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American Express Essential Credit Card, 12 Months 0% BT (No Fee), No Annual Fee, $50 Credit with $500 Spend

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American Express Essential Credit Card, 12 Months 0% BT (No Fee), No Annual Fee, $50 Credit with $500 Spend
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drup on 21/02/2016 - 11:24 americanexpress.com (3395 clicks)
Last edited 22/04/2016 - 17:03 by 2 other users

Interest free balance transfer offer from American Express.

  • No BT fee
  • No Annual Fee
  • Great for people who just want to pay off some debt interest free.

note This is not to be mixed up with American Express cards from Banks (eg CBA, NAB, ANZ) this is directly with AE themselves.

DETAILS

  • Receive a $50 credit when you apply online, are approved and spend $500 on your new1 Card within the first 2 months of Card Membership
    $0 annual fee
  • Earn up to 1 Membership Rewards® point for every $1 spent
  • Transfer your points to a choice of 8 airline rewards partner programs
  • Smartphone Screen Insurance of up to $500 for screen repairs to your Smartphone when you pay for your phone or contract with your Essential Credit Card
  • 0% p.a. on balance transfers for the first 12 months
  • Enjoy a low interest rate of 14.99% p.a. on purchases

Referral Links

Business Explorer Card: random (3)

Referrer: 40,000 Reward Points

Centurion Personal Charge Card: random (7)

Referee gets 200,000 MR points. Referrer gets 150,000 MR points.

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Financial American Express Credit Card Interest Free

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closed Comments

  • Truthbe on 21/02/2016 - 11:48

    I've never owned a credit card as I was taught to only spend money I own but damn, 14.99% p.a. interest on purchases sounds crazy. Who would?

    • shadow131 on 21/02/2016 - 11:59
      +5

      I've never owned one too. But is the 14.99% only for balances beyond 55 days?

      • Truthbe on 21/02/2016 - 12:05

        Ok that sounds a lot better, I can't find the clause but I'll take your word on it

        • Dollarsandsense on 22/02/2016 - 10:07
          +2

          Note the following scenario to be careful of with credit cards:

          1.) You spend $2,000 on your credit card on March 1st.
          2.) You receive a credit card statement March 31st showing $2,000 due by April 15th to avoid any interest
          3.) You pay $1,999 by the due date (i.e. anything less than the full balance)
          4.) Because you didn't pay everything off you are actually charged interest on the full $2,000 (not just the remaining $1)

          This happened to me when I was new to credit cards 10 years ago, may have changed but I doubt it has…

        • JohnHowardsEyebrows on 22/02/2016 - 10:10
          +4

          @Dollarsandsense: Hasn't changed. You have to play their game perfectly to beat them.

    • Seaword on 21/02/2016 - 12:18
      +3

      They have their uses.

    • Make it so on 21/02/2016 - 12:42
      +22

      Agree with your principles, but if you channel your spending through it and pay off last minute, you can save on interest elsewhere, e.g. your mortgage. And you get points. You can make $100s a year this way.

      • Truthbe on 21/02/2016 - 13:18
        +1

        Points are a positive, you're right - the only problem is if ever the case something goes wrong and you can't pay on time that's when things go downhill, fast

        If nothing ever goes wrong then you're golden

        • King Steuart on 21/02/2016 - 17:50
          +2

          Im golden. Had my current amex for 2 years so far, they've paid me about $2500 in qantas points to have it. 10/10 will keep using.

        • Diji1 on 21/02/2016 - 18:44
          +1

          @Putnum: Yes indeed.

          Does it give you pause for thought as to why you are recieving $2500?

        • King Steuart on 21/02/2016 - 19:18
          +2

          @Diji1:

          Yeah i know they use my transaction history for market research and whatnot. Not really fussed.

          Do you pay cash for everything?

        • dazweeja on 21/02/2016 - 19:55
          +1

          @Diji1:

          I would gladly exchange my transaction history for $2500.

      • nix1016 on 21/02/2016 - 21:41

        I've never managed to figure out how to use a credit card to pay my mortgage (though I haven't really looked hard enough), but don't they charge you a fee for cash advance if you intend to use it this way?

