AMEX Blue: what's the catch??

[icecube]

As I'm getting older (I'm 25 now), marketing seems to be getting to me like it never did before.

Anyway, I got an e-mail to sign up for the AMEX blue credit card. Not only does it offer no annual fee, there's a rewards program that you can sign up for free!

Now I want to know what the catch is. Why shouldn't I sign up for this card?

I presently have an AMEX Corporate card through my company and a personal Discover Card. I used to be enrolled in Membership Rewards in the former so I used to charge absolutely everything to it, but I recently cancelled the program since I stopped travelling as much for work and it wasn't worth the $75 annual fee.

But now I can sign up for AMEX blue and rack up points with no annual fee?

Any help would be appreciated. THANKS!!

 

[notfred]

The catch is the same as any other credit card. 10.99% APR for me.

 

[icecube]

Thanks for the reply!

So 10.99% if you carry a balance?

And if you pay off the card on time each and every month, no catch?

 

[clutz123]

as I understand it, the only catch is that the free rewards program with Blue takes more points to get the same stuff compared to the fee-based program. For example, you'll need to spend $2000 instead of $1000 for a gift certificate or something...

 

[rh71]

It's too bad they did away with the pricematching. That was a sweet deal.

 

[icecube]

Thanks for the info!

So let me get this straight. AMEX wants me to rack up a bunch of charges in the next six months at 0% APR so that they can start charging me 14.99% on the balance if and when I can't pay it off after 6 months? (sorry if I sound ignorant...it's just that I always pay my CC balances in full every month...):


Congratulations, your application is approved!

You will receive an introductory APR of 0.00% for purchases for the first 6 months; after that, your APR for purchases will be a fixed 14.99 %.

Your credit line of $2000 will be available after you receive and activate your card.

You will receive your new card within a few weeks.

 

[Spooner]

That's actually a pretty crappy deal, dude.

There are like a million card specials out there where you can get the same 0% APR for 6 months on purchases AND balance transfers, then have a fixed 9.99% APR after that. Also, with a much higher credit line.

14.99% is high.

 

[FrustratedUser]

The point of issuing CC to people is to make money, right.
No company would lend someone money for free, so the catch with ALL credit cards is the hight APR.

Elementary my dear Watson.

 

[kranky]

Spooner, I think he's after the rewards points, and since he pays in full every month the APR doesn't matter.

 

[icecube]

That's exactly right...for me, if there's no annual fee, there's really no catch as I will be paying in full each and every month.

They can charge me a 90% APR for all I care...they're never going to see any of it...



They did offer the 0% balance transfer, but I have no balance to transfer. I was surprised they only gave me a credit line of $2k. I have 10k through Discover and I think the same on my Corporate AMEX card through work.

Also, I've noticed a no annual fee 2% cash back credit card over on the HeavyWallet Finance forum...may be a better deal than diluted points with AMEX blue...

Main reason I'm looking into this is because I dropped my Membership Rewards on my Corporate card as I've stopped racking up $25,000 in airfare per year like I used to...