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Why Are Some World Cards Given A No Preset Limit & Not Others?

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plasticguy
Established Contributor

Why Are Some World Cards Given A No Preset Limit & Not Others?

Does anyone know why some World Mastercards carry a no pre set spending limit and not others? For example I have the B OF A Cash Rewards World MC Card that has a no pre set spending limit, but I also have Citi Dividend World and Capital one Venture World and they do not have a no pre set limit?
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2 REPLIES 2
lanc
Regular Contributor

Re: Why Are Some World Cards Given A No Preset Limit & Not Others?

From my understanding all world mastercards are NPSL.  It even says on the mastercard website the world is a npsl card with additional funds available if you need it.  It seems like certain banks decide to put there own limits on the cards (which is good for your fico).  Here is a pretty nice breakdown of how different banks report even though it's from 2010:

 

http://education.cardhub.com/no-preset-spending-limit-2010/

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trumpet-205
Valued Contributor

Re: Why Are Some World Cards Given A No Preset Limit & Not Others?

ALL World MC are NPSL. I mean ALL.

 

That said that does not mean you can go "shopping-happy" on NPSL. All NPSL comes with a credit limit, and you will be told about it with the exception of AMEX. NPSL allows you to go over your credit limit, but any amount over the credit limit must be paid in full.

 

Meaning with a $5K NPSL and $6K spending, I need to pay minimum $1K back. I cannot just pay minimum amount (say $20) and carry the balance to my next statement.

 

So $6K NPSL and $8K spending = at least $2K payment before due date, etc.

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