John S Kiernan, Managing Editor
No Preset Spending Limit (NPSL) means that your card does not have a pre-determined credit line. This does not mean that consumers will be able to spend limitlessly with No Preset Spending Limit credit cards and charge cards though.
An issuer uses various factors including your income, credit score, payment history and spending patterns in order to determine how much money you can spend in a given month. This amount (known as your credit limit) may change from month-to-month and you may not be able to find out what it is.
The way an NPSL card affects your credit score will depend on what information its issuer reports to the credit bureaus. This is because your credit utilization is factored into your credit score. Since NPSL cards lack a specified limit, issuers can either report credit activity in a way that includes them in credit utilization ratios (either as a credit limit or a high balance), or simply exclude information that determines these ratios.
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