# Credit reporting when there's no limit?

**URL:** <https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943>\
**Category:** Factual Questions\
**Created:** [August 27, 2009, 7:15pm UTC](https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943 "2009-08-27T19:15:49Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\
**Post date:** [August 27, 2009, 7:15pm UTC](https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943/1 "2009-08-27T19:15:49Z")

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We got an interesting letter from our primary credit card holder, Chase, yesterday.

They’re enhancing (I think) the rewards program.

Oooh, and guess what - no more preset spending limit.

Bwuh?

I guess they’re switching our account over to something like an American Express model, where they authorize a purchase based on whether it looks like it’s in line with your usual spending history.

How do they report this to the credit agencies, though? I know Crapital One gets a lot of grief for reporting your highest purchase amount as if it were your limit, making it look as though your utilization is insanely high and screwing your credit rating.

Will this work the same way?

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**Author:** ![Philster](https://avatars.discourse-cdn.com/v4/letter/p/13edae/32.png) [@Philster](https://boards.straightdope.com/u/Philster)\
**Post date:** [August 27, 2009, 7:52pm UTC](https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943/2 "2009-08-27T19:52:24Z")

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Is it really ‘no limit’, or 100k? These offers have fine print under the fine print. Under that, there’s finer print.

Oh, Amex is all about limits now, and caused a flurry of activity when they invoked, and lowered, credit limits after the first round of ‘bail outs’ and the subsequent financial crunch.

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<div class="post-metadata">

**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\
**Post date:** [August 27, 2009, 8:12pm UTC](https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943/3 "2009-08-27T20:12:09Z")

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Good question, I’ll have to check the fine print. Maybe they’re counting on my eyes being too old to read it.

The poem [here](http://en.wikipedia.org/wiki/Ad_infinitum) seems apropos to your “fine, finer, still finer” description 😉

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**Author:** ![Measure\_for\_Measure](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/measure_for_measure/32/557_2.png) [@Measure\_for\_Measure](https://boards.straightdope.com/u/Measure_for_Measure)\
**Post date:** [August 31, 2009, 5:05am UTC](https://boards.straightdope.com/t/credit-reporting-when-theres-no-limit/507943/4 "2009-08-31T05:05:40Z")

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I don’t know about your particular offer but [JP Morgan Chase is indeed gunning for AMEX’s market](http://www.fool.com/investing/general/2009/08/21/jpmorgan-takes-on-amex-bails-out-california.aspx). Their premium card (Sapphire) will have no pre-set spending limit and will offer a point for every dollar spent.