FlyerTalk Forums - View Single Post - Amex:No fee charged if credit over limit. So..?
Old Aug 11, 2009 | 12:10 am
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soitgoes
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Originally Posted by Goofy Foot
What do these mixed messages mean for me? Credit ratings hit for going over limit? How much over? How much of a hit? Did they use to charge a fee?
Utilization is a big chunk of the credit score (ca. 30% IIRC). So, yes, going over will hurt your utilization ratio and your score. The impact will depend on the overall utilization across all your cards. The hit is temporary, though, as when utilization drops, the score will increase.

Getting rid of the overlimit fee only means that Amex won't charge you a fee if they allow you to charge more than your limit is. They don't guarantee they'll approve the purchase, and they don't guarantee they'll approve further purchases once you're over the limit.

It gives them total discretion with no recourse.
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