Understanding Credit Cards better

Recently I had a chance to get my hands on the American Express Gold credit card. Many of my friends told me that this card company does not issue cards to everyone easily on the other hand it also very difficult to maintain the card.

This somehow raised curiosity to know the details in depth like terms and conditions, fees etc. So I went the TOS sheet provided to me but was able to make nothing out of it.

Then called their customer care (the numbers are mentioned on the back side of card). The associate who picked up the call was very polite and answered all my queries without any hesitation or intention to hide the reality.

So, please do find my conversation in QA format (question and answer format).

What are the yearly charges for this card?

For American Express gold card the charges would be Rs. 2200 per annum which varies from card to card.

Are there any sub divisions in American Express gold card?

Yes, there are two options one is NFTO and other one is FTO (Non – Frequent flyer option and frequent flyer option).

What if I have fully utilized the card and would like to make few emergency transactions?

Although we do not encourage such transaction which surpasses your assigned credit limit. But in case of emergency the system sometimes allow transactions to go above limit assigned.

Is there is any fees for such kind of transactions

Yes, we charge Rs 500 for transactions made above assigned credit limit.

How do you collect that amount?

As mentioned earlier such kind of option to be utilized in case of emergency only and coming to the billing part.

 
Total Credit limit of assigned . Rs.1,00,000
Value of transactions made in a month Rs 1,50,000
Total limit exceeded Rs 50,000
Total Outstanding amount Rs. 1, 00,000 + 50,000 + 500 (see above)
Minimum payment for the month Rs. 10,000 (10% of 1, 00,000) + Rs. 50,000 (which will come under immediate payment) + Rs. 500
Fictitious figure of 10% of total outstanding amount would come to Rs. 10,000

What will happen in case of I fail to pay the amount?

In this case you have to pay interest charges which will start incurring from date to default to date of settlement and can also result in suspension of services provided.

Do you collect or send reports to CIBIL?

We conduct our own credit history checks and collect data from other reliable sources which we cannot disclose.

How is interest charged on outstanding amount?

   
Total Credit limit of assigned . Rs.1,00,000
Value of transactions made in a month Rs 1,00,000
Interest would be charged on billed outstanding amount plus current unbilled amount Rs 45,000 + Rs 50,000

We would also like to bring to your notice, until and unless you pay all of your dues reward points eligible for outstanding amount will not be credited in your account,

Is it legal to charge fee above the bill amount for using this card?

Such kind fees in not at all legal, if you find establishments trying impose such transaction fees. Then we request you to please do call us before agreeing to such fees. Our Merchant team will look after such matters.

If I want to go for limit enhancement is it possible?

Yes, if you have good credit terms with us, you can make a request regarding same which we will forward to concern department and they will come to you after reviewing your request.

Is it possible to see my unbilled charges online?

Yes, you can login into our official website to check your credit card statement / unbilled charges/ reward points status / redemption.

If I find some charges which were not made by me what should I do?

In that we request you to please call to get the charges disputed. If they are unbilled we can try to drop those charges and if they have already billed, then we would require the proper documentation from your side, so that we can research on your behalf.

After having such a long conversation with the representative, it was like I am really carrying a pet elephant in my valet. But after seeing the customer services, I came to a conclusion that upon using credit card wisely would make the consumer the real winner.

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