No Pre-Set Spending Limit Credit Cards

[zeusta20]

I'm 22, I am pretty good with my credit. (I take care of it as if it were my own child) lol...I do my research all the time on how to build/maintain my credit score. So I'm definitely knowledgable when it comes to credit

HOWEVER, I am a little confused on how certain NPSL (No Pre set Spending Limit) credit cards can help credit. I have 4 Credit Cards total. AMEX-NPSL, Wells Fargo-2500.00, 1st Financial Bank-4900.00, and Citi Bank-2,200.00 BUT it also doesn't have a pre set spending limit.

MY QUESTION IS....If I were to max out my Citi Bank credit card ( I don't plan to btw), would that count against me in a negative way seeing as my credit line is 2,200? I'm a little confused because it also does not have a pre set spending limit. Basically, anything OVER my credit line, I'd have to pay in full, just like my AMEX. And I know for my amex, they report the highest balance since I don't have a pre set spending limit.

Does anyone know how this would work out?

On my credit report, they report my credit line, BUT its also noted that there's no pre set spending limit.

I've had EITHER, a credit card with a credit line OR a credit card with no pre set spending limit.....BUT...I've never had it where i had both on one card. Where I have a credit line but can spend more than my credit line.

I would just like to know if it would count against me under the credit to debt ratio, utilization, etc.

Thank you for any input!!!

[jamesdwi]

Maxing out any non NPSL card (with maxiing out is the same as using more than 80% of the the CL) will take a hit on your FICO score. 

Maxing out your NPSL card doesn't matter no one outside of AMEX knows that number, your CL isn't reported even if you did max it out and let it post that way it has no impact on many scoring systems. Balances on NPSL doesn't count towards UTL. 

[navigatethis12]

The American Express Zync card does not report a limit, so having a $10000 balance will not count in utilisation because there is no amount for the $10000 to be utilising. The Citi card most likely does report a limit so if you have a $2000 balance it will count against you because it is being reported as utilising $2000 credit out of $2200 available.

[zeusta20]

would it make a difference if its noted as a flexible spending limit credit card though? Because my other two credit cards does not have that on my credit report. But my citi bank credit card does.

[zeusta20]

But what about my Citi Card? I'm not so much worried about my amex, because I understand that side of it. But for my Citi Bank credit card, it has a credit line AND its a no pre set spending limit card.

[navigatethis12]

If the Citi card reports the 2200 limit then yes it will have an affect on the score. If the card does not, then no it will not. Flexible spending has nothing to do with it as that is just a comment about the account.

The PNC card I have is a flexible spending card; I can go over the limit and have. However, since it reports the limit, any balance that is reported on it will be calculated in utilisation for that period.

[cardslayer]

I assume that you're referring to the Citi AAdvantage?

I think the part confusing is on the wording. Yes, your citibank card has no preset limit to approve charges, which they may market as "NPSL". However, it is a REVOLVING CREDIT CARD account. 

On the other hand, the AMEX PRG you are referring to is a CHARGE CARD. There used to be charge cards with hard limits, and I think Amex sometimes assigns those to people even now. But the point is, that a charge card requires the balance to be paid in full every month. So, if you charge $5k, you owe $5k in approx. 30 days.

With your Citi card, if you charge $5k (if they let you go that much over your assigned CL, my understanding is it's max 2x limit), you would have to pay $2800 ($5k - 2200 hard credit line). The remaining $2200 can revolve.

The AMEX revolves $0, while the Citi can revolve $2200. The Amex has some special perks where the "internal exposure limit" they assign to you, which they don't really publish, grows with your spending pattern based on certain factors. The Citi does not do that, you need to grow the credit limit as with a regular credit card, and may be allowed to go about 2x your credit limit but it will be due on your next statement.

As others are saying, a true charge card (like the PRG) has no limit to base on, so it does not count against utilization. The Citi does have a limit, so all charges against it count against your limit. I assume it would get really bad if you let your statement balance over your CL report.

[Crashem]

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@zeusta20 wrote:

But what about my Citi Card? I'm not so much worried about my amex, because I understand that side of it. But for my Citi Bank credit card, it has a credit line AND its a no pre set spending limit card.

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npsl creditcards count against fico score.  People are mixing up what is going on.  Amex charge card balances are not counted against util because their terms are 1 month, not because they are npsl.  Revolving cards util count.  If no limit showing, then high balance is used as limit.

[zeusta20]

Thank you. That makes a lot of sense when you put it that way.

[zeusta20]

And No, I don't have the AAdavantage...I acutally have the Thank you Preferred Card. That one does not have a preset spending limit either.