American Express has a rule limiting the number of cards customers may have. Amex allows only up to five credit cards, regardless of whether they are personal or business credit cards. Amex has also indicated that the limit for Pay Over Time cards is 10.

With this new rule coming into effect, it’s worth understanding the differences between credit cards and Pay Over Time cards, and which Amex cards fall under which category.

How are Pay Over Time cards different from credit cards?

Credit cards allow you to spend up to a preset spending limit (your credit line). You are only required to make a minimum payment each month, and may carry the rest of the balance onto next month’s bill. However, doing so leads to high interest rate charges. This is why you should pay your statement balance off in full each month. Also, failure to make the minimum payment results in a late fee charge.

On the other hand, Pay Over Time cards do not have a preset spending limit. According to Amex, Pay Over Time gives you the option to pay eligible charges over time, with interest. If you pay your new balance in full by the payment due date each month, you will not be charged interest on these charges. However, if at the time you activate Pay Over Time, you’re already carrying a Pay Over Time balance from your last billing period, you’ll be charged interest on new eligible charges starting from the transaction date.

When it comes to applications, Pay Over Time cards typically require applicants to have excellent credit. Meanwhile, credit cards vary widely in the quality of credit required for approval depending on the card (think a student credit card compared to a premium travel credit card like the Chase Sapphire Reserve, for example).

Which Amex cards are Pay Over Time cards and which are credit cards?

Here is a handy breakdown covering most American Express cards:

Final Thoughts

Any limitation on the number of credits cards is always disappointing. But understanding the difference between Pay Over Time cards and credit cards and keep track of your count will help you stay within Amex's rules.

What is your favorite Amex Pay Over Time card? Join the discussion in our Facebook group!

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