No Limit Credit Cards Explained

By Dan Miller · August 14, 2023 · 5 minute read

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No Limit Credit Cards Explained

You may have watched a movie in which a character pulls out a fancy black credit card and brags about how he has access to unlimited money. The reality is that there is no such credit card. Some credit cards do come with “no preset spending limit,” but even those cards have some sort of controls and restrictions.

When you have a credit card with no preset spending limit, each purchase is evaluated on a case-by-case basis for approval. As long as you are using the card responsibly and regularly paying down your balance, you shouldn’t have any problems with purchases being declined.

Do No-Limit Credit Cards Exist?

While most credit cards do come with specific credit limits, there are cards that intentionally have no preset spending limit. Those card holders never have to worry about managing their available credit. Instead, the issuer will evaluate each purchase as it’s made to determine whether to approve it. The issuer may also provide a tool where you can check beforehand to see if a purchase will be approved.


💡 Quick Tip: A SoFi Credit Card provides access to a line of credit. It’s essentially a short-term loan that you repay each month.

Where Does the Idea of No Limit Cards Come From?

To “average” people who stick to a budget and pay their bills each month, there is something aspirational about a magical no-limit credit card. If you have an average credit limit, you might wonder what it is like to not be encumbered with one. Pop culture plays into this common desire to know what it would be like to be obscenely rich and not have to worry about money.

The Myth of the Black Credit Card With No Limit

In pop culture, the no-limit credit card always seems to be black, and there are ultra-luxury black credit cards. For example, American Express has the Centurion Card, which is a black credit card that is only available by invitation. But while the Centurion card (and other similar cards) don’t come with a preset spending limit, that doesn’t mean there is no limit at all.

Recommended: What Is a Luxury Good?

Pros and Cons of Cards With High Spending Limits

Here’s a quick overview of some pros and cons of high limit credit cards:

Pros

Cons

More convenient to pay for larger expenses It may be tempting to spend beyond your means
Harder to go over your credit limit If your card is stolen, you may be at a higher risk before you notice
A high credit limit can help your credit utilization ratio, when used responsibly A higher credit limit could mean more debt to pay down
A higher spending limit may allow you to earn rewards like unlimited cash back


💡 Quick Tip: A SoFi cash-back credit card is a great way to earn rewards without a complicated redemption process. Even better, SoFi doesn’t place limits on the amount of cash-back rewards you can earn.

What Does It Take to Have a High Limit Credit Card?

Most credit card issuers use a variety of factors when deciding both whether to approve you for a credit card and what credit limit to extend. Here are a few factors that may come into play:

A Good Credit Score

Most cards that come with no preset spending limit are considered premium or luxury credit cards. That means that you will likely need good or excellent credit to be approved.

Recommended: 8 Tips for Maintaining a Good Credit Score

A High Income

Another factor that can help you to get a high limit on a credit card is a relatively high income. Banks generally use an applicant’s income as one factor in determining a credit limit for a card. If you have a low annual income, a bank may be hesitant to issue you a credit card with a high spending limit.

An Existing Relationship With the Bank

Many banks are interested in building a relationship with their customers, especially ones they consider to be high-value. Showing that you are a loyal customer can encourage a bank to extend you additional credit. Ways to build your relationship with a bank might include opening checking or savings accounts, taking advantage of their credit card rewards program, or responsibly using existing accounts with them.

The Takeaway

While some credit cards come without a preset spending limit, all credit cards have some limitations in place. There is no publicly available credit card that will allow you to spend and spend with no consequences. If you have a card with no preset spending limit, the issuer will decide on a case-by-case basis whether to approve each purchase.

Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.


FAQ

Is there a credit card that has no limit?

There aren’t really credit cards with no limit at all (like you might see in the movies). But there are credit cards that don’t have a preset spending limit. Instead, the credit card issuer will evaluate your overall financial information to determine whether to approve any purchases. This might include your income, net worth, relationship to the bank, and previous spending and payment history.

How do people get no limit credit cards?

Most cards that come with no preset spending limit are luxury credit cards, which means that you’ll need to have good or excellent credit. Having a high income is another factor that can improve your odds of being approved. You might also consider strengthening your relationship with the issuing bank, like opening a checking account or other credit cards.

What does no limit credit card mean?

A no-limit credit card generally does not mean a credit card with absolutely no limit at all. Instead, many times people are referring to a credit card with no preset spending limit. When you have a card with no preset spending limit, you won’t have a specific available credit or credit limit — instead, the bank will determine whether to approve each transaction based on your overall financial information and/or past spending history.


Photo credit: iStock/Delmaine Donson




Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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