How does Amex work?

[Anonymous]

I have an Amex card on the way.  I've read that there is no "pre-set" spending limit, so I'm wondering how it works.  With other credit cards, you know how much credit you have.  Do I have to hope that whenever I present the card it will be approved?

[Anonymous]

This really isn't specific to amex (and amex does offer conventional limit cards) - but the no preset limit doesn't mean you can spend as much as you want. In essen there is a limit, you just don't know about it. Once you reach that internally kept limit the charges may be approved, or may  be not. In case of amex for instnace if you're trying to buy more than they are comfortable with they'll likely give you a call and ask for some financial info.

[Anonymous]

I realize the card isn't an unlimited credit line.  What I'm wondering is, how do I know that if I hand my card to the waiter, or the cashier at Nordstrom, that my purchase will be approved? 

[Anonymous]

Once you get your AMEX card in hand, give 'em a call. Tell 'em you know there's pre-set limit, but you wanted to know whether they maintain some sort of "comfort limit" which they would approve without question, but anything above that would require a call to customer service. Appear lost and in need of help. They will likely give you all the info you need.

[Tuscani]

Which AMEX did you get? Some are charge (PIF monthly) and some are credit (min payment due ea month).

[Anonymous]

If you're being truly savvy about the use of that AMEX card, the CL should be irrelevant. Surely you don't have the card just to charge up three-martini lunches and DVD players so you can go on paying and paying and paying for them, right? You as a power user of the credit system just have that card so FICO sees you can pay yet another bill on time every time. Once every other month or so you go buy a computer game or a pair of shoes...nothing more than $50 or so...and you pay it down.

So whatever the hidden limit is, it doesn't matter. You're not going to even get close to it in any event. Right?

[fused]

KDM:

Just received the AMEX Rewards Plus Gold and intend to charge a lot for travel.  My problem is the cost for my airfare roundtrip, $3600.  I just hope they authorize the charge.  Bought a $3800 computer last month and charged my AMEX Blue and made an immediate payment of $2750 and suddenly AMEX invites me to apply for Gold Rewards card.  Keep us informed on how AMEX handles your charges and I'll do the same.

[Anonymous]

I've heard AMEX is an extremely tough card to get...sometime around 2015 or so I'll try applying for one. In the meantime, I'll watch this thread.

[Anonymous]

It will be used for a small charge monthly, less than a hundred.  Just so it's used regularly and easily paid. 

It will also come in handy for travel, which doesn't happen often (unfortunately).

[Anonymous]

I got mine in the mail today, so I'm signed up for online account services.

I'll keep you updated and you'll do the same!

Message Edited by KDM on 04-27-2007 07:38 PM