        • Make it so on 21/02/2016 - 22:07
          +4

          That's not how it works; if you have to pay a $1,000 bill and you pay it from your mortgage redraw, you pay interest on the money you took out (~4.5%/year, ~$3.80/month). Pay from your credit card, and your CC bill isn't due for about 1.5 month after. You just saved $6 of interest on that $1,000 by keeping money in your mortgage longer.

        • nix1016 on 21/02/2016 - 22:27

          @Make it so:
          Oh right, that makes sense. I always thought that people were transferring the $$ directly to the balance of their mortgage.

    • eecan on 21/02/2016 - 13:45
      +22

      Spending money you own via credit card is better than spending money you own using cash. Only caveat is self control.

        • eecan on 21/02/2016 - 15:48
          +2

          I don't think that's an issue at all. The vast majority if not all credit cards have an interest free term. Anyone who can apply for a credit card with any major bank in Australia can get one with interest free days.

          And yes, this does involve paying off the full balance every month which is superior to paying on the transaction date for the customer. 'Spending money you own' would involve paying off the balance in full otherwise you wouldn't be spending money you own.

        • blighst on 21/02/2016 - 15:55
          +2

          From their website:

          Interest-free period: Up to 55 days

          As long as you can manage your money then it's a great deal if you don't have an AMEX card.

        • DKC on 22/02/2016 - 07:23
          +1

          You should learn more about Credit Cards. I have never seen one that charges interest from day 1 (except for cash advances).

          I pay for as much as possible with CC, and have taken all my Business Class flights using points. Never bought a business class ticket.

      • Diji1 on 21/02/2016 - 18:47
        -3

        Only caveat is self control.

        That's a pretty big caveat given the amount of evidence that exists to show credit card users are not in control - whilst they're suffering the delusion that they are.

        No one's losing money with credit cards and they're getting paid money for not losing money. Does this sound a bit wierd?

        • JohnHowardsEyebrows on 21/02/2016 - 20:08
          +2

          The group of credit card users who don't pay off their balance in full each month are paying for the winners. While it's not nice to know the banks are screwing somebody that allows us to win, we are still after all just extracting stuff off the banks (I've probably cost the banks and Amex close to $10k in the past few years).

        • jkim on 22/02/2016 - 12:15

          @JohnHowardsEyebrows:
          Wrong.

          The "winners" pay for themselves, from merchant services fee.
          The "losers" pay for themselves with increased self-insurance for default.
          The "losers" are those that are most likely to default.
          CC companies and banks don't want people who need to pay interest (high risk volatile income).
          They want only the "winners" (low risk stable income).

          Edit: btw, AMEX make around (3.5% msf - 1.2% reward to you) = 2.3% of your transaction amount.
          The high msf is why many merchants don't want to accept AMEX.

    • donotuse on 21/02/2016 - 14:57
      +10

      Huh?

      I have been using CCs all the time, and never had to pay any interest.

      I use CCs as a Liquidity Facility, not as Debt, because I always pay full on time. I essentially have 55 days of free money (0% interest) which I'd rather keep in my offset account than pay my purchases with cash/debit card. And I'm "using my own money" because I always pay in full on time. And I set and forget with direct debit.

    • ksj 007 on 21/02/2016 - 18:27
      +2

      Good principle, and I also believe and practice it. But I also have credit cards. You should look at the credit card as a tool to manage your cashflow and earn some money/points as I and others have done. They key to taking advantage of this tool is self control and discipline, I.e. spend only the amount you can easily pay back and pay back on time to avoid fees and interests.

    • tsunamisurfer on 21/02/2016 - 20:18
      +1

      I dislike how banks have charged us interest rates of mid to high teens regardless of economic environment.

      You can get them back a little by playing their game.

      I have a Citibank Signature for about 2 years now.

      In that time, I have purchased about 99k worth through the card, and paid Citibank about $11 (I forgot to clear the balance once and was slugged $10 late fee and $1 interest).

      Now I have enough points for 1.5 trips to, say, Singapore….costing me $11.

      • JohnHowardsEyebrows on 21/02/2016 - 20:19
        +1

        And you'll be able to use the lounges in Changi for free.

