Do you have to pay off an American Express card every month?

The American Express minimum payment is the highest of:

• The interest charged on your statement, plus 1% of your new balance (excluding any overlimit amount, penalty fees, interest charges, or other plan balances).
• 2% of the new balance, excluding any overlimit amount, penalty fees, or other balances.
• $40 (or the full amount you owe if your balance is less than $40).… read full answer

Cardholders can also find their required minimum payment listed on their monthly account statement.

The American Express grace period for credit cards is at least 25 days after the closing date of each billing period. That means if you enter a new billing period without an existing balance and make charges on the card, you will have at least 25 days after that billing period closes before interest begins to accrue on those charges.… read full answer

Here’s where the American Express grace period doesn’t apply:

It is important to note that grace periods do not apply to certain balances. Cash advances and balance transfers will start accruing interest immediately, unless they are part of a 0% APR promotional offer. In that case, interest would not accrue until the promotional offer ends.

Here’s how the American Express grace period works:

• Length: 25 days or more
• When It Applies: You pay your bill on time and in full for at least two consecutive billing periods.
• What It Does: Gives you time to pay for purchases before interest charges kick in.
• When It Doesn’t Apply: Revolving balances, cash advances and balance transfers (excluding 0% promotions).

Grace periods are great because they essentially allow you to borrow money for free as long as you pay your bill in full and on time each month.

Here’s what happens with American Express cards with no preset spending limit:

American Express cards with no preset credit limit are different in that they must be paid in full every month. There are exceptions, though. American Express cards with no reset spending limit may allow you to carry a revolving balance after making select purchases.

This feature, named “Pay Over Time,” is granted on a case by case basis, and American Express will make it clear if your account is eligible. If you don’t pay the balance requested by its due date, your account can be charged interest and penalty fees, and be subject to cancellation.