Ahh, your answer came in while I was typing that out. So your card is still NPSL, you just inquired with Amex as to what your internal limit was and have used the Check Spending Ability tool.
To answer the question about the tool, it can set off fraud algorithms if used with escalating numbers (because if someone had your card info and could access the account they would likely do this to see how much they could fraudulently use your card) and it also places a temporary hold on your account because Amex is assuming you are planning to actually make that charge (thereby you risk having further charges declined if it said yes you can spend $15,000, that is your internal limit, and then you try to charge more). This info was provided by an Amex employee working in the Platinum/Centurion department.
As far as spending ability, while your use of the card is one factor, Amex takes a lot of factors into consideration. Your credit profile, income, and assets would be the key metrics they look at. In other words, your ability and likelihood to repay in full by the due date. There are certainly cardholders that can spend tens or even hundred of thousands of dollars right out of the gate, and even though I have not used my cards that heavily and have even gone months without using some of them at all, the two times I did play with the No-No button, it came back approving $80k and later $100k (the latter on my then recently opened Business Platinum).
@Anonymous wrote:
Can you explain "american express will place hard limits on charge cards?"
Did you mean in the future? Can you explain in simple language, I do not understand English very well.
For example, if someone misses a payment or undergoes a financial review and it results in the account(s) staying open but having limits placed on them, your Amex charge card account will show an actual credit limit instead of NPSL (No Preset Spending Limit). That will usually stay for a long time, sometimes years, and can only be changed by Amex during a later review of your account.
For this post, I am going to pretend that Pay Over Time does not exist, because it complicates some of what I'll say and I don't think it's really the point of the OP's question. But just be aware that such a thing does exist, and look into it if interested. It makes a charge card function a bit like a credit card in specific situations.
I will also ignore cases where a limit has been added to your card due to financial review or other reasons, because I don't know anything about that.
That said:
- Charge cards and credit cards are two different things. Amex offers both. For example, Blue Cash Everyday is a credit card. Amex Green, Amex Gold, Amex Platinum are charge cards.
- Charge cards are an older style of card that was originally designed so traveling businessmen or families did not need to bring large amounts of cash with them. You use the card to pay for your hotel and when you get home, you pay the card in full. It's as if you had brought the cash with you, but with less risk of theft.
- Charge cards, like the Amex Platinum, do not have credit limits, so you cannot get a credit limit increase.
- Charge cards do not have monthly payments. You pay the entire balance every month. So, you can probably use it to buy a $5,000 item if you like, but you will be making a $5,000 payment that month, or else you will have a late payment on your record.
- To reduce the unknowns about how much you can spend, Amex offers an online tool where you can type in an amount and see if it would be approved. This tool is intended to be used only when you are actually thinking about a purchase. It is not intended to be used "for entertainment purposes" to see what your limit is.
- Having said that, I used it enough to get locked out every day for like the first two months I had my Gold Card. There were no ill effects. I was approved for other Amex cards. However, I must recommend that to be prudent, you should not do this, as there is a reasonable belief that it may draw unwanted attention from Amex employees.
- The amount that would be approved will vary based on many factors but mainly your payment history. However, at all points, mine was above $10K. Everyone's spend varies, but unless you're thinking about using it for a larger purchase that that (which, remember, you will need to pay within a month), it doesn't matter as much as a standard CL matters, since the CL is a factor in utilization.
To the extent that Amex Platinum or any charge card is a "premium card" and thus lets you buy more expensive items, the concept is that you have a premium card because you can afford to pay with cash, you simply want the convenience of using a card, as opposed to having a credit card with a high limit, which is essentially a personal line of credit.
JMO YMMV!