      • jenkemjunkie on 22/02/2016 - 09:41

        I would have rang the bank and demanded them refund the late fee. Did it with NAB. It's hard keeping track of all the cards haha. Igor the refund

    • crazym0nkey on 08/06/2016 - 08:45

      edit (deleted): just realized there's already that many replies with same mentality.

  • cpho on 21/02/2016 - 11:54
    +15

    Hasn't this card been around for a while? I remember a deal was posted a few months ago about the same card.
    I'm pretty sure this is just the normal thing. There's nothing special here

  • rexii2300 on 21/02/2016 - 12:08
    +3

    got it just for the Amex offers!

    • Ausperleo on 21/02/2016 - 12:11

      Same here, got mine 2 weeks ago, just in time for WW and DM offers.

  • Ausperleo on 21/02/2016 - 12:12
    +1

    Receive a $50 credit1 when you apply online, are approved and spend $500 on your new1 Card within the first 2 months of Card Membership

    • sween64 on 21/02/2016 - 15:32

      I think that should be in the title.

  • Neoika on 21/02/2016 - 12:38

    BTW,how many AMEX issued cards you can have as a main cardholder?I remember someone says the max is 2 cards.

    • qtmai on 21/02/2016 - 12:52
      +1

      it should be 2 credit cards and 1 charge card

      • Neoika on 21/02/2016 - 13:52

        Then I still prefer to have Velocity and Qantas basic ones as both generate bonus referral points while this AMEX essentials card does not.Correct me if I'm wrong.

        • qtmai on 21/02/2016 - 15:59
          +1

          I don't think that the essential card generate bonus referral at all. Also, the Membership program with the essential card is only Membership Rewards Gateway not Membership Rewards Ascent, therefore the transfer rate is only 0.75 per $1.
          It's still great for $0 annual fee.

  • coldazure on 21/02/2016 - 12:40

    Does anybody know, from a membership points/frequent flyer points perspective, how does this card compare against the Qantas Discovery card that AE offers that is also $0 annual fee?

    Basically, does the points for those 8 other airlines stack up better than Qantas?

    Sorry if question is a bit generic. I'm just curious if I should bother given I have the Discovery card.

    • Neoika on 21/02/2016 - 12:44

      This one is better as it is more flexible to use your points.

    • qtmai on 21/02/2016 - 12:56

      it all depends on which frequent flyer program you are saving for. You can only transfer to QFF if you have a AMEX Charge card.

    • Smigit on 21/02/2016 - 12:59
      +3

      For flights I recommend looking at the Platinum Edge. It's $200 a year but includes a return flight in that cost and the reward schemes very appealing imho (3 points at supermarkets per dollar spent, 2 points for petrol and 1 point elsewhere).

      Not free, but if you want points for flying and travel domestically it's great value.

  • Wiser on 21/02/2016 - 12:41

    If you do BT and then spend $500 on card you are trapped.
    14.99% interest until you pay it off in full for what ever you spend on card.

    • vger74656 on 21/02/2016 - 12:58

      This. I got done in my stupid youth on this little trap. If you use this card for BT, shred it up the instant you get it…

    • qtmai on 21/02/2016 - 12:58
      +1

      you actually don't have to spend $500, unless you want $50 credit. Your BT shouldn't accrue interest after 12 months and 1 day. Just do BT and then hide the card and dont spend on it

      • vger74656 on 21/02/2016 - 12:59

        Ignore, just re-read post :)

    • No on 21/02/2016 - 13:06
      +1

      The laws changed a few years back, now when you make a payment it should be going against the highest interest part first (i.e the $500)

      • Ryballs on 21/02/2016 - 17:53

        That wasn't the case on a card I got around a year ago. Best to check with your credit card provider.

        • Maverick-au on 22/02/2016 - 01:38

          That wasn't the case on a card I got around a year ago. Best to check with your credit card provider.

          It's the LAW, credit card providers HAVE to abide by it. You might want to get someone to read all your contracts for you.

