I recently received my upgraded NW WP Visa Signature Card, which is advertised as having no credit limit.

When I read the cardmember agreement, it does say (item 21, Credit Line) that "There is no preset spending limit for your card."

But then in item 22, Revolve Limit, it says that "Your Revolve Limit is the total dollars available to you to carry over...from period to period as a revolving line of credit."

What's the difference???

[This message has been edited by SeoulGold (edited 06-25-2003).]

Revolving line of credit is the amount you may carry from month to month...but there is no limit so you may charge as much as you'd like but you must pay off any amount over the revolving limit each month

[This message has been edited by socrates (edited 06-25-2003).]

Example:

On a standard (non Signature or WorldCard) you have a credit limit of $10.000
This means that you can spend up to $10.000 and then choose to pay any portion of that (above the minimum pymt of course) any month and can "revolve" or carry over the full amount (minus the minimum pymt of course) from month to month. You may not spend above $10.000 ever (without severe fees and a strong possibility of having your card denied)

Now let's say you upgrade to the Signature or WorldCard. Your "revolving limit" is still the same "credit limit" that you had before $10.000 but now, you can spend above that amount without any penalty fees. The exact amount above $10.000 that you can spend is determined by an algorithm based on your credit history and previous spending habits. However, you must pay back in full at the end of the month the amount you spend over the revolve limit.

let's say you spend $15.000. Your payment due at the end of the month would be $5.000 (the amount over your revolve limit) plus your minimum payment on the $10.000 revolve - about $500 on a 5% min due amount. SO you muist pay at least $5500 and you can choose to pay more, or to revolve and pay interest on the remaining $9.500

Hope this helps.

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http://www.benjaminwagner.com
Great music!

I guess it does make sense. Thank you.

there is a preset limit then based on an some calculation.if you want to go over the revolving credit, you better call before doing it or you may be embarrased.