DH said:


<< The reason I gave credence to their position was because it reflects my understanding of the language of the cardmemeber agreement. >>


Fair enough; however, I interpret the language differently. "Carrying a balance means you have not paid your outstanding balance for your statement in full by the payment due date on that statement." To me, the "that" makes it sound like if you don't pay off the balance for a given billing cycle, you will get the bonus on all purchases during that cycle. If I am right, it also means that I will not get the bonus during the sixth billing cycle since I plan to pay off my entire balance before the end of that cycle. If I am wrong, it should mean that I will get the bonus for purchases during the sixth billing cycle (but not the first), so either way it's not making a big difference for Amex (unless, of course, you are making a huge purchase in the first month to take advantage of the 0% APR)... hopefully that is clear enough. If not, just ask.

<< << She said that if I did a BT in the first month and then made a purchase after that, it would qualify for the bonus. >>

I wonder if she would have said the same had you asked if you did the BT AFTER you made the purchase in the first month (my scenario if I followed NotAFool's suggestion.) >>


I doubt it, but I don't think it really matters what she said... she doesn't have the authority to make policy or even interpret it. The card member agreement is the authoritative (albeit ambiguous) statement on the matter. Since the definition of "carrying a balance" doesn't depend on balance transfers, I think it can be argued that BT will not make any difference in whether or not the bonus is awarded.

dajabon:
There is another thread that covers the best rewards CC for small spenders. I suggest looking there for answers.

<< Fair enough; however, I interpret the language differently. "Carrying a balance means you have not paid your outstanding balance for your statement in full by the payment due date on that statement." To me, the "that" makes it sound like if you don't pay off the balance for a given billing cycle, you will get the bonus on all purchases during that cycle. If I am right, it also means that I will not get the bonus during the sixth billing cycle since I plan to pay off my entire balance before the end of that cycle. >>

This is how I read it as well.

Now, a couple questions for you guys. First, a little background. I am 21 years old and will be a senior at the University of Illinois. Currently, I have 2 credit cards - an AMEX Blue for Students and an MBNA student card (that I do not use). I have a limit of $1700 on my amex card and $2600 on the MBNA card, I think. My question is -- Do you think I will be approved for these "cashback" cards, and if so, how much would I have to put for household income to get a good limit (say, $10,000)? I would like to take advantage of the "bond deals" that I have recently read about. But I don't want to screw up my credit just to get a few extra bucks. But this free money thing is intriguing.

Any suggestions or comments that you could give me would be greatly appreciated. Thanks!

Brad

You'd need a household income of ~$100K to get a credit limit of $10K...

Since you asked... I think there would be a problem with putting $100K if your household income is not $100K. I would suggest you put as high a number as you could support if they were to ask you prove it. Others here may have other opinions though.

In an earlier post, I had indicated that a CSR had told me that the bonus rebate applies to all purchases in the billing for which the balance is not paid in full. I wrote:


<< Since the card agreement appeared to be ambiguous, I asked her to send me her answer in writing. She said that she would have "them" send me a clarification to the agreement. >>


I received the following letter this weekend (any typos are mine):


<< Dear xxxx:

Thank you for your recent inquiry regarding CUSTOMER SERVICE. We would like to take this opportunity to update you on the status of our investigation.

STEPS WE HAVE TAKEN:
We have initiated a formal investigation into your inquiry. While we are unable to provide you with a resolution at this time, we are making every effort to research this matter thoroughly and provide you with a timely decision.

WHAT YOU CAN EXPECT:
We may find it necessary to contact you for additional information regarding your inquiry.

In order to complete all of the steps required for a full investigation, it may take up to six to eight weeks for us to resolve your inquiry. >>


The conclusion I draw is that we are going to have to figure this out ourselves by looking at are statements after the fact.

Actually, I don't think the first month's statement will be enough to settle the matter. If the bonus is applied to the billing cycle in which the balance is not paid in full, they will have no way of knowing how to calculate this when they prepare the first statement. Only after the payment due date will they know whether or not a balance was carried. I fear that we may not have this resolved until the second statement... and even then, I doubt it will be a very straight forward calculation.

I realize that the first month's statement may not resolve the matter--hence the "hopefully." Indeed, the 2d month's statement might not either. It all depends on how much information they will be imparting to us about our bonus and in what form. They could include this in the first statement if they want to, something like "your bonus will depend on whether or not a balance is carried into the next billing cycle."

If they are smart, they'll get info on this out ASAP, since they WILL have lots of questions about it.

BTs will indeed incurr higher APRs. I will only do a BT if I get confirmation that (1) they're using my interp of the first billing cycle, not talyor's reasonable counter-intepretation, and (2) notafool's BT strategy would work.

<< The Cash reward is paid annually, 2 months after your card’s anniversary date, in the form or a credit to your statement. >>

Does anyone know when the anniversary date for this card is ? Thanks !

<< You will receive an annual rebate on the amount of your Purchases (net of credit for Purchases) made during the previous year ("Annual Purchases" based on the following tiered structure: For the portion of total Annual Purchases at Qualifying stand-alone supermakets, drugstores, gas stations, and home improvement stores in the U.S. ("Everyday Spend" you will receive a rebate of 0.50% for the first $2,000, a rebate of 1.0% for the next $4,000 and a rebate of 3.0% for total Annual Purchases in excess of $6,000. For the portion of total Annulal Purchases that is not Everyday Spend ("Non-Everyday Spend", you will receive a rebate of 0.25% for the first $2,000, a rebate of 0.50% for the next $4,000 and a rebate of 1.5% for total Annual Purchases in excess of $6,000. If, in any billing period, your Account is carrying a balance, you will receive a 2.0% rebate for Everyday Spend and a 0.50% rebate for Non-Everyday Spend posted to your Account that billing period, in addition to your rebate described above, provided your account is not in default. ... >>


The above chunk of agreement makes me think that there are two separate $6,000 tiers because they said:

"For the portion of total Annual Purchases at Qualifying stand-alone supermarkets... you will receive a rebate of 0.50% for the first $2,000.."

When, if they meant our current interpretation, they should have said:

"For the first $2,000 in total Annual Purchases, you will receive a rebate of 0.50% for the portion made at Qualifying stand-alone supermarkets... "

However, the following chunk of agreement indicates there is only one tier and definitively supports our current interpretation and maybe even conflicts with the above chunk?:


<< ...Your rebate will be calculated for each billing cycle in accordance with the timing of your Purchases; provided, however, that if a Non-Everyday Spend item and an Everyday Spend item are purchased on the same day, the Non-Everyday Spend item will be added first to determine your rebate tier level so that you will receive the highest rebate percentage in accordance with the rebate structure described above. ..." >>

Thanks for your efforts here, taylor.

Alas, it's not surprising that Amex is having some difficulty with our question here. HOpefully subsenquent statements will clarify things.