          The change took effect on the 1st of July 2012.

          http://learn.nab.com.au/where-do-credit-card-payments-go/

        • Ryballs on 22/02/2016 - 15:11

          @Maverick-au:

          Sorry I was just going by what they told me over the phone. Wasn't aware they were breaking the law. Thanks for the link.

    • Maverick-au on 21/02/2016 - 14:24
      +1

      If you do BT and then spend $500 on card you are trapped.
      14.99% interest until you pay it off in full for what ever you spend on card.

      Why post such misleading and incorrect information. Payments that you make come off the highest interest amounts that you owe and have done so for years.

    • Wiser on 21/02/2016 - 16:56

      My apologies.
      Seems Australian laws have changed.
      Highest inetrest amount is paid first.

      • TrailerTrash on 21/02/2016 - 17:08

        Thanks - good to know! Will try to get the $50 credit for $500 spend AND the BT period.

    • Helmutson on 23/02/2016 - 00:05

      I wouldn't choose this card if you want to do a balance transfer. The NAB Premium card offers 0% interest for 15 months on balance transfers AND 0% interest on purchases for 15 months. No need to worry about triggering interest by purchasing with the card accidentally.

  • darthsparrow on 21/02/2016 - 13:07
    +3

    Got this some time back. Wasn't planning on using the BT, but to use it for Apple Pay as it is one of the cards accepted. Also the $50 on $500 spend was a bonus.

    • itsfree on 22/02/2016 - 11:37
      +1

      Yeah Apple Pay is a major boon for me

  • kcyw on 21/02/2016 - 13:16

    $0 annual fee with rewards membership program is what I have been looking for. Sounds great. Thanks! 1 point for $1 spent is a great deal too. ($0.5 for utilities and gov)

  • [Deactivated] on 21/02/2016 - 13:30
    -4

    Sorry to say but Amex is not accepted in lots of places nor online. My past and recent travels have proven Amex is ****. So glad I had Visa and Mastercard for smooth and hassle free transactions.

    • Maverick-au on 21/02/2016 - 14:30
      +8

      Sorry to say but Amex is not accepted in lots of places nor online. My past and recent travels have proven Amex is ****. So glad I had Visa and Mastercard for smooth and hassle free transactions.

      What rubbish, plenty of places in Australia and especially overseas accept AMEX. Sorry to hear that the Bombay backpackers didn't accept AMEX but you should never travel with only one type of card and cards should be used to your advantage such means using them where you get the most benefit.

      • [Deactivated] on 21/02/2016 - 18:30

        Gee what a snobbish tone bordering racist. Bombay really?! What hole did you crawl out from? It's Mumbai. And you assumed I visited third world developing countries with your magic ball?

        Australia: Opal top-up, Immigration dept, JB Hifi, Chemist Warehouse, Aldi, etc

        Singapore: Singtel, 7-Eleven, Scoot, public hospitals, clinics, etc.

        Of course one has to travel with multitude source of funds. A traveller who doesn't do this is a fool and asking for trouble.

        • quarrymaster on 21/02/2016 - 19:22

          JB Hifi

          They do have a surcharge.

        • Maverick-au on 22/02/2016 - 01:33
          -1

          Gee what a snobbish tone bordering racist. Bombay really?! What hole did you crawl out from? It's Mumbai. And you assumed I visited third world developing countries with your magic ball?

          You're the one complaining about not being able to use AMEX. BTW Bombay is still used, the only people that get sensitive about it are some Indians.

          Australia: Opal top-up, Immigration dept, JB Hifi, Chemist Warehouse, Aldi, etc

          LOL so you're complaining that you can't use it for topping up PT, at a government department, a discount retailer (who does take it), a discount chemist and a discount supermarket.

          Singapore: Singtel, 7-Eleven, Scoot, public hospitals, clinics, etc.

          LOL so your extensive overseas travel consisted of Singapore where you couldn't use the cards with the local telco, to buy an icecream at a discount convenience store, to buy a ticket on a discount airline, and couldn't use it at the hospitals and clinics you frequented.

          Well that's all sorted then…. iluvcheapbargains is right, AMEX is totally useless because it can't be used at a few locations in Australia and Singapore. Let's ignore the hundreds of transactions that I made in 11 countries in Europe in 2014, the hundreds I made in 14 countries in 2015 and the hundreds more I'll make on the next trip.

