American Express Plum Card
- February 2, 2020
- 4 min read
- 1217 reads
So you’re at the American Express login screen when something catches your eye- the American Express Plum Card. But what is it, and how can it help you? Don’t want to talk to American Express customer service to find out?
Then enjoy today’s article where we explain the perks, nuts, and bolts to what makes this card a great choice for some.
A Card Meant for Prudent Business Owners
The most important thing to note right off the bat is that the Plum Card is a charge card and not a credit card; that being said, it is what’s considered a flexible charge card. Charge cards still hold their appeal, with American Express being the only issuer of them in the United States.
The reason why they still hold their appeal, aside from a lot of their competitive perks, is that charge cards prevent mistakes from happening within your business.
If you have all your expenses on your charge card, and not a credit card, it prevents a business that typically is on the small to medium-sized from overextending their finances. When a charge card has a due date, you are expected to pay it off in full, but you can read more about the differences between charge cards and credit cards here.
A Charge Card that Allows a Balance!
What makes the American Express Plum Card so unique, is its standout feature that allows a business to carry a balance interest-free for 60 days! American Express has been vocal about their idea to experiment with hybrid charge card models, and the Plum has been one of the flagships that have helped fuel their vision to give consumers options.
In the case of the Plum Card, you are allowed to carry a balance with no set spending limit, something we will discuss momentarily, for 60 days interest-free.
The Benefits of The Plum Card
American Express Plum Card as we mentioned earlier, does have several benefits that make it more distinct and obvious value-wise to business owners. Like other charge cards offered by American Express, there is no preset spending limit. However, no preset spending limit does not mean unlimited limit.
How American Express is thought to determine your initial ceiling by looking at: your income, your credit score, how much you spend and pay off in full on your first cycle then multiplying that limit by 3-4x.
So say you spend $4,000 your first month, if you multiple that by 3x, you should be able to charge $12,000 the very next month without any issues. That being said, in the cases where you are not approved for spending on a charge card by American Express, their customer service can help you most of the time, while sometimes proof of funds may be necessary beforehand for some larger bills.
That out of the way, here are the other benefits:
- 1.5% Discount Applied to All Purchases*
- 60 Day No Interest Charge
- Free Employee Cards
- 5% Discount or Bonus Membership Rewards points with purchases from partners like Hertz, FedEx, Hyatt, Hewlett-Packard and more.
More Information on The 60 Day No Interest Charge & Other Features
If your business is frequently surviving off of large monthly retainer commissions or other unique agreements, a 60-day no-interest period is extremely enticing to a lot of business owners. With this perk, you simply make a minimum payment of at least 10% of your total amount owed when you receive your statement, and from there you have 60 day interest-free grace period with no late fees to make your payment in full.
The other benefit that stands out is the 1.5% discount on all purchases. We can’t call this perk “cashback” since it’s factored in and redeemed automatically for you every month, but this 1.5% discount is also actually considered a conditional benefit- Meaning you won’t always receive the discount if you fail to make the payment 10 days within the closing date. So late payments will not receive the 1.5% off.
Plum Card vs Black Card
Some confusion has been going on online between people new to the world of finance. Funny enough, most people are wondering what the differences are between the Plum Card and the Amex Black Card. Aside from both cards being charge cards, the differences couldn’t be any bigger.
The America Express Black Card generally requires flawless credit, can be used for business and personal, allegedly reserved for those who spend hundreds of thousands a year on their American Express cards, and has a whopping $2,500 annual fee.
Plum card, by comparison, is a charge card that allows a 60 day grace period, is a plastic card (yes some people wonder if the Plum Card is plastic or metal), probably is a better fit for smaller businesses, and does not have reward points.
Credit Needed for Approval
Based on popular experiences, approval for the card seems to require a score of 700 or better. There are reports of people with less than 700 getting approved for the card, but the general consensus as of now is that your best shot should be around the 700 range.
American Express Plum Card seems like a perfect fit for employers who want a business charge card that allows them 60 days interest-free. There are American Express credit cards available, however there are better alternatives for business owners like credit cards by Chase, or Capital One, if you are looking for a credit card.