• Blog Home
  • About
  • Contact
  • Credit Card Reviews
  • FIND A NEW CREDIT CARD

    Popular Reward Credit Card Chase Freedom® Visa® $200 Bonus Cash Back Chase Freedom® Visa® $200 Bonus
    Popular Balance Transfer Card Discover More Card Discover® More Card
    Popular Low APR Credit Card Citi® Diamond Preferred® Card Citi® Diamond Preferred® Card
    Popular Cash Back Card Blue Cash® from American Express Blue Cash® from American Express
    Popular Business Card Ink CashSM – $150 Bonus Cash Back Ink CashSM – $150 Bonus Cash Back
    Popular Card for Bad or No Credit Orchard Bank® Classic MasterCard® Orchard Bank® Classic MasterCard®

    Credit News and Advice

    No pre-set spending limits explained

    October 20, 2007 - Posted in: Borrower Beware, Credit Health

    Many credit cards advertise “no pre-set spending” limits. But if you think you can just sign up for the card and go out and charge a Ferrari, watch out. No pre-set spending limit does not meet no credit limit. It means there is no pre-set spending limit.

    The Fine Print

    In fact, most no pre-set spending limit credit cards come with a credit limit. The card then gives the card holder the ability to exceed that credit limit in some instances if the amount of the balance over the credit limit is paid in full before the due date.

    That means that credit cards with no pre-set spending limits will authorize each purchase on a case by case basis. Whether or not they authorize a particular transaction will depend on multiple factors including your account history, your current balance, your credit history, you income, and your financial assets.

    Avoiding Your Limit

    If you plan to make a big purchase on your no pre-set spending limit credit card, you may be in for a surprise, as the transaction can be declined.

    To avoid an embarrassing situation, it’s best to call your credit card company prior to making any unusually large purchases or any purchases that will put you over your credit limit.

    You can also negotiate a higher spending limit after using the credit card for a year or more. Your chances of getting a credit limit increase will be best if you charge a significant amount on your card each month and pay the balance in full. You’ll also need a clean credit history.

    Compare and apply for no pre-set spending limit credit cards now.


    Don't Know Your Credit Score? Get It Free Now »

    See how you stack up against the average American’s credit score of 680. Know for sure whether you will be approved for a credit card or loan.

    • Checking your own credit score will not cause your credit score to go down.
    • Your credit score is separate from your credit report; credit scores are the best indication of how lenders see you and what loans or credit cards you will be approved for.
    • FreeCreditScore.com provides all three of your credit scores (Experian, TransUnion, and Equifax).
    Get Your Free Credit Score from Experian Now »