Pennywise
No Limit Credit Card
by: Sahil | last updated: November 06, 2009
Category: Premium Credit Cards | Tags: No limit credit card, no credit limit, high end cards, premium cards
Category: Premium Credit Cards | Tags: No limit credit card, no credit limit, high end cards, premium cards
A no-limit credit card, as the name itself suggests is one that doesn’t have an upper limit. These cards are used by people in the higher echelons of society with an excellent credit rating. The most famous no-limit card is the American Express card which offers no limits to the amount of credit available. In the beginning American Express or Amex made their customers pay in full on or before the due date. However, they have become more flexible in this regards in recent times.
There are advantages as well as disadvantages to using a no-limit credit card since you can meet huge expenditure needs and on the other hand end up overspending. It becomes important to use such cards in a wise manner since it will affect your credit score if you do not make timely payments. The credit card company may also put a limit on your card if you fail to pay the balance in full on or before the due date.
A disadvantage of no-limit credit card that is often overlooked is that the credit card company may report seemingly negative information to the credit bureaus. This may happen if you spend only a little amount of money using the card.
For example if you spend only $200 on the card then the credit limit that will be reported will be $200. A disadvantage of this is that the ratio of the balance to the available credit plays an important part n calculating your credit score. In a no-limit credit card the amount spent may be considered equal to the credit limit which in turn will decrease your score.
A no-limit credit card is good for people who have an impeccable credit history and a high credit score. Others who may benefit from such cards are small business entrepreneurs who may need funds for an emergency on a regular basis. People who have substantial income and will continue to thrive financially may consider using such cards. Usually such cards also accompany other perks and benefits such as concierge services and upgraded travel and accommodation.
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