Based on the apparent confusion of some commenters in the “On The Road” post, I figure this may help some people out.
Apparently people that signed up for the Amex Business Platinum card during the $250 cash back promo haven’t yet been charged the $300 annual fee.
I know I wasn’t, and at least 2 other people haven’t been as well.
Normally a credit card with an annual fee will bill you that fee in the first 2 statements of the card.
Yossi asked in the comments,
“How do you know that when you cancel(the amex plat.) they wont charge you for all the time you had the card??”
I may have never fully explained this, which is an oversight on my part.
When you sign up for a card with an annual fee, or if you sign up for a card which is free for the first year, you are never forced to pay the annual fee.
As long as you didn’t pay the statement with the annual fee charge on it you can call up the credit card and tell them that you do not agree to pay the annual fee.
One of two things will happen, either they will tell you that you may continue using the card for another year for free, or that you must cancel the card.
However, they will not and cannot force you to pay the annual fee!
In the case of the -$250 Amex Platinum, you can request the $250 back as a check, enjoy all of the amazing benefits for the year, and whenever they charge you the fee, just cancel the card!
So you never have to worry about cancelling a card before 12 months are up-just monitor your statements for the charge!(Or better yet, follow my strategy for cancelling cards in the knowledgebase)
Also of note, many companies, including AMEX will pro-rate the annual fee even if you’ve already paid it. So if a card has a $120 fee, but you cancel it 2 months after paying the fee, they will refund the $100.
I know Chase will not pro-rate, I’m not sure about other companies-feel free to comment if you have first-hand experience with another company.