What is my credit limit american express

The credit card limit is the maximum amount of money you can spend using your credit card. It gets extended by the lender and contractually agreed upon by the credit cardholder. The card issuer sets this limit based on its clients' credit scores and credit reports.

Your credit history influences your credit limit

Credit card limits are subject to a set of mandatory qualifications that the issuer requires of its clients. Your credit card limit is set at a lower amount if your credit history indicates that you are a high-risk borrower. Similarly, a low-risk borrower with a good credit rating can get an extension to a higher credit limit.

When you apply for a credit card, the following are the details to look at:

• Personal income
• KYC details
• Security vis-à-vis employment status
• Current debt
• Current credit in your name
• History of loan repayments

This information combined with your credit score determines your credit card limit.  If you are unable to meet the required criteria to qualify for a particular Amex Credit Card, alternative options of Credit Cards and Credit limits can be open for discussion.

Total credit limit and available credit limit are different

The total credit limit is the absolute maximum amount that you can spend using your credit card. Available credit limit refers to the current balance available on your credit card after your monthly expenditure.

For example, if you have a credit card with a limit of ₹80,000,  then this is the amount which is your spending limit on the card. 

Future spending/purchases should not exceed this amount. Failure to do so will take you over your credit limit and bring with it an additional penalty and fee. It could also negatively impact your credit rating. When you make your repayments, your available credit limit is automatically adjusted.

Can I spend more than my credit limit? 

The safest way to spend beyond your credit limit is by first asking us for a credit limit increase. Making a prior arrangement with Amex will allow you to spend without having to worry about penalties and other
unfavourable consequences.

Over-limit fee

Over-limit transactions come with caveats. Amex charges a fee if  you are going to overspend on your Credit Card. Also, you can only exceed your Credit limit till a pre-set amount. If your current available Credit Card balance has exceeded your total Credit limit, all further transactions get declined.

Overspending without informing

If you overspend without notifying us, you can get penalized for the transaction, or your Card gets declined at the merchant site. If you are a repeat offender, your Card limit might also be decreased or even cancelled by some issuers.

Your credit score might get affected

Over-limit expenditure automatically increases your credit utilization rate, which reflects poorly on your credit score. To avoid this, you should always try to pay the over-limit dues as soon as possible. Please note that spending above your limit may make it difficult for you to apply for a new credit card in the future.

Your credit limit is determined by your credit card issuer and may be based on several factors that help the credit card issuer determine your creditworthiness, such as:

● Personal income and expenses

● Length of credit history

● Credit score

● Debt-to-income (DTI) ratio

● Current limits on other credit cards.

Understanding the difference between available credit and your credit limit is important as they are two very different things. Your credit limit is the amount of credit you have been approved for by the lender. The available credit is the amount  that you could spend on your credit card.

For example, if you have a $10,000 credit limit and you spend $2,000, you would have $8,000 in available credit. If you then made a payment of $500 to your credit card, you would have $8,500 in available credit.

You can request a credit limit increase or decrease online for your American Express Credit Card or by calling the number on the back of your Card. Before you apply for an increase, it is important that you consider your personal financial circumstances. Additionally, if you are looking to make an increase due to an upcoming large purchase, check your spending power first1.

A Credit Card limit is set when you’re approved for a Credit Card and is the maximum amount of credit you can use on your Card. All Credit Cards have a maximum and a minimum Credit limit.

When you apply for a Credit Card, you’ll have the opportunity to indicate your preferred Credit Card limit. Approval for your new credit line will be subject to our approval criteria. You should ensure that you nominate a Credit Card limit that’s in line with your current financial circumstances. It’s also important to know that choosing a low limit during the application process will not change your chances of approval. If you don’t choose a limit, we’ll assign you one, based on your current financial circumstances.

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