Amex - no monthly limit

[grc123]

Hello:

After years for trying to improve my FICO score and countless Amex application denials, I was finally just approved for an AMEX card.  I have to pay the card off in full each month.  I was told that they do not have a monthly limit, because there is no line of credit.  Does anyone know how a card like this can impact my FICO score?  It doesn't decrease my credit utilization, since there is no credit line. 

Thank you!

[Walt_K]

For the most part it doesn't factor into utilization.  That's both good and bad.  If you're looking to use it to add more available credit and thereby decrease your overall utilization, it won't accomplish that goal.  But at the same time, you can put charges on this card and not have your utilization go up, so that can be a good thing.

I said for the most part because I don't remember if there is some version of TU FICO (or one of the others for that matter) that does factor the card into utilization based on the high balance amount.  I know that, i.e., figuring utilization using high balance amount, happens for some NPSL cards like Visa Signature, but I didn't think it happened for charge cards that report as "Open." 

[Ron1]

It has a spending limit.  Amex doesn't tell you and it depends on your credit history, income and your payment history.  It can be changed monthly. For the first couple of months, you don't want over spend on your card to avoid F/R or account closure.

Ron.

[AndySoCal]

It does not affect your credit util at all  because it is a charge card.

[n777ua]

We got FR'd on a new Gold card from Amex after just 2 months of use; apparently we were using it a bit too much for their comfort level.  Nothing really happened, they just instituted a spending limit which is much higher than we would ever spend in a month; but it took about 10 days to get charging privelages back.

[android01]

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@Walt_K wrote:

For the most part it doesn't factor into utilization.  That's both good and bad.  If you're looking to use it to add more available credit and thereby decrease your overall utilization, it won't accomplish that goal.  But at the same time, you can put charges on this card and not have your utilization go up, so that can be a good thing.

I said for the most part because I don't remember if there is some version of TU FICO (or one of the others for that matter) that does factor the card into utilization based on the high balance amount.  I know that, i.e., figuring utilization using high balance amount, happens for some NPSL cards like Visa Signature, but I didn't think it happened for charge cards that report as "Open." 

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That would be TU 98, which unfortunately, is still used here at myFICO, I believe.  It uses high balance as the credit limit, which can make it look like you've maxed out your CL, at least for the first few times you let it report a balance.  It is my sincere hope that myFICO updates its versionl sometime in the near future.