What's the point of a limit if you can go way over?

[Dustink]

I just got an AMEX HHonors card with a $2,000 limit. I checked the website and selected the check spending ability. I submitted a purchase for $3,000.

"

Your inquiry to spend $3000 has been APPROVED. This approval is based on your account information available at this time.

Hilton HHonors Card  - XXXXX

CREDIT LIMIT

TOTAL

Current Credit Limit

$2,000.00

Available Credit

$1,926.00"

I just got the card, if they are willing to approve me for $3,000 purchases. Why didn't they just give me a $3,000 limit. Haha, funky system they got there. Glad to know how soft the limit is.

[jamesdwi]

The limit is the amount you can leave on the card from month to month, if you charge over the limit you may receive notice that payment is due in full on the amount over the limit by the statements due date. They may extend you the extra temporally, its not permission to keep the balance on your card for the next 3 years. 

[Anonymous]

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@jamesdwi wrote:

The limit is the amount you can leave on the card from month to month, if you charge over the limit you may receive notice that payment is due in full on the amount over the limit by the statements due date. They may extend you the extra temporally, its not permission to keep the balance on your card for the next 3 years. 

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+1  Amex may allow you to go over your limit, but you are not going to be able to carry a balance any higher than your limit.

[Dustink]

Makes sense. So, basically NPSL with a revolving limit of $2000.

[jsucool76]

It is kind of like amex's version of a world MC/Visa Siggy with NPSL. You can go over the limit but anything over said limit must be PIF

[shakalaka]

Still I would be carefull with going over the limit on a revolver with Amex. They have their charge cards for NPSL.

[nada9188]

Other thing to keep in mind is that if you are over the limit at statement date for four months in a year you go to default apr.

[nicholasyud]

Try 10000 and see what they said. Hahahhaha

[Dustink]

Your inquiry to spend $10000 cannot be approved at this time.

This request exceeds the limit on this account. Pay Bill can assist to increase the available limit on the account.

[Dustink]

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@nada9188 wrote:
Other thing to keep in mind is that if you are over the limit at statement date for four months in a year you go to default apr.

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I don't plan on ever going over. I actually think the APR they gave me was rather fair. Prime plus 11.99%