        • FW190 on 22/02/2016 - 16:29
          +1

          Opal top-up

          check the "Shop Small" thread from last year, plenty of people had success recharging their Opal at effective 50% off ($10 off for $20 spent at designated businesses)

          Immigration dept

          no comment, never had anything to do with them, but I had no issues paying my car rego/license renewal with Amex at RTA/RMS

          JB Hifi

          as per below, they do, just with a surcharge

          Chemist Warehouse

          Priceline accepts it, and it is the cheapest place I could find for my regularly script

          Aldi

          and they charge a surcharge for Visa and MC, I don't see you complaining about that?

          anyway, for me, the places which accepts amex (w/o surcharge):

          Coles, Woolies, Harris Farm, Caltex, Shell, BP, 7-11, Big-W, K-Mart, Target, RTA/RMS, Maccas, KFC, Paypal, AMMI, GIO, BUPA, Myer, Dominos, Super Cheap Auto, Dick Smiths, Priceline, a heap of local and international online shops, the list goes on and on, heck, even my small local cafe accepts it (not that I would pay for a $4 coffee with my card)

          I even paid my council rates using my Amex (required a little work-around, gotta pay via PostPay)

          as you can see above, so maybe it is just you?

        • edgar28 on 04/03/2016 - 16:51

          @FW190:

          But postpay charges service fee on paypal option?

        • FW190 on 05/03/2016 - 07:51

          @edgar28:

          But postpay charges service fee on paypal option?

          I don't remember seeing any, but I have only ever used postpay to pay my council rates, not sure if others will charge a fee or not

        • edgar28 on 06/03/2016 - 11:52

          @FW190:
          yeah i tried it on council rates, it came with service charge fee. (same for direct visa payment anyway)

    • DrStinge on 21/02/2016 - 14:38
      +4

      Living in any decent sized city you'll have no issues with Amex. Yes in the regions you won't fare so well but Amex has done a lot in the past few years with their small businesses program to really bring out Amex support. The only issues I've had with Amex are the same issues whereby a Visa or Mastercard Credit card would of attracted a 2% surcharge anyway.

    • quarrymaster on 21/02/2016 - 15:27
      +4

      Sorry to say but Amex is not accepted in lots of places nor online.

      Guess you haven't been paying attention on OzBargain!

    • SteveBuscemi on 21/02/2016 - 16:44
      +4

      News to me since — everyday month-to-month expenses alone — all of my groceries (Woolworths/Coles/Costco), petrol, Paypal purchases, alcohol (BWS/Dans), food delivery (Menulog/Delivery Hero), hotels/flights (Expedia), streaming (Netflix,Stan, Spotify, Google and iTunes), private health insurance, gas/electricity, fast food, pharmaceuticals (Priceline) and transportation (ETag, Uber) all go on my Amex with no additional surcharge…

    • dazweeja on 21/02/2016 - 20:01
      +3

      You can use Amex with PayPal so it's very widely accepted online.

      • Member 0230 on 22/02/2016 - 09:59

        ☝︎ THIS ☝︎

        Where the options are "VISA, MC or PayPal", an AMEX card registered on PayPal really comes into its own.

      • JohnHowardsEyebrows on 22/02/2016 - 10:04

        In most instances. Some merchants have cottoned onto this/negotiated better deals with PayPal on the basis that PayPal won't accept Amex for the transaction. AirAsia is one such merchant.

  • fantacular on 21/02/2016 - 14:04
    +5

    free money!!

    does anyone know if you can get the balance transfer as a "cheque to self" ?? if so, and if you have a mortgage and the qualifying income then you should seriously consider doing this and putting it in your mortgage's offset account. i have done this with another bank and stuck $30k in the offset account for 20 months, will save me about $2,150 of interest.

    • amsaini15 on 21/02/2016 - 14:59
      +1

      I am wondering the same. Anybody has the answer?

