American Express Gold Rewards Card Activated - Step 1 Complete

As I mentioned last week, I decided to try for some free money by signing up for an American Express credit card.  I’m keeping track of the steps I go through and the “terms” to watch out for to make sure I get my rewards and don’t pay any extra fees.  Now that my card is activated, the first step in the timeline is complete.

Business Card
American Express really wants you to get started spending on the card, mine arrived in the mail in just 4 days. When I called last night to activate the card I was transferred to a live person after entering my card number into the automated system.  After verifying my name, the card number, and that I was the primary holder she asked me how business was going and why I chose the card.  You don’t have to have a business to apply but be ready to answer the question “how’s business” when you call in to activate it.

Spending Limit
She explained that the card has no preset spending limit, which I learned is different than no limit at all.  American Express has to approve every purchase made on the card based on your payment history, credit record, and financial resources available for payment.  The more frequently you use the card and the more money you spend on it the higher your spending limit is automatically adjusted. Since I only plan on using the card twice it doesn’t matter much to me what the spending limit is. However having a card with no preset spending limit does sound dangerous. The more you spend, the higher it goes.

Card Promotion
When I opened the envelope with my card it indicated I would receive 5,000 bonus points with my first purchase. I was a little concerned because the reason I signed up for the promotion is that I was expecting 25,000 bonus points.  The phone rep explained that the 5,000 points is standard with all of these new cards and that the 20,000 was a special offer that wouldn’t show up in the material but would be honored.  I’ll have to keep an eye on my statement and make sure I get those extra points.

Extended Payment Option
She also said I was eligible for a special one time invitation only event to add an extended payment option that would effectively turn the charge card into a credit card.  I was immediately skeptical since most anything billed as a “one time offer” is usually just a sales tactic to get you to signup. Any amount over $200 could be rolled over to the next month and I’d pay interest on the balance at prime + 9.99%. I never carry a balance on any type of card so I immediately declined the option.

Rewards Redemption Timeline
Now I’m ready to take the second step towards redeeming my rewards that I laid out when I applied for the Business Gold Rewards card.  I’ll spend a dollar on the card to trigger the 25K bonus points.  I found out when my billing cycle ends so I can coordinate making my purchases and redeeming my rewards later on.  So far so good; no extra fees and things seem to be going as planned.  Avoiding the extended payment option on purchases is the key point I’ve picked up so far.  I’ll keep you updated as I move through the process.

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