Many people look at their credit cards and think that they hold to key to unlimited spending, as if they can swipe without ever hearing a store clerk say that the card has been declined.
Unfortunately, that is not the case for most people because credit limits put a cap on the balance that they can carry on a credit card. For the mega-rich, their credit cards don’t come with such barriers to spending.
The Citi Chairman Amex Card (no longer offered), for instance, has no pre-set spending limit, which means that shopping spree doesn’t have to end.
Many other non-elite credit cards, including those under the Visa Signature and World MasterCard programs, also don’t have pre-set spending limits. But, card issuers may still have undisclosed spending limits in mind and freeze a card to reduce the risk of default.
With the more prestigious cards, such internal spending limits may be more lenient because of the financial credentials required to obtain such cards in the first place.
(Image credit: Peter Burge/ Flickr)