The “Unlimited” rule applies only to Amex credit cards. Credit cards in general do not have a credit limit, and the hope is that you will pay the entire balance each month out-of-pocket, without ever thinking about paying back the card.
If you have an Amex credit card, you may have noticed that there are many different options for credit, from regular cards to reward programs to travel cards, and each one has different limits. So what is this “unlimited” limit that Amex gives you? Here are some things to consider:
There are no “limits” to what type of credit cards are available. Whether you need to apply for a regular card or a reward card, you will be able to apply for as many cards as you want, as long as you meet the criteria. When you choose to apply for a reward card, it is important to make sure that you can actually benefit from all the perks. While many rewards programs offer good money-saving deals, you must also consider how the rewards will fit into your budget and what you can actually use your rewards for. Sometimes, you will find that rewards cards require a monthly payment or annual fee, and this will depend on the card that you choose.
While most rewards programs come with a low minimum to qualify, you should check out the actual rewards and decide if you need to meet the minimum requirement. If you are looking for a reward card, but not really looking for a cash cow, it is okay to apply for a small reward, so that you can test it out before spending any real money on it. If you do not feel that the card is worth the initial cost, then look for another rewards card.
Before you apply for any credit card, you should always carefully review the terms and conditions. Some cards may only allow you to use the card for specific types of purchases, which can be very limiting if you need to do a lot of traveling. You may also find that some cards will limit the amount of credit that you can transfer. between accounts and credit cards, so keep this in mind when you are comparing cards.
No matter what type of card that you choose to apply for, remember to read the fine print of the card before you decide to apply. And remember, even if the card does not have an unlimited amount of credit, you still need to pay off your entire balance at the end of each month to keep your card active.