Received my Citi - AAdvantage MC Today - question

[BarryNTexas]

All, I received my Citi AAdvantage card today and reading through the brochure I found this interesting.  I would like to get your opinions.

More Spending Power:  AA WMC has no pre-set spending limit, along with a revolving credit line.  You will not incur over-the-limit fees for each month in which you spend beyond the revolving line.  Any charges over your credit line will be billed in full on your next billing statement.

So even with my set limit, if I use this card for business travel and my reimbursements are not aligned with my credit card due dates I should be able to book flights with this card even if the cost is more than the available balance?  This would be very powerful as this is what I am looking for.  Please tell me where the traps are.

Thanks, Barry

[gdale6]

There is a hard limit they will let you go over, any amount that takes you over your set limit must be paid back post next statement plus the normal minimum payment. If you are one who PIF then its not a problem.

[yudeology101]

Yes, you're correct.  WMC is a flexible spending credit card, so even though you have a hard limit you can still go over it as long as you pay the balance down under your given limit.  For example, my Citi WMC has $2k limit and had $650 balance on it...for this month I paid $1650 w/ this card so technically i went over the limit.  Then right away I paid it off so I was fine. 

[TravellingNomad]

let me take a stab at it....

yes, it means that you can spend over your hard cl without getting charged any over limit fees. BUT, any amount you charge over your limit is due in full on your statement due date. i.e. if your cl was $5k and you charged $5,250, that $250 + whatever your minimum payment due for that billing period is what you need to pay.

(apparently i type slow lol)

[indiolatino61]

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@TravellingNomad wrote:

let me take a stab at it....

yes, it means that you can spend over your hard cl without getting charged any over limit fees. BUT, any amount you charge over your limit is due in full on your statement due date. i.e. if your cl was $5k and you charged $5,250, that $250 + whatever your minimum payment due for that billing period is what you need to pay.

(apparently i type slow lol)

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+1...You are correct, sir!

[longtimelurker]

Just note though that it is not automatic.  Citi can deny a charge that puts you over the CL, they will just often allow it, but not guaranteed.  And with non-sig/world cards, an issuer can still allow over the limit charges (and can't charge a fee unless you have opted in).