lobbythis wrote:I've never understood this. You don't have a spending limit, but at the same time, you do. What is the benefit of that?
The idea is that it's a charge card which you have to pay off each month. So, you use it for day-to-day spending and not any sort of long-term payment plan. Based on that, if your normal spending on the card is $1000/mo then maybe you have some months at $600 and some months approach $2000. They get that. If, however, you tried to buy a car on your Amex at $30K then they'd red-flag it.
Obviously they have algorithms to figure this out and if you had already spent $1500 on your card but were making some special purchase of $5K based on some bonus then it's probably best to call them ahead of time and inquire.
I had a Green, Gold (various flavors), and Platinum card for years and never had a problem bumping into some limit. I think they may, over say a decade or so, asked to speak with me on the phone maybe twice just to confirm it's me and a valid purchase.
Now, I haven't had an Amex charge card is a 10+ years and whenever I think of getting one I have a really hard time justifying it and just pass on it. I pass because:
- Why pay an annual fee?
- I can't carry a balance. I normally pay my balances in full each month, anyway, but those are on AF-free cards so why pay Amex a premium to not carry a balance?
- I think you could argue that at one time there was a certain prestige to having an Amex in your wallet but today they're basically the same as Visa/MC/Disc - just go get one from your bank.
I know that there are some travel related reasons to get a Platinum which I'd consider if I traveled more.