439.9% Representative APR

Steve_Tomlin

American Express Platinum card. I thought this must have been a typo on the TV advert. But it’s not. Isn't this higher than payday loans?

MalMonroe

Don't they also charge a fee? 

Maybe they really do want people to pay off the balance in full every month. Or face the consequences.

Years ago I applied for an American Express credit card and didn't even get a response to my application. That told me all I needed to know. I don't want or need them and they obviously don't want or need me. I'm quite happy now with my Tesco, Virgin and Sainsbury's cards. I know where I am with them. And I always pay them off in full every month because paying any interest at all now goes right through me. 

There are plenty of other credit cards in the sea, is my philosophy. 

As for payday loans I'm sure I've seen ads for some of them with a four figure APR so maybe they're worse than Amex?

Jami74

Steve_Tomlin said:

American Express Platinum card. I thought this must have been a typo on the TV advert. But it’s not. Isn't this higher than payday loans?

It's 26% on purchases. The 439.9% rate takes into account the £575 annual fee. 

Steve_Tomlin

Yes you're right, there’s an annual fee. It’s £575. And no, thats not a typo either. 

DullGreyGuy

APR on credit cards is the cost of borrowing £1,200 for 12 months and has to include any fees etc hence many premium credit cards have high APRs

Steve_Tomlin said:

Yes you're right, there’s an annual fee. It’s £575. And no, thats not a typo either. 

But you get £400 of statement credit for using certain restaurants and stores, Priority Pass for you and 1 additional cardholder which on paper is £340 each, MR points, hotel status etc. Its certainly not cheap and the random undocumented benefits used to be more generous but if you travel a fair amount and flying flag carriers rather than RyanAir then it can be interesting... somewhat ironically if you travel a lot then its value depreciates as you'll have your own airline/hotel status which removes the need for Priority Pass etc.

Have to admit though, didn't realise they'd turned into a credit card for new applicants... wonder what they will do with the older chargecard version.

WillPS

DullGreyGuy said:

Have to admit though, didn't realise they'd turned into a credit card for new applicants... wonder what they will do with the older chargecard version.

Nothing, same as the old Gold charge card (and the completely withdrawn Green card). They can't transition customers due to them being a fundamentally different product and I doubt they'd want to force customers to reapply either.

As I understand it they're even allowing charge card holders to upgrade/downgrade between Green, Gold and Platinum still, just no new applicants.

Alex9384

DullGreyGuy said:

But you get £400 of statement credit for using certain restaurants and stores, Priority Pass for you and 1 additional cardholder which on paper is £340 each, MR points, hotel status etc. Its certainly not cheap and the random undocumented benefits used to be more generous but if you travel a fair amount and flying flag carriers rather than RyanAir then it can be interesting... somewhat ironically if you travel a lot then its value depreciates as you'll have your own airline/hotel status which removes the need for Priority Pass etc.

Isn't it a bit funny that Amex cards are advertised as traveller cards but they charge non-sterling transaction fees? Unlike real travel cards with no foreign conversion fees.

WillPS

Alex9384 said:

DullGreyGuy said:

But you get £400 of statement credit for using certain restaurants and stores, Priority Pass for you and 1 additional cardholder which on paper is £340 each, MR points, hotel status etc. Its certainly not cheap and the random undocumented benefits used to be more generous but if you travel a fair amount and flying flag carriers rather than RyanAir then it can be interesting... somewhat ironically if you travel a lot then its value depreciates as you'll have your own airline/hotel status which removes the need for Priority Pass etc.

Isn't it a bit funny that Amex cards are advertised as traveller cards but they charge non-sterling transaction fees? Unlike real travel cards with no foreign conversion fees.

Not really. It's advertised as a card with perks for those who travel a lot, rather than a no brainer card for use abroad.

artyboy

WillPS said:

Alex9384 said:

DullGreyGuy said:

But you get £400 of statement credit for using certain restaurants and stores, Priority Pass for you and 1 additional cardholder which on paper is £340 each, MR points, hotel status etc. Its certainly not cheap and the random undocumented benefits used to be more generous but if you travel a fair amount and flying flag carriers rather than RyanAir then it can be interesting... somewhat ironically if you travel a lot then its value depreciates as you'll have your own airline/hotel status which removes the need for Priority Pass etc.

Isn't it a bit funny that Amex cards are advertised as traveller cards but they charge non-sterling transaction fees? Unlike real travel cards with no foreign conversion fees.

Not really. It's advertised as a card with perks for those who travel a lot, rather than a no brainer card for use abroad.

It's an interesting point though - I don't know if it would be economically viable for Amex, but if (say) they cut the hotel credit to £200 and offered fee free foreign transactions, I wonder if that would make it a more attractive 'all rounder' card for travellers...

DullGreyGuy

You are supposed to use the card to get some of the perks but in practice unless its a statement credit (like the restuarant perk) a hotel isnt really going to care what card you use and so you can get your free room upgrade etc via booking with FHR and then just pay with your Starling card when you get to the hotel. 

Doshwaster

Steve_Tomlin said:

American Express Platinum card. I thought this must have been a typo on the TV advert. But it’s not. Isn't this higher than payday loans?

Just shows that the APR measure doesn't work for payday loans or premium credit cards.

Payday loans are designed to be short term but the APR extrapolates the cost over a whole year. Cards have to include the annual fee in their advertised APR even though it isn't related to the cost of borrowing. If you pay off your credit card in full each month then you won't pay any interest regardless of the APR. It's then up to you to decide whether the fee is worth it.