    • qtmai on 21/02/2016 - 16:11
      +1

      I have been a customer with AMEX for a while now and has never heard of this option before. I think the only place that offers this is Citibank

      • jenkemjunkie on 21/02/2016 - 16:33
        +1

        You'd be suprised. I applied for a Virgin Credit card, they sent me one with a smaller limit than I wanted in the mail so I rang them and said straight up. "To be honest with you, I don't have any debt, I just wanted to take advantage and put the money in my investments, the other card would have been in positive territory, the amount you offered is not worth my time"

        They immediately offered me a cheque option with the limit I wanted. Originally I thought only citibank did it.

    • Diji1 on 21/02/2016 - 18:57

      free money!!

      Now why do you think any business would do that?

      A sane business would do it because it's expected that you will provide them with a higher amount of value and hence lose money.

      • jenkemjunkie on 21/02/2016 - 19:12

        I think in a majority of cases people are too financially irresponsible to be able to pay the balance and that's the scenario banks are hoping for. I get some pretty good offers sent to me in the mail now which is odd because I have never paid any interest or annual fees.

  • Jeeves48 on 21/02/2016 - 14:25
    +2

    Just put your Amex card as one of your Paypal cards. End of problem.

  • epicttiimm on 21/02/2016 - 15:17
    +1

    If you would rather more points per dollar and are travelling interstate at least once a year the Platinum Edge card is better since the annual fee pays for the return flight itself. Plus you get 15000 bonus points if you spend $500 (I think?) within the first 2 months

  • FutureTech on 21/02/2016 - 15:23

    Can you transfer the balance for unlimited times? I. E. Transfer the balance to another credit card at the end of the 12 months interest free period? Wouldn't this mean that you will never have to repay the debt?

    • itsMartin on 21/02/2016 - 16:24

      You have to make minimum payments on the debt, plus pay and balance transfer fees, plus you have to rely on continually being approved for credit cards at different banks, and assuming that there will be good balance transfer offers around when you need them.

      In short, if you're planning on avoiding paying, continual balance transfers will not assist you with that.

  • cnrmlj on 21/02/2016 - 15:35
    -6

    According to the amex site and listing above there is no interest free on this card. 14.99% from day 1 on purchases is not a deal no matter how many points you get. There are so so many better options around for credit cards. If there is interest free, then ok, but i can't see where it is. The other cards on the amex site clearly state they have 44 or 55 days interest free.

    • qtmai on 21/02/2016 - 16:08

      this card has a 55 days interest free period mate… I think people are using this for more interest free balance transfer

  • HelloKitty1 on 21/02/2016 - 15:52

    U just gave me an heartattack cnrmlj.. But yes there is def interest free period.. Check out this link… http://www.creditcardfinder.com.au/american-express-essentia…

  • ozy on 21/02/2016 - 16:05

    I Use my AMEX everyday nearly, only limitation I've ever found is Bpay payments cant be done, if anyone knows a way around this please reply.

    • dazweeja on 21/02/2016 - 20:04
      +1

      Not BPAY but if you add the card to your PayPal, it can be used with Post Billpay (https://paypaperbills.postbillpay.com.au) which is almost as common. Works with all my bills.

      • ozy on 21/02/2016 - 23:07

        You sir/mam are brilliant!
        My council rates thank you!!
        I've never used post bill pay before, I can't thank you enough!

      • edgar28 on 04/03/2016 - 16:52

        But postbillpay charges service fee on paypal option?

        • dazweeja on 05/03/2016 - 22:14

          I just checked a few of my recent transactions and there's no extra fees. I'm not aware of any that charge but maybe some billers do? All I can say is that none my billers do which is why I use this method whenever possible (through both the website and the app).

  • dd101 on 21/02/2016 - 16:06
    +4

    FYI Qantas discovery and/or Velocity express amex cards are also $0 annual fee cards, and offer the same - if not better perks. Also 0% balance transfers in the first 12 months.

    There are higher interest rates on these cards, however you really shouldn't be using an amex if you can't pay your account off on time. There's plenty of other lower rate credit cards out there, or even the 2% cashback debit cards from ING direct.

    • illumination on 21/02/2016 - 16:30
      +1

      Shouldn't be using any credit card, really, if you incur interest charges.

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