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Q: I’m thinking about getting an American Express card, how does the spending limits on these cards work?
A: Yes, they actually do, but you may not be given an exact figure. The limits are determined based upon how much you make in a year and your payment history with American Express. If you are an American Express user, you know that are expected to make payment in full at end of each month.
So, American Express lets you charge as much as you think you can repay at the end of each month. If you do happen to go over what they consider is your spending limit, they will call and notify you in writing that your charges appear to be going over the amount that it was anticipated you would spend for that month. You will be advised that until a payment is received, you will not be able to charge any more on the card.
This can actually be a good thing. If you receive such a notification, you will know in advance that you cannot put any more charges on your American Express card. This will save you from being embarrassed by the card being denied when you present.
Again, your spending limit WILL NOT NECESSARILY BE AN EXACT FIGURE. If you want an exact preset limit, which again will be determined based on the criteria listed above; you will have to get a Blue Cash or Delta Skymiles card, both of which DO have preset limits.