I pay CASH bro! By the time you pay that AMEX card off how do you think you save any money after that UNGODLY interest they charge??? Dude, the life of a computer today is around 3 years so you'd off it and upgrade for $400-$500 more ($500 for using it 3 years is pretty cheap because it offsets the cost of added memory or drives that didn't come stock) so who cares about that extra year? If it lasted that long it will last for a long time because the mean time before failures are usually 6 months to a year of a computer. And most likely in three years and 9 months they will have plenty of parts to swap out for that machine and they will just swap out the parts in it NOT give you a brand new one... and I really HOPE you didn't think... "a brand new one!"
You are loaded if you think that's going to happen after 3 years and 9 months he he...
Done ranting?
Ok...let's go back to Credit Card 101 and some extended warranty stuff.
1)Amex is a non-interest credit card. Yup...no interest. You HAVE TO PAY the balance IN FULL every month...or you lose your "points" and possibly lose your membership. Technically Amex is a "charge card" which is different than a credit card. Yes, Amex has created a few new credit cards in the past few years, but the traditional Amex that has been around for half a century is far more popular than their newer credit cards.
2)Amex offers the extended warranty on ANY (and EVERY) ITEM you buy (not services like car work) FREE OF CHARGE. This is one of the great perks of having an Amex. So they will help you out if you buy a tv or a watch or a doorknob. Yup.
3)The extended warranty that Amex offers is very simple...you contact them about what is broken, they quickly determine *IF* they want you to get a written estimate (which they will pay for also)...and then Amex decides if they want to pay for the REPAIR or pay for a REPLACEMENT. It's that easy. Most of the time when they choose to pay for a replacement, they simply credit the account back whatever you paid. So if I bought a $1000 tv and it broke and Amex decided it's not worth the money to REPAIR it, I will get a $1000 credit on my account. Pretty sweet. There is no magic formula for how they decide about repair vs. replace....Amex has it's own insurance carrier to pay for this program.
4)I have received numerous REPLACEMENT items from Amex...2 computers and a digital camera. Each computer was a few months past it's original 1-year warranty. Your mileage may vary. And if you write letters to your credit card company like you post here, I guarantee you'll get the shaft.
5)I agree that most computers only last a few years. That's not the point. The point is that I have an extra 1-full-year warranty. Period. In one of my examples of a computer breaking, it was a $600 machine...the repair (since it was out of warranty by a few months) was going to be just over $350 because, like every manufacturer in the world, Dell was going to charge me an arm and a leg to fix it. I wrote my letter to Amex, included all documentation, and nicely asked if I could just get the $600 instead...so that I didn't have to wait weeks for repair. Amex agreed and I had the $600 credit on my account within a few days of the approval.
So...hopefully this quick reply will inform you since you are clueless about Amex (interest rates), its Extended Warranty program, and the general reason of why to use the Amex Extended Warranty program. If you want to rant about PURCHASING and extended warranty FOR AN ADDITIONAL FEE from a RETAILER...go ahead and rant...I will probably agree with your rants.
I will never switch from Amex...the EW program itself has been fantastic not to mention the points program can really add up to some nice freebies.
-Eric