Introduction
Like many of you, I got the AMEX Blue + Business card last month because it had that 20K after $3K spend signup offer. What I didn’t really notice was that the card actually has a 0% APR on purchases for AN ENTIRE YEAR. I usually just skim over things like 0% APR mainly because I don’t like carrying over high balances these days. However, the other day, it dawned on me that because this is a BUSINESS CARD, meaning that the balance won’t appear on your credit report at all. So, it’d be stupid if you didn’t take advantage of this offer.
Rules
When I went over my CL a few weeks ago, I got the following email below. It does say that my ‘minimum due’ will be the amount I charged over my CL. So if my CL was $10K and let’s say I charged $10K, then my min payment would be something like $400 (I pulled that out of my ass.) Now if I had charged $15K, then my min payment would be $5,400. Now remember the 2X limit is up to the first $50K, so your free float is whatever your CL is. You can keep charging to hit the $50K, but you’d have to pay that ‘overage’ amount each month.
What if
While I haven’t tested this out yet, if you have another business credit card like the Simply Cash or business SPG, if you transferred that CL over to the Blue +, then does that mean you get more free float? In theory, it should work. I tried to send some CL over from my SC yesterday, but after 30 seconds, it gave me an error. I think that was because you need to have the new card open for 60 days before you can transfer CL to it.
Conclusion
After realizing all this, I changed my autopay to only pay the minimum amount due. On your statement, it lists when your 0% APR ends, so also set a calendar reminder to make sure you have that lump sum to pay it off come next June 2018.
FYI – Amex is telling me that they can only reallocate CL if the from-card is more than 1 year old.
Do it online so you avoid talking to them.
You tha man Vinh. I never noticed this either and we have 2 cards in the family at around 30k CL combined….time for some free float. For those asking what to do with float, there are tons of bank account offers that want 5k or 10k to sit in an account for a few months to earn $200 or $300 bonuses. DoC has a bunch of these detailed. CapOne 360 etc. Easy money.
Bro, you can transfer CL from personal Amex card to your Blue Business Plus. No need for the transferor to be a Business card as well. Hope that helps.
Ah didn’t even try that since I break out my MR cards on one login and non-MR on other. Good tip.
I’ve seen a couple references lately to Business Credit Reporting. I think some blogger even posted a link for how to monitor one of them. Curious what impact this would have on that report and if it might have a negative effect when applying for Business CC’s.
Yeah I remember that article. I’m okay with taking that risk for the free float.
I guess I am just not connecting why you would want to float that amount of money.
It makes sense if you’re otherwise maxing out your credit limits in the process of MSing, reselling, etc. Or at least if you’re maxing out against the level you’re comfortable with, especially on personal cards.
Take out the $10K CL. Put it in the S&P 500. Earn 10%. Pay back the $10K and keep ~$700 after taxes.
Just want to caution that the S&P can also fall 10% during that period. Over a long stretch the S&P is likely to rise but in 12 months, anything is game.
Safer option for guaranteed return would be a ~1.35% 11-12 months CD at an online bank like Ally. All depends on your risk tolerance.
Sure, a 1.35% APY at a bank is safe, but you are still losing money. Inflation registers around 2% each year, meaning not only do you pay taxes on that 1.35%, you LOSE buying power. “Invest” in bank CDs and you are guaranteed to lose money in the long run. I’ll take my chances any day with the stock market, where I’m not 100% guaranteed to lose money like a CD. Not only this, you get over a 2% dividend with the S&P – MORE than a CD.
Nothing wrong with what you said. But just be mindful that everyone has different risk tolerances. I have zero issues with any financial decisions people make as long as they go in with all the facts.
John is right. People should be aware that they could lose all their money in the market, so it’s not a sure thing like a CD. Different people handle risk differently.
A Northpointe High-Interest Checking account at 5% up to 10K. There is also the Insight 5% Prepaid card up to 5K.