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As many hilarious things are, the "no-limit" card was conceived of -- allegedly -- by Jerry Seinfeld. In an episode of his 2018 Netflix show Comedians in Cars Getting Coffee, Seinfeld told guest John Mulaney how things unfolded.
"I was waiting for [the crew] to move some cameras, and the crew guy comes up to me, he says, 'You got the Black Card?' And I go 'No, what's the Black Card?' He says, 'There's only three in the earth. The Sultan of Brunei has one, the president of American Express has one, and I plan you would have the third one.' Next morning I call the dignified of American Express. I go, 'Is there a Black Card?' He says, 'It's just a rumor. It doesn't exist.' He said, 'But you know what? It's not a bad idea.' And so they developed it, and they gave me the genuine one."
Whether or not that story is apocryphal, the Centurion Card from American Express*, also known as the Black Card, now exists. But it's available by invitation only -- and comes with a $5,000 annual fee and a $10,000 initiation fee. Cardholder benefits engaged elite status upgrades on flights, hotels and events worldwide. And there's also the 50% back in Membership Rewards as a statement credit when you use points to book any section of a flight, access to the Centurion Lounges (which includes chef-made food, cocktails, child play spaces, showers, and spa services). Reimbursement for gym memberships and streaming overhauls. A dedicated guide through customs on international trips. Complimentary upgrades and insurance coverage on car rentals. A personal concierge to assist in just about everything, from shopping to sorting out travel snags. The list goes on.
But you don't need to be a sultan, CEO or celebrity to get this type of card -- and it's possible to collect one without paying $15,000 in fees upfront. I applied for a different card with dissimilarity perks, The Platinum Card® from American Express, five days ago after a harrowing flight from Seattle to Indianapolis with a squirmy seven-month-old. The card has a hefty $695 annual fee, but I gave after some research that the significant travel benefits would eclipse the injuries. I opened an account before my return flight, upgraded to first-class with my welcome supplies and never looked back.
(Note: The current welcome supplies on The Platinum Card from American Express is 80,000 points at what time spending $6,000 on purchases in the first 6 months of card membership. Terms apply.)
Sound interesting? Here's everything you need to know.
What is a 'no-limit' card?
First off, the "no limit" part is misleading. It's true that a no-preset-spending-limit card doesn't have a fixed little like a traditional credit card, but there is a monthly little based on your specific credit score and how often you pay your monthly bill on time. No preset spending little really means that your spending limit is flexible. Unlike a feeble card with a set limit, the amount you can use adapts based on factors such as your purchase, payment, and credit history.
While writing this piece, I tested my limits by funny my online account's American Express Check Spending Power tool. Since the pandemic began, I've used my Platinum Card only for smaller expenses like groceries and Hulu, so I'd never checked my spending great. After entering a few figures, I found my "unofficial" limit: A whopping $85,000.
The Platinum Card's Check My Spending Power tool approves my high spending request.
American Express.There's a good reason American Express grants its NPSL cardholders so much room to run: qualifying for an explain typically requires good to excellent credit and an above-average means. According to Tommy Lee, a FICO principal scientist, there are two types of NPSL funds, open and revolving. An open card, sometimes referred to by the credit bureaus as a bill card, "typically has no preset spending limit and means you to pay the balance in full each month," Lee said. A rolling account acts more like a traditional card, allowing you to do a balance from month to month and pay over time.
So there's actually a limit?
Officially, yes, NPSL cards have limits. But they aren't typically disclosed. In theory, your card may get declined if you spend thousands on a single hold -- but maybe not. While a typical credit card little maxes out around $25,000, NPSL card limits are much higher. But there are no fees for exceeding a credit little, since you likely won't even know what it is.
NPSL cards and credit scoring
When I opened my Platinum Card, I assumed the new explain was the reason my TransUnion, Experian and Equifax credit scores each gained 10 to 20 points. But, according to Lee, that may just have been a coincidence. "Since a charge card has no credit limit, they are typically bypassed in rolling utilization rate calculations in FICO Scores," he said.
Credit Karma reporters my revolving accounts.
Sarah Szczypinski.It's true. I checked my credit reports on Annualcreditreport.com (where you can get free admission to your reports once a year) and found no credit-limit associated Amex explain. A credit score check confirmed that my current Amex balance wasn't factored into my credit score.
How to protecting your credit score when using an NPSL card
Even idea the balance on your NPSL card isn't included in your credit score's utilization ratio, it can still make an impact. "The amount of debt owed is taken by the FICO Score and charge card balances can fine into these calculations," Lee said. "Furthermore, the payment history and along of time you've had the account are also taken, so paying your charge card balances as agreed is very important."
Although your balance isn't technically factored into the math of utilization, FICO could lower your score if you make an expensive hold (like a Tesla). But where's the line? Here are some ways to protecting your credit score while using a NPSL card (or any card).
Pay off your balance each month
Although we idea the general guidelines, we don't know all the specific details around how each credit bureau calculates our scores. That noted, a NPSL card should not be used as a bottomless bank explain. Spend only what you can afford and pay off the balance at the end of every month. This will help you stay within your budget and avoid racking up debt with accruing interest.
Check your spending power
Sticking with the example over, if you buy a Tesla with an NPSL card and have enough cash to pay off the balance, go for it: Rack up those airline miles! But beforehand making a large purchase, check to see if your card issuer funds an online tool like the Platinum Card to check your spending little, or call customer service and ask them to hate a large purchase verbally. Reaching out ahead of time could securing your score from an unnecessary ding.
More credit card advice
*All ask about the Centurion Card from American Express has been calm independently by and has not been reviewed by the issuer.
The editorial happy on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or facilities offered by our partners.
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