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Contributor
fairclok
Posts: 79
Registered: ‎10-03-2012

American Express and Authorized User - Spending Limit ????? (and they back-dated me)

Hi everyone.

 

My brother recently added me as an Authorized User on his Amex Platinum as I've come a long way in rebuilding my credit.     

 

1.)   They happily backdated me to 1996 (i previously had a card I opened 1996, but closed in 2005), so I should see an improvement in my AAoA

 

My question is related to spending limits. 

 

2.)  I'm aware that if no spending limit is associated with the card then there is no positive or negative impact on my Utilization Rate - at least that's what I think I have learned on this site.   is this correct?

 

3.)  If we set a spending limit on just my card to something like $6,000, will the card then be included in my Utilization Rate?    or does Amex not report Spending Limit to the CRAs?

 

Thanks in advance for your help.


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Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: American Express and Authorized User - Spending Limit ????? (and they back-dated me)


fairclok wrote:

Hi everyone.

 

My brother recently added me as an Authorized User on his Amex Platinum as I've come a long way in rebuilding my credit.     

 

1.)   They happily backdated me to 1996 (i previously had a card I opened 1996, but closed in 2005), so I should see an improvement in my AAoA

 

My question is related to spending limits. 

 

2.)  I'm aware that if no spending limit is associated with the card then there is no positive or negative impact on my Utilization Rate - at least that's what I think I have learned on this site.   is this correct?

 

3.)  If we set a spending limit on just my card to something like $6,000, will the card then be included in my Utilization Rate?    or does Amex not report Spending Limit to the CRAs?

 

Thanks in advance for your help.


No there is no way to get the card to report a limit to the CRA, And their is a spending limit associated with your card it's just not made aware to yourself or your brother.

it's explained on AMEXs website if you would like to read more in-depth to the spending limit

 

 

Chase Sapphire Perferred | Chase Freedom | AMEX Platinum | AMEX Delta Platinum | AMEX SPG | Capital One Venture | Capital One Quicksliver | Discover IT | ABFCU Visa | Citi AA WEMC
Established Contributor
cashnocredit
Posts: 959
Registered: ‎07-18-2009

Re: American Express and Authorized User - Spending Limit ????? (and they back-dated me)

It's a very good, prudent, policy for your brother to set spending limits on the AU cards. But, as noted above, Amex doesn't report these. I have a couple AUs that I've set limits appropriate to their needs and it isn't reflected on their reports.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Contributor
fairclok
Posts: 79
Registered: ‎10-03-2012

Re: American Express and Authorized User - Spending Limit ????? (and they back-dated me)

thanks for the information everyone.      I just wanted to be sure, as I now like to know everything in advance before something hits my credit report, so I can estimate the impact.  

 

 


Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


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Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: American Express and Authorized User - Spending Limit ????? (and they back-dated me)

Is his platinum a business or personal account?

Chase Sapphire Perferred | Chase Freedom | AMEX Platinum | AMEX Delta Platinum | AMEX SPG | Capital One Venture | Capital One Quicksliver | Discover IT | ABFCU Visa | Citi AA WEMC
Frequent Contributor
steve23111
Posts: 354
Registered: ‎08-09-2011

Re: American Express and Authorized User - Spending Limit ????? (and they back-dated me)


fairclok wrote:

Hi everyone.

 

My brother recently added me as an Authorized User on his Amex Platinum as I've come a long way in rebuilding my credit.     

 

1.)   They happily backdated me to 1996 (i previously had a card I opened 1996, but closed in 2005), so I should see an improvement in my AAoA

 

My question is related to spending limits. 

 

2.)  I'm aware that if no spending limit is associated with the card then there is no positive or negative impact on my Utilization Rate - at least that's what I think I have learned on this site.   is this correct?

 

3.)  If we set a spending limit on just my card to something like $6,000, will the card then be included in my Utilization Rate?    or does Amex not report Spending Limit to the CRAs?

 

Thanks in advance for your help.


I have two AU (ACM) cards on my AMEX account and have first-hand experience with the Spending Limits feature.

 

The credit limit reported on an ACM card is the same as the primary card.  In your case, since it's a Platinum, no limit will be reported because it is a charge card.  Even if it were a credit card such as one of the Blue Cash or Clear cards, the limit reported would be the same as the primary card.

 

The Spending Limit should be considered exactly that: a spending limit.  It's important to note that once you hit the spending limit, you are cut off from making additional purchases on that card until the primary cardholder increases or removes the limit, or the beginning of the next statement cycle.  That is, if you have a $500 Spending Limit and spend $450 on the card in the same statement month, then make a $200 payment on the card, you still only have $50 left to spend until the end of the statement cycle.

 

I've clarified all this both on this board and with AMEX Customer Service.  The last time I checked they didn't emphasize this on the site, but I think they are assuming enough people will understand that "spending limit" means that you are limiting the spending, not setting a credit limit, though I understand how a lot of people would confuse the two.

 

I hope that helps!

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