American Express Pre-Set Spending Limit
Author: ajb
Posted: Sun Jul 09, 2006 6:21 pm
Post subject: AMEX pre-set spending limit -- clarified.
I've been reading a lot of threads about American Express and their "no preset spending limit" mantra that they affix to their charge cards, and I just wanted to clarify this by giving an example from my experience as a card member.
I have been an AMEX Platinum card member for the past 2 months, before that I was a gold rewards member for 6 months. I was attracted to AMEX because of the idea of a charge card (pay back the balance each month), and the rewards program with AMEX being one of the most expansive and generous out there. When I received my Gold Card, I was planning on putting a rather large grad school tuition balance on it (about 25k), and I figured I would call AMEX to check it out before I went in to charge it. Well, as it happens the spending limit is a bit more complex. As outlined in the fine print from their website:
"Purchases are approved based on a variety of factors including account history, credit record, and personal resources."
which applies to the total amount of an individual charge, NOT the combined total balance of charges like traditional credit cards.
They told me that because my history with AMEX was not established, I needed to prepay a portion of it. I wanted to get the rewards points for this entire purchase, so I wire transferred them about 16k and was given 9k credit for the purchase.
After that, I kept spending on the card, and by the end of the month I had spent about 28k. This was all budgeted, so of course I payed it off before it was due, but the point is that preset spending limits are seemingly limitless if you have good credit history, have an income, and only make maximum purchases of about 2k at a time.
So basically, think of it this way. On an BOA credit card with a $6,000 limit, you could put 2 charges, one for 4,000, and one for 1,999 and max it out. What does BOA care, you know your limit. AMEX, on the other hand, seems to put it all on dependability. I could spend upwards of 10k a month, but as long as I did not make huge individual purchases, they would not cap me.
I can see this as a big problem for people who don't have militant self-discipline, because you can spend obscene amounts as long as they aren't suspicious purchases. I live in CA, and went on a trip to Boston where I spent more than 6k that month. I never got a call from AMEX, even though the purchases were completely out of my normal habits and tastes (yeah, my girlfriend lives in Boston), so it could seem like some Boston gal got my card and went on a shopping spree. Watch out people. They put more trust in us than I thought possible.
-I'm a first time poster, but I've been reading the forums for a while. I hope to contribute more in the future!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sun Jul 09, 2006 7:54 pm
Post subject:
I ONLY HAVE AMEX "CREDIT" CARDS
STATED LIMITS
I don't want AMEX "CHARGE" CARDS
They have an "EXPOSURE LIMIT"
It can change from time to time
Even if you ask what it is and have not reached that amount you can still be DENIED AT POS
It would be so nice if you were out with the IN-LAWS and were buying dinner and your GOLD "CHARGE" CARD WAS DENIED FOR UNDER $100
or
EVEN AT McDONALDS BUYING HAPPY MEALS FOR THE KIDS AND SPENDING UNDER $20 AND STILL GET DENIED
I would rather have a $20,000 "CREDIT LIMIT" BLUE than a "MAYBE" $20,000 GOLD "CHARGE" CARD
Author: ajb
Posted: Sun Jul 09, 2006 8:05 pm
Post subject: American Express Pre-Set Spending Limit
Hi mouse,
I have heard about what you are saying. I know of people getting denied. It also happened to me when buying a pair of sunglasses. It took a call in fron of the cashier which took a total off 1.5 minutes, but I got it to go through.
I don't want the blue "credit" cards because they don't offer benefits that my Platinum "charge" card does. I travel regularly, and I use the perks that the platinum card offers that blue (or even blue air) doesn't hold a candle to (free airport club access, compulsory upgrades/perks at hotels, airlines, cruises, premium rental car benefits).
I really could care less about having a "definite" limit. AMEX has always been fair with me, and in fact gone out of their way to assist me if the smallest provblem arises. I do think you have a point though. They should be MUCH more clear with the "no preset limit" system.
In my opinion, blue is good for generalist usage, platinum is good if you travel a lot. I see no use for the card unless you travel.
Author: ajb
Posted: Sun Jul 09, 2006 8:10 pm
Post subject: American Express Pre-Set Spending Limit
Almost forgot..
Again, blue is revolving balance credit, so I don't want that. I credit a lot of my discipline to the 8 months with my AMEX charge cards. I will never use a credit card again unless I have no cash, and I have to use a MC (in which case I would use a debit card).
I have come around to the philosophy that carrying a balance is only apt for bank loans/mortgages. I use AMEX because I match what I spend to what is in my bank account. So no worries EVER about spending what I don''t have, and no ability to carry the balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sun Jul 09, 2006 6:21 pm
Post subject: AMEX pre-set spending limit -- clarified.
