There is a credit card with an unlimited limit?!

john2054

I wonder how good your credit score has to be, to get one of these? Lol

American Express Centurion card, also dubbed “The Black Card,” is the most well-known exclusive credit card out there. With a $5,000 one-time initiation fee and $2,500 annual fee, you’ll need deep pockets for the privilege of having this card. Cardmembers have no preset spending limit.

Scroll to see replies

Reply 1

Charles III

There may well be. But it doesn't belong in Chat.

Moved to money and finance.

Reply 2

john2054

Original post by iEthan

There may well be. But it doesn't belong in Chat.

Moved to money and finance.

thanks Ethan...

Billionaire art collector Liu Yiqian paid $170.4 million (one of the highest prices ever paid at an auction) for Amedeo Modigliani’s “Nu Couche” on Monday. He plans to pay for the painting with his American Express Centurion card, a card for high-net-worth spenders that has no official credit limit, according to news reports.

Reply 3

Dewsy

The American Express Centurion (+Platinum/Gold/possibly the green below but note sure) all have no spending limit, but you have you repay at the end of each month. They're all charge cards as opposed to credit cards, so have spending limits and not credit limits.*

Actually don't necessarily need a 'good' credit score for them, just not a 'bad' score I imagine. I got a Gold Amex (with no spending limit) during the first week that I had a salary and prior to that the only real thing of note on my credit report was my EE phone contract of £12 a month, so I can't imagine that that gave me a particularly high score!

As for upper credit card limits - not a clue sorry! *

(edited 7 years ago)

Reply 4

john2054

Original post by Dewsy

But what is the difference between a charge card and a credit card. They don't come with the same insurance right??

Reply 5

Dewsy

Original post by john2054

But what is the difference between a charge card and a credit card. They don't come with the same insurance right??

With a charge card you have to repay your full balance at the end of every month. Your balance on a credit card can be rolled over at the end of the month, which is why you pay interest - It is a form of revolving credit.

There are certain statutory protections to protect consumers when purchasing things with a credit card which don't apply for charge card purchases. Charge card providers often have their own similar schemes in place though which provide similar protections for consumers.

Reply 6

john2054

Original post by Dewsy

I'm not bothered with charge cards then. I like having free money, comeon!??

Reply 7

milliemogs

Original post by john2054

I'm not bothered with charge cards then. I like having free money, comeon!??

It's not free, you repay it.
you are also paying interest so it's costing you even more.

Reply 8

john2054

Original post by milliemogs

It's not free, you repay it.
you are also paying interest so it's costing you even more.

it's not even a credit card, it's a charge card, which means you have to repay the full balance after the first month. At least with a credit card, you only have to pay the minimum interest!

Reply 9

milliemogs

Original post by john2054

it's not even a credit card, it's a charge card, which means you have to repay the full balance after the first month. At least with a credit card, you only have to pay the minimum interest!

But you still have to pay the full interest at some point, you're just delaying it, accruing more interest and therefore are paying way more than the item actually cost in the first place. You're mad if you can't see that.

Reply 10

john2054

Original post by milliemogs

So say i take out a £100 and pay it back in two months. On one of my credit cards which has an interest rate of 30%, well (100*.3/12)*2=£5

I would have to pay £5 interest for borrowing £100 for two months. Call me hard up, but that's hardly breaking the bank is it? Sometimes it is good to have access to money, when you need it.

Reply 11

Hedgeman49

Original post by john2054

Fine for £100 and for two months, but quickly gets expensive if you scale it up and/or let it roll up for several months which is very easy to do

Reply 12

john2054

Original post by Hedgeman49

Fine for £100 and for two months, but quickly gets expensive if you scale it up and/or let it roll up for several months which is very easy to do

Thanks Hedgeman, I actually think the rate tends to be a bit higher than this, but even still, with these kind of figures we're not going to break the bank.

My point being that they are not that expensive. Even i phones cost more. So do cars, neither of which i have.

Reply 13

estel

But why would you choose to pay even £5 to spend £100?

Original post by john2054

Thanks Hedgeman, I actually think the rate tends to be a bit higher than this, but even still, with these kind of figures we're not going to break the bank.

The £5 might not seem much on £100, but personally I wouldn't be happy taking a 5% pay cut.

Reply 14

john2054

Original post by estel

But why would you choose to pay even £5 to spend £100?

The £5 might not seem much on £100, but personally I wouldn't be happy taking a 5% pay cut.

Actually my co-op student account and barclaycard credit card, both have 0% interest for the time being at least, so i don't even have to pay that. However i try to spend at least a little on all of my cards most months, just to keep them in good working order (which is then reflected in the credit reports).

Reply 15

Joinedup

Original post by estel

But why would you choose to pay even £5 to spend £100?

The £5 might not seem much on £100, but personally I wouldn't be happy taking a 5% pay cut.

Well you might run over a nail a week before payday and need to borrow on the card to get a new tyre to keep you on the road and able to get into work.

Reply 16

estel

Original post by Joinedup

Well you might run over a nail a week before payday and need to borrow on the card to get a new tyre to keep you on the road and able to get into work.

Yes, that's a decent reason. But for those that are able, it's also why saving for an emergency fund should be such high priority. A credit card shouldn't be used as an emergency fund unless you can at all avoid it.

Reply 17

john2054

Original post by estel

Please don't tell people how to spend their money, thanks.

Reply 18

milliemogs

Original post by john2054

Please don't tell people how to spend their money, thanks.

They're completely right though. That is why we are having such huge problems in today's society. People are so greedy and have such a desire to have everything they want, people aren't saving anymore. There are so many people struggling and having to resort to benefits/charities if they lose their jobs even though they were earning high salaries because people just don't save any of their money. It's going to be a disaster when our generation reach retirement age as half of them will have nothing to live on.

Reply 19

john2054

Original post by milliemogs

Okay, i agree that there is a problem with benefits payments. I only get £260 a month, and i am going to have to reapply for this soon. I did a degree, got a 2.1 and still can't find a job. Now with benefits payments and sfe debt combined i am about £40k in debt.

That is long term debt however, for the credit cards, are short term debt. It isn't like it was ten years ago. These days it is quite hard to get a credit card, and even if you have one, and don't pay at least some of it off each month, they will take it off you quicker than you can say 'a quick thing'. Which is pretty quick!