AmEx Revolving CL - I don't understand...

[MACFRME]

Okay, so I put my new Delta Gold to use today and bought my ticket to Europe using the card. The ticket was $1,150, well over my $1,000 line. I never go over my limits, but I had to use the Delta card to buy a Delta ticket (2x miles, 30,000 miles sign-up bonus, and $50 statement credit for a Delta purchase). I have to buy 2 more, but I am waiting on the bonus miles to post and for a rush payment from CheckFree to post, which will take the account back down to $0. Sorry for the long-windedness, but I had to explain before getting to my question. I did this at the advice of an AmEx rep. She said they could not say whether a charge above my revolving CL would go through, but that I should try anyway. Well, sure enough it went through. I am just hoping this does not set off any alarms with them. I am paying the entire balance back within 2 days of the purchase. I am curious as to how the AmEx revolving limits work, if it was so easy for me, a new cardholder with them, to charge about 15% above my credit line, then what does that mean about the CL? Is is similar to the Visa Signature cards, where you have to pay off anything above the CL in full, but you can revolve the rest? I am just not understanding why they would approve the charge. Aren't they automatically supposed to opt customers out of overlimit coverage under the CARD Act? I know that is what Cap1 has been doing. Thanks in advance for your responses.

[lg8302ch]

For me there is more the question why they gave you only a 1K limit? Looking at your siggy you already have a charge card with AX and other higher limit cards including CSP 

[MACFRME]

Too many new accounts, too many inquiries, and my Experian report is not the best. Plus, Compass, Discover, and CSP were not yet reporting when I applied. The charge card actually came after the Delta. They literally would not approve the charge until I was in with the revolver. I am just wondering why I am able to charge so far over my limit. Maybe because it was a Delta purchase?

[lg8302ch]

This is interesting as I always thought the charge cards are easier to get than the revolvers.  The only reason I could imagine is that this is a single large transaction so it got approved and if you had done hundreds of small ones they might have declined them over the limit...but this is just a lucky guess

[OhioCPA]

If your internal limit with Amex is higher than your CL on that one card, Amex will allow you to go over your CL. The only consequence is your minimum payment due on the statement will be the normal calculated amount on the first $1,000, and the excess over $1,000. Thus, your payment due will include the $150 that exceeded your limit plus the 3% or so of the $1,000.

[MACFRME]

So it is just like the Visa Signatures! I thought so. All of these charges will be PIF'd and transferred to a credit union card that allows no-fee cash advances at the purchase rate 9.7%. I will wait for the payment to post, then book the second ticket, repeat, and book the third and PIF. This should help me get the 61-day CLI, hopefully.

[scenery_guy]

It possible to push a payment larger than what's due to AMEX via bank transfer or wire. If you know you have to make $3K in purchases you can always push a $2K payment before the transaction and you would be clear to charge the $3K no issues. 

Also if you are moving that kind of purchases thru the low limit card you should not have an issue at 61 day CLI request. AMEX likes to see usage and PIF. 

[ryanbush]

If you just use AMEXs website to do the payment your available credit will be reflected instantly then you can make the next transaction

no need to wait 2-3 days.

[MACFRME]

I'll probably do that for the next one. I was not aware of that feature. Thank you so much for the info!

[Creditaddict]

I have seen Amex let revolving credit cards go $1-$2k+ over the credit line... they can be a weird egg!