I've been reading a lot of threads about American Express and their "no preset spending limit" mantra that they affix to their charge cards, and I just wanted to clarify this by giving an example from my experience as a card member.
I have been an AMEX Platinum card member for the past 2 months, before that I was a gold rewards member for 6 months. I was attracted to AMEX because of the idea of a charge card (pay back the balance each month), and the rewards program with AMEX being one of the most expansive and generous out there. When I received my Gold Card, I was planning on putting a rather large grad school tuition balance on it (about 25k), and I figured I would call AMEX to check it out before I went in to charge it. Well, as it happens the spending limit is a bit more complex. As outlined in the fine print from their website:
"Purchases are approved based on a variety of factors including account history, credit record, and personal resources."
which applies to the total amount of an individual charge, NOT the combined total balance of charges like traditional credit cards.
They told me that because my history with AMEX was not established, I needed to prepay a portion of it. I wanted to get the rewards points for this entire purchase, so I wire transferred them about 16k and was given 9k credit for the purchase.
After that, I kept spending on the card, and by the end of the month I had spent about 28k. This was all budgeted, so of course I payed it off before it was due, but the point is that preset spending limits are seemingly limitless if you have good credit history, have an income, and only make maximum purchases of about 2k at a time.
So basically, think of it this way. On an BOA credit card with a $6,000 limit, you could put 2 charges, one for 4,000, and one for 1,999 and max it out. What does BOA care, you know your limit. AMEX, on the other hand, seems to put it all on dependability. I could spend upwards of 10k a month, but as long as I did not make huge individual purchases, they would not cap me.
I can see this as a big problem for people who don't have militant self-discipline, because you can spend obscene amounts as long as they aren't suspicious purchases. I live in CA, and went on a trip to Boston where I spent more than 6k that month. I never got a call from AMEX, even though the purchases were completely out of my normal habits and tastes (yeah, my girlfriend lives in Boston), so it could seem like some Boston gal got my card and went on a shopping spree. Watch out people. They put more trust in us than I thought possible.
-I'm a first time poster, but I've been reading the forums for a while. I hope to contribute more in the future!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Sun Jul 09, 2006 7:54 pm
Post subject:
I ONLY HAVE AMEX "CREDIT" CARDS
STATED LIMITS
I don't want AMEX "CHARGE" CARDS
They have an "EXPOSURE LIMIT"
It can change from time to time
Even if you ask what it is and have not reached that amount you can still be DENIED AT POS
It would be so nice if you were out with the IN-LAWS and were buying dinner and your GOLD "CHARGE" CARD WAS DENIED FOR UNDER $100
or
EVEN AT McDONALDS BUYING HAPPY MEALS FOR THE KIDS AND SPENDING UNDER $20 AND STILL GET DENIED
I would rather have a $20,000 "CREDIT LIMIT" BLUE than a "MAYBE" $20,000 GOLD "CHARGE" CARD
Author: ajb
Posted: Sun Jul 09, 2006 8:05 pm
Post subject: American Express Pre-Set Spending Limit
Hi mouse,
I have heard about what you are saying. I know of people getting denied. It also happened to me when buying a pair of sunglasses. It took a call in fron of the cashier which took a total off 1.5 minutes, but I got it to go through.
I don't want the blue "credit" cards because they don't offer benefits that my Platinum "charge" card does. I travel regularly, and I use the perks that the platinum card offers that blue (or even blue air) doesn't hold a candle to (free airport club access, compulsory upgrades/perks at hotels, airlines, cruises, premium rental car benefits).
I really could care less about having a "definite" limit. AMEX has always been fair with me, and in fact gone out of their way to assist me if the smallest provblem arises. I do think you have a point though. They should be MUCH more clear with the "no preset limit" system.
In my opinion, blue is good for generalist usage, platinum is good if you travel a lot. I see no use for the card unless you travel.
Author: ajb
Posted: Sun Jul 09, 2006 8:10 pm
Post subject: American Express Pre-Set Spending Limit
Almost forgot..
Again, blue is revolving balance credit, so I don't want that. I credit a lot of my discipline to the 8 months with my AMEX charge cards. I will never use a credit card again unless I have no cash, and I have to use a MC (in which case I would use a debit card).
I have come around to the philosophy that carrying a balance is only apt for bank loans/mortgages. I use AMEX because I match what I spend to what is in my bank account. So no worries EVER about spending what I don''t have, and no ability to carry the balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 7:37 PM
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