How do American Express authorized user spending limits work?

There is no way to know how high American Express credit limits are as Amex doesn’t disclose this information in their cards’ terms and conditions. Your credit limit will depend on your credit history, debt level, income, and payment history on other American Express cards. So, you won’t know your American Express credit limit until you’re approved for an account.... read full answer

One way to estimate what credit limit you might get on an American Express card is to read customer reviews of the card. People will often post what limit they received, sometimes with their credit score and income. But you should take any of these numbers with a grain of salt. Just because someone with a similar credit score or income got a certain limit, it doesn’t mean you will, too.

You can add an American Express authorized user online or by phone, at 1 (800) 528-4800. With either method of adding an Amex authorized user, you will need to provide some basic information about the authorized user, including their name, birthdate and Social Security number. Adding a user online is probably the easier method, though.... read full answer

How to Add an American Express Authorized User Online

1. Log in to your account and click on your credit card.
2. Click on “Account Services,” then “Manage Additional Card Members.”
3. Select “Add Someone to Account.”
4. Enter the new user’s name, date of birth and Social Security number.
5. Submit the information.

Whether you add an Amex authorized user online or by phone, you should note that you’re not required to give the date of birth and Social Security number right away if you don’t have it. But you will have to provide that info to Amex within 60 days, or the authorized user’s card will be canceled. The user must also be at least 13 years old to be eligible.

How Amex Authorized User Cards Work

Any American Express authorized user you add will get their own card, which will share a credit line with your card. However, you can use your online account to manage how much the user can spend – by setting their spending cap as low as $200.

As the primary cardholder, keep in mind that you are responsible for paying off any purchases made by authorized users on your American Express credit card account. The account activity will also impact both your credit standing and the credit standing of any authorized users.

By default, American Express will send the authorized user’s credit card to you by mail, and you can choose whether or not to give the physical card to that person. But you can also request to have the card mailed to the user’s address, as long as you make your request by phone rather than online.

You can remove an Amex authorized user at any time. They can also request to be removed at any time.

American Express Authorized User Fees

On most American Express cards, there is no fee to add an authorized user. But some of the more expensive cards will charge authorized user fees that are a fraction of the card’s regular annual fee. For example, you can add up to three authorized users on the American Express Platinum card for a total of $175 per year, then any users after that cost $175 each per year.

If you go over your credit limit, your credit card company may add the over-limit amount to your minimum payment, lower your credit line, or even close the account if you’re exceeding the limit too often. Also, your credit score will drop if the balance is still over the limit when reported to the credit bureaus. That said, it’s more likely that the card’s issuer will simply decline any transaction that would result in the balance exceeding the credit limit.... read full answer

Key Things to Know About Going Over Your Credit Limit

Opt-In Requirement for Fees.

The only time credit card issuers can charge an over-limit fee is when a cardholder has opted in for the ability to exceed their credit limit.

Other Fee Limitations.

Even when you’ve given your credit card company permission to authorize over-limit charges, a card issuer can only assess one over-limit fee per billing cycle, and that fee cannot exceed the amount by which you’ve gone over the limit.

Declined Transactions are Increasingly Common.

Ever since the CARD Act of 2009, which created these over-limit rules, most card issuers have stopped charging over-limit fees. Instead, they often just decline transactions that would go over your limit.

High Credit Utilization is Bad for Your Credit Score.

Credit utilization accounts for about 20% of your overall credit score. To avoid reaching your card’s credit limit and risking significant damage to your credit score, consider paying down your balance more often, applying for a new line of credit, or asking your card’s issuer for a credit limit increase.

To see the credit utilization on each of your credit card accounts and learn how that usage may impact your credit score, sign up for a free WalletHub account and check out the credit score simulator.