dumb question

[ecxpa]

What is a signature card......what are the benefits.  I have a Chase Sapphire and "signature" is written on the back

[Built2last]

Signature cards allow you to have a flexible credit limit. For example, if you have a $5000 signature card, you could make a $7000 purchase but would be expected to bring your balance below your credit limit in addition to making at least the minimum payment by the due date.

[ecxpa]

So.....if I understand correctly a signature card has a built in over credit limit protection.....sort of?

[gdale6]

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@ecxpa wrote:

So.....if I understand correctly a signature card has a built in over credit limit protection.....sort of?

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In a nutshell, yes you can avoid OL fees. Same thing applies to World M/C cards they are the Visa Siggy equivalent.

[jnc]

I am constantly amazed at the things I learn here.

I hold a world mastercard and had no clue about this.

This explains why I didn't get penalized when I went over the limit recently!

[enharu]

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@jnc wrote:

I am constantly amazed at the things I learn here.

I hold a world mastercard and had no clue about this.

This explains why I didn't get penalized when I went over the limit recently!

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the rules have changed with regards to overlimit fees.

If your card has a fixed CL, the banks cannot charge you OL fees simply because you went over the limit. You will have to opt-in for the overlimit feature for them to charge you any OL limits. As such, for non-signature or non-world MC cards, banks will usually just decline charges that are overlimit. 

As for World MC / Visa Sig, most of the cards have NPSL features as a standard feature, though its dependent on the bank as to whether they'll approve those charges.

[red259]

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@ecxpa wrote:

What is a signature card......what are the benefits.  I have a Chase Sapphire and "signature" is written on the back

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Not really a dumb question. I'm sure a lot of the general public have no idea what it means. 

[grinlikechelsea]

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@red259 wrote:

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@ecxpa wrote:

What is a signature card......what are the benefits.  I have a Chase Sapphire and "signature" is written on the back

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Not really a dumb question. I'm sure a lot of the general public have no idea what it means. 

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I agree. I certainly didn't know what it meant when I joined the forum.

[Themanwhocan]

I like Signature because it often comes with automatic warranty extensions.

[enharu]

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@Themanwhocan wrote:

I like Signature because it often comes with automatic warranty extensions.

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except it can be a nightmare with certain lenders....

For example, some may require you to ship the item to them at your expense. And if that item happens to be a 60 inch TV or just something large / heavy, then cost of shipping might actually exceed the cost of repairs / replacement!