CalAlumnus13 wrote:I know the basics: NPSL doesn't mean unlimited spending, and Amex can deny a charge if it exceeds what they think I'm able to pay, based on what they know about my income, credit, and past spending.
My question is this: [color="red"]Could my PRG have a relatively low "credit limit" beyond which I could not make any purchases, even one that's relatively small ($50-$100) and consistent with my past purchases?
Basically, I'm worried about using the PRG for dining, and getting a meal declined unexpectedly in front of friends or family. Could this realistically happen, assuming I haven't already spent x times as much as I normally do in a month?
(I'm aware of the Check Spending Ability tool, but that seems to relate more to a single large purchase than to an overall limit.)
"Could" it have a low limit? Yes. But does it have a low limit? Depends.
How long you've had the card, how much you've used the card, what sort of spend pattern, and what sort of payment pattern, could all be facets that AMEX looks at. If you have a history of dining out and using the card for such expenses, it would seem to me your chances of being declined would be minimal, especially in that $50-$100 range you mentioned. Anecdotally, what AMEX looks for is unusual or extraordinary changes in spend patterns.
The best way to resolve it is to simply call them ahead of time. If you know you're going out to dinner with, say a group of family members and you're going to pick up the tab and it could be several hundred $$$, just call and explain that to them, that you anticipate a larger than normal expenditure and will it be approved. My guess is, you'll be pleasantly surprised at how AMEX will want to help you out.
EDIT: There's a member here, Travis, who may weigh in on this, since he has a unique insight into the workings of AMEX. Personally, I've used my AMEX cards sometimes in an unusual pattern and have never been declined.