AMEX no pre-set limit As most of you know, the AMEX no pre-set spending limit doesn't necessarily mean that you should go out and spend $20,000 right now unless that's what you normally spend. I read that you can figure out your limit by taking your average credit card balance in the last three months and multiplying this by 1.5 So if you have an average balance of $1,000 you should be approved for purchases up to $1,500. If you want to purchase something over $1,500 you should call AMEX ahead of time and let them know in order to avoid an embarrasing situation.
Re: AMEX no pre-set limit Better yet, AMEX should drop the "no preset spending limit" because it is false misrepresentation. Or they should add "no preset spending limit if you call us and we approve it".
Re: AMEX no pre-set limit Not sure where you got that formula of past 3 months spend times 1.5-that is not correct. There is no "accross the board" standard for all accounts. Each account is handeled individually. I average about 2-3K a month. Some months I have been up to 7-9K with unbilled charges and still had the previous month's balance of 3K--thus total spend limit over 10K when average is 2-3 K a month. Your formula would not explain how I could spend so much withou ever having to call in. Also, a co-worker here jsut got a pesonal card about 3 months ago. His first month spend was about $150, second month about $700, and this month he bought diamond ring for ocer $2,700 and has other purhcases making his total unbilled over $3,200. He has had no problems with approval. Again, your formula does not jive. Also, AMEX NEVER advertises the limit as "limitless" or spend all you want. They describe the no pre-set spending limit as based on your pesonal resources, credit report, and payment/spend history. However, 99% of poeple never read thier Cardmember agreement that they get with the card and fasley assume that no pre-set spending means spend whatever you want. I would rather have AMEX to call in to AMEX to approve a large purchase than have them set back and approve everything if someome stole my card and went on a shopping spree. I know that some people have had to call in, but this number is rare compared to the total cards in force and the number of transactions that come through for approval. During the 3 years that I have had my charge card, I never had to call in on a large purchase that is outside my spending pattern
Re: AMEX no pre-set limit When I spend $3500 on my laptop Amex rejected it. I had to call them up to get it to go through. They were really freaked out because my average bill was about $2k/mo at the time. Now it is about $3k/mo, but I have not have any big ticket items like a laptop again for a looong time.
Re: AMEX no pre-set limit I actually got the formula from someone's comments on a credit card review site. Oh well, I guess it may not be that accurate after all. I don't have an AMEX charge card so I was wondering, does AMEX tell you how much you can spend ahead of time? How do they know about your personal resources other than the income info. you give when you apply for the card?
Re: AMEX no pre-set limit I beg to differ. I have watched AMEX commericals for over a decade stating "NO PRESET SPENDING LIMITS". I never saw any "certain restrictions apply", and I certainly don't have a card consumer disclosure in front of me while I watch the commercial. Maybe the commercials have changed now, but I never pay much attention anymore. This is just a statement of fact, and I have nothing against AmEx. I will probably apply for one when my scores improve..lol.
Re: AMEX no pre-set limit Mike, you have a good point. However, I think that they have fine white print when they talk about no pre-set limit. What is important is that it is explained in the agreement, and by signing and using the card, you agree to that. Junior Member, Sorry to hear that you had to call in on your laptop--that is weird based on what your spending pattern was. With that purchase though, you should have no problems in the future. Personal resources basically is your income that you state on your application
Re: AMEX no pre-set limit If the personal resources are based on what was placed on the application, then what happens if someone's income increases later? Amex won't know.
