You may have seen a premium card like The Platinum Card® from American Express described as having “no preset spending limit.” That can sound like you have unlimited buying power, but that’s not quite how it works.

Put simply, a card with no preset spending limit just doesn’t show a fixed credit limit on your statement. It still has a limit — just a flexible one that adjusts based on your income, payment history, and spending behavior. It’s a dynamic limit, not an infinite one.

Here’s what else you need to know about cards with so-called “unlimited” credit limits, and what to keep in mind if you have one.

How spending limits are decided on these cards

For a card without a preset spending limit, you might be approved to spend thousands more than a traditional card allows. But your transactions can still be declined if you exceed what the issuer believes is a responsible amount based on your profile.

Card issuers use real-time factors to determine whether to approve a charge, including:

• Your recent card usage
• Payment history
• Total balances across accounts
• Overall credit profile

It’s important to keep in mind that no purchase is guaranteed to be approved, and issuers can lower your maximum at any time.

Cards with higher limits often require strong credit and high income, which is why they’ll typically be high-end, premium cards targeted at qualified users.

Examples of cards with no preset spending limit

Amex is the most well-known issuer of cards without a preset spending limit. Some of its most popular cards in that bucket include:

• The Platinum Card® from American Express
• American Express® Gold Card
• The Business Platinum Card® from American Express
• American Express® Business Gold Card

American Express notes that some purchases may still require pre-approval or split payments, especially if your spending pattern suddenly spikes.

Want to land one of these high-end cards today? Apply for the Amex Platinum Card now, and you could earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your card in your first 6 months. Terms apply.

Are these cards right for you?

If you’re looking for lots of spending flexibility, a card without a preset spending limit could be a good fit. But remember that they’re not “unlimited” in the way many people assume. Any purchase can still be denied if it’s out of the ordinary.

These cards also don’t report a set limit to the credit bureaus, which can impact your credit utilization ratio. That can be good or bad, depending on how you manage your balance and payments. In some cases, it might not factor into your credit score at all.

If you don’t like the sound of that, you’ll probably be better off with a high-limit credit card with a clear maximum. But if you’re looking for a card that doesn’t have a set limit, one of Amex’s top cards will fit the bill.

Apply for the Amex Platinum Card to enjoy no preset spending limit, plus generous rewards, today.