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American Express Authorized User

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American Express Authorized User

Good Afternoon, my sister in law added me as an Authorized user to her AMEX card.  Her AMEX card does not have a credit limit (so she techincally has limitless spending).  However, AMEX is reporting that the credit limit is $0.00 which obviously negatively impacted my score.  Has this happened to anyone else before? If so, was there a fix?

6 REPLIES 6
Valued Contributor

Re: American Express Authorized User

American Express charge cards do not have a credit limit so none is reported. This is normal, and is not negatively affecting your CS. The charge card will not factor into your single card utilization as none can be derived.

 

If you saw a score drop after the card was reported, most likely it's due to a new tradeline being reported and your score should bounce back pretty quickly.

Message 2 of 7
Frequent Contributor

Re: American Express Authorized User


@TryingtoBeLifeGoals wrote:

Good Afternoon, my sister in law added me as an Authorized user to her AMEX card.  Her AMEX card does not have a credit limit (so she techincally has limitless spending).  However, AMEX is reporting that the credit limit is $0.00 which obviously negatively impacted my score.  Has this happened to anyone else before? If so, was there a fix?


Sounds like she has a charge card, which doesn't factor into  utilization for scoring purposes.  She has a card that is required to be paid in full each month.  "Limitless spending" does not exist, lol...she just doesn't have a set credit limit, but trust me, AMEX is monitoring her spending and will cap it (if they choose to) based on her spending habits.  My platinum AMEX allows me to go pretty high (well over $40K), but there are limits.  Once she uses the card and reports a balance, you may see a change.

Message 3 of 7

Re: American Express Authorized User

On my report it specifically says $0.00. Is that normal?

Message 4 of 7

Re: American Express Authorized User

A balance is currently reported as well. It just threw me off. I knew it was a charge card but was confused by the credit limit being $0.  Your response has been helpful and hopefully the huge hit my credit score just took will bounce back.

Message 5 of 7
New Contributor

Re: American Express Authorized User

Before credit cards started giving "Credit Lines" you were given the charge capability. AMEX was the first CC company to do this, and I am sure you could ask grandparents about how they had a AMEX Charge card growing up. The principle is borrowing money for thirty days BUT you must pay it back.

 

As you can see this was a horrible venture as people started to get bad about their finances. Remember to ask next time you open a Credit Card to ask what kind of account it is. Most have converted to the Credit line models.

Message 6 of 7
Community Leader
Senior Contributor

Re: American Express Authorized User

Welcome OP

I got a chuckle out of, “so she techincally has limitless spending.”

We all wish to have a CC with no spending limit. Of course, with it comes humongous payments.

Just having some fun.
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