Question 1

What is a credit card with no limit?

Accepted Answer

Technically speaking, there's no such thing as a no-limit credit card. A credit card with no limit would allow unrestricted spending, no matter how gigantic and unwieldy your balance becomes. No such credit card exists. Instead, some credit card issuers offer exclusive personal or business credit cards with no preset credit limit. Some credit card companies may advertise cards without a preset limit as "no-limit credit cards," and offer them to applicants, businesses, or existing cardmembers who meet high credit and income standards.

Question 2

How high is the credit limit on Discover cards?

Accepted Answer

All Discover® cards come with a preset spending limit. The credit limits you qualify for depend on your financial circumstances, like your credit history, income, and debt, including your monthly rent or mortgage costs. These factors help card issuers like Discover predict how you may manage a high credit limit. You may also increase your credit limit over time by reporting increases in your income to your card issuer and maintaining excellent credit habits, like making on-time payments and repaying your balance in full whenever possible.

Question 3

How do credit cards with no preset spending limit work?

Accepted Answer

Credit card companies generally aim to prevent cardmembers from accruing a balance they can't repay, even for luxury cards without preset spending limits. So, the amount you may spend fluctuates depending on your payment history and purchasing habits. If you consistently show that you have the resources to manage expensive purchases on your card, you may have access to more credit. When it comes to credit cards without preset limits, card issuers typically assess each transaction. If they determine that you may not be able to afford a purchase based on your spending history, they may decline the transaction. Remember, however, that your behaviors determine the amount you can charge to a no-preset limit card. That means you may be approved for the same purchase later on, after you've demonstrated your ability to manage higher costs. A no-limit credit card is similar to a charge card, but with one key difference. A charge card typically doesn't have a preset spending limit, either. However, with charge cards, you have to repay your balance in full each month. Other cards without preset limits may allow cardmembers to carry a balance, though interest could quickly build on expensive purchases. Card issuers may offer tools that allow you to check your likelihood of approval before an expensive purchase on a no preset spending limit card.

Question 4

How do you get a credit card with no preset spending limit?

Accepted Answer

Qualifying for a personal or business credit card with no preset spending limit isn't easy. The credit card issuer typically has to be confident that an individual or business can manage a significant amount of credit to offer a credit card with no preset spending limit. That means applicants typically must have a high income and an exceptional credit score to qualify.

Is There a No-Limit Credit Card?

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