashback on that figure.

lisyloo

If you aren't going to get above 1% (which I wasn't) then you might be better off with a flat 1% cashback card after the promotional period.
Although EGG has just been bought by Barclaycard.
Cap One is still doing 1%

Don't forget not to let your card go dormant though.

FB13

mac2008 wrote: »

You MUST set up a d/d to at least pay the minimum, as the T&C's state cashback is forefit for any month this doesn't happen.

Not true. You DO NOT have to set up a direct debit. Cashback will be forfeited if you don't pay the minimum, but you can pay however you want. In no way is setting up a direct debit mandatory.

mac2008

FB13 wrote: »

Not true. You DO NOT have to set up a direct debit. Cashback will be forfeited if you don't pay the minimum, but you can pay however you want. In no way is setting up a direct debit mandatory.

Apologies - you're right in that you don't have to set up a D/D - I was suggesting to the OP that they must, as they mentioned being prone to forgetting to pay