What does a preset spending limit mean on a credit card?

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...

No-limit credit cards do not exist, as all cards have some sort of credit limit. The closest thing to a no-limit credit card is a card with no preset spending limit, which has a flexible limit that’s determined on a rolling basis, depending on factors such as your balance and payment history. That does not mean you have unlimited spending power, though.

Notable Cards with No Preset Spending Limit

Initial bonus: None

Ongoing...

A charge card works a lot like a regular credit card, but without the option of making a partial payment. In other words, the main difference is that cardholders typically must pay their entire statement balance each billing period with a charge card. For that reason, the minimum payment on a charge card is usually the same as the statement balance. Some issuers have started to allow cardholders to pay off certain purchases over time,...