Rhonda Stewart, WalletHub Loans Analyst
No, the American Express Platinum card doesn’t have any preset spending limit. That does not give cardholders unlimited purchasing power, though. It means American Express won’t give you a specific credit limit once you’re approved for the card. Rather, they calculate your purchasing power based on how much you spend on the card as well as your income, any debt you carry, and your overall creditworthiness.
Using a American Express Platinum card: Things to Consider
Credit utilization: While “no preset limit” can sound enticing, it can actually be quite dangerous. Credit utilization is a major factor in how your credit score is calculated. Essentially, “credit utilization” refers to how much of your credit limit you’re using each month. The less you use up, the better it is for your credit score. However, cards that have no preset limit make it extremely difficult to determine your credit utilization. They have the potential to hurt your credit score as a result.
Reaching your spending threshold: You also have to consider things in even more practical terms. If you don’t know what your spending power is, you won’t know when you’re approaching it. That could leave you in a tough spot in an emergency situation and make it difficult to buy high priced items with confidence. Thankfully, many cardholders have reported getting emails or calls from Amex early on, saying they were approaching their spending threshold and would need to make a payment before being allowed to make any more purchases.
The best thing to do when trying to figure out how much you can spend on your American Express Platinum card is to start small and gradually increase your spending over time.
The Platinum Card® from American Express
Ashton Mccants, Member
There essentially is no limit. Your limit is based on your normal spend on the card multiplied by 3.
That just means it's a vague limit, not that it doesn't exist at all
Amex most definitely does place a limit on the card. They try to couch the limit in terms of "spending power" and depending on how often one pays off the balance during a monthly billing cycle, you may exceed the limit in total spending during a given cycle, but the limit is definitely not an amount you will be allowed to go over, if the total balance on the account is at the limit.
People also ask
The way American Express works flows monthly. None of them have a preset limit -- they DO have a preset minimum, however, presumably based on your credit score. Each month, what you spend determines how much they will grant you. That amount does not last. If you do not keep up the spending, the amount will drop back lower again. I have had the green, the blue, and gold cards. The platinum has the same methodology, so based on that information I chose not to upgrade due to the higher annual fee.
Abdul Rehman, Member
I dont agree. I have Amex Business platinum and it has fix limit. I have to use my card within that limit and pay off the balance upon when its due.
The above applies to PERSONAL Amex Platinum Cards
Did we answer your question?