AmEx Essential Credit Card Review

There is a new card from AmEx: AmEx Essential Credit Card. It has no annual fee but also no cash back from purchase. You can enjoy a low 8.99% interest rate on purchases and cash advances. It can also provide Purchase Protection, Extended Warranty and Travel Accident Insurance.

If you choose to transfer your other credit card balances to this American Express card, you can get a even lower rate 1.99% for the first 6 months. Balance Transfer option is only available at time of online application. You can transfer 50% of your assigned credit limit, up to a maximum of $7,500, whichever is less (Subject to approval).

There are some rules on the interest rates.

• For the first 6 months, the 1.99% rate will increase 8.99% if you have 1 Missed Payment.
• After the first 6 months, the interest rate will increase to the Standard Rate of 23.99% for the next 12 billing periods if in any 12 month period you have 2 separate Missed Payments.
• Interest rate will increase to the Basic Rate of 26.99% for the next 12 billing periods if in any 12 month period you have 1 Missed Payment that remains unpaid for 2 or more consecutive billing periods or if you have 3 or more separate Missed Payments.

“Missed Payment” means AmEx did not receive the minimum monthly payment by the date of the next billing statement.

I should say that this is a OK credit card if you want to use the 1.99% special rate in the first 6 months. Overall, this card is not attractive to me.