The guide to “no limit” credit cards

"No limit" for a credit card generally refers to a card with no preset spending limit (they’re sometimes referred to as “unlimited credit cards”). These can be a fast way to offer a little more financial security, which is why many business owners turn to business credit cards without fixed limits as a valuable resource.

Unlike traditional credit cards, these cards do not impose a specific spending cap, allowing businesses to make purchases based on their current financial situation and payment history.

While the allure of unlimited purchasing power can be tempting, it's essential to understand how such a card can impact your business's financial health. Let's explore the potential benefits and drawbacks of "no limit" credit cards and how they might fit into your business strategy.

Do no limit credit cards exist?

A “no limit credit card” doesn’t technically exist.

The term is used to describe a type of card that has a flexible, rather than preset, spending limit. Unlike with a regular credit card, the limit on these cards fluctuates monthly based on factors like your credit score, income, and payment history. If you make regular purchases and consistent payments, you’ll probably receive higher spending limits. On the other hand, missed credit card payments, reduced income, lower profitability, or a poor credit history could lower your credit limit.

Occasionally, the term “no limit credit card” is also used to refer to cards with very high credit limits. Invitation-only “black cards” are a type of highly exclusive credit card that comes with extremely high credit limits and spending requirements. The most popular card in this category is the American Express Centurion® Card, which comes with an invitation fee of $10,000 and an annual fee of $5,000.

What else you need to know about no limit credit cards

How much can I spend on a credit card with no preset limit?

Most credit card providers won’t list their maximum limits before you apply. Instead, your credit limit will be determined after you’ve been approved. Having excellent credit and applying for cards that are known for having high limits increases your likelihood of landing more spending power, but you should choose a card with benefits and rewards that suit your business regardless of its limit.

How does a no preset spending limit affect credit score?

A credit card with no preset spending limit (NPSL) affects your credit history in several ways. These cards usually don't report a fixed limit to credit bureaus, which can influence your credit utilization ratio—a factor in your credit score.

Since the issuer may report your highest balance as the limit, this can lead to higher perceived utilization. Making timely payments is important, as payment history significantly impacts your credit score. Applying for an NPSL card results in a hard inquiry, which can temporarily lower your score.

Additionally, having an NPSL card can improve your credit mix, potentially boosting your score. However, the flexibility of these cards may encourage overspending, leading to higher balances that could be difficult to pay off, negatively impacting your credit if it results in late payments or increased debt levels.

Pros and cons of unlimited credit cards

Do these build business credit?

Yes. Cards with no preset spending limit can help businesses build credit, which is crucial for future growth and access to funding. They can be especially useful for small businesses as they offer the financial flexibility needed for scaling operations.

Like with other credit cards, making regular, timely payments on your high-limit credit card can build your credit score. Most credit cards report to the major business credit bureaus, thus helping to build your credit history.

One of the main factors in determining your credit score is your credit utilization ratio, which refers to the percentage of available credit that you have spent. Keeping your utilization below 30% is generally considered ideal.

Do business credit cards have spending limits?

Yes, business credit cards usually have spending limits based on your business's financial standing and creditworthiness. Some cards offer flexible or higher limits to accommodate business expenses, while others feature a "No Preset Spending Limit" (NPSL), which adjusts based on usage, payment history, and other factors.

How to get business credit cards with no preset spending limit

Applying for a no preset spending limit credit card is similar to applying for a standard business credit card, which is usually done online. Most banks and lenders aren't too flexible with extending limits beyond $25,000.

Before submitting your application, here are a few questions to ask yourself:

• Intended use: What expenses do you plan to charge on your no-limit credit card, and how often do you expect to use the card?
• Financial need: How much do you anticipate charging on your business credit card every month?
• Repayment and responsibility: Can you use your card responsibly and pay off the full card balance every month?‍

To choose the best business credit card for your business, compare the terms of all the available cards. Consider the rewards programs and perks, and fees like interest rates, foreign transaction fees, and balance transfer fees. Be sure you understand what terms apply to each card.

Alternatives to no limit credit cards

• Balance transfer cards. Individuals and businesses with fair or poor credit may be eligible for a balance transfer card with a predefined limit. These allow you to consolidate high-interest debt and expedite repayment by leveraging a 0% introductory APR for a designated period.
• Corporate charge cards. Financially stable businesses seeking the convenience of a high credit limit without the risk of accumulating ongoing debt might consider a charge card, like Ramp’s Business Credit Card. These cards require full payment of the outstanding balance each billing cycle.

The best no limit business credit cards

Securing a high credit limit or even a no-limit business credit card can be invaluable for managing cash flow and making significant business investments. Keep in mind that qualifying for these cards often requires excellent credit and a strong business history; the exception is the Ramp Business Credit Card, which uses your business’s cash flow and revenue to determine amounts instead of a credit score.

So, which credit card has a no spending limit?

Ramp Business Credit Card

Ramp is an all-in-one corporate card and expense management platform designed to simplify your company’s financial operations. By providing easy-to-use funds, approval flows, vendor payments, and more, Ramp creates a seamless way to manage expenses and optimize savings and have access to no preset spending limits.

To qualify for Ramp, all you need is:

• A registered LLC or corporation in the United States
• An EIN number
• $25,000 or more in a U.S. business bank account—or, commerce businesses may be eligible for our sales-based underwriting
• Personal contact details as the business owner

The American Express Business Gold Card

If you’re looking for a card with no preset spending limit with AmEx, consider the American Express Business Gold Card. It’s a charge card, not a credit card, so you’re expected to pay your entire balance in full each month.While there's no fixed limit, American Express assesses your spending power based on factors like your spending history, payment history, and creditworthiness.

Capital One Spark Cash Plus

The Capital One Spark Cash Plus provides flexibility for larger business expenses as it has no preset spending limit. It earns 2% cash back on all business purchases, with no caps or limits, and 5% back on hotels and rental cars booked through Capital One Travel.

Credit cards with the lowest credit limit

Conversely, opting for a credit card with the lowest limit possible can help individuals build or rebuild credit by allowing them to demonstrate responsible usage without the risk of accruing significant debt. A low limit also aids in controlling spending and sticking to a budget, while reducing the risk of unauthorized charges in case of loss or theft. It can serve as a tool for young adults or teenagers to learn financial responsibility with minimal risk. Additionally, a lower limit makes it easier to maintain a healthy credit utilization ratio, positively impacting your credit score.

So, what is the lowest credit card limit you can get? Typically around $300, though the amount varies depending on the issuer and the type of card. Here are some general points to consider:

• Secured credit cards: These typically have the lowest limits, often starting as low as $200 to $300, like the OpenSky® Plus Secured Visa® Credit Card. Secured cards require a cash deposit as collateral, which usually determines the credit limit.
• Student and starter cards: Designed for individuals with limited or no credit history, these cards often have low limits, generally ranging from $300 to $1,000.
• Unsecured cards for poor credit: You can find a $500 credit card limit with no deposit, like the Prosper Card, the Credit One Bank Platinum Visa for Rebuilding Credit, or the FIT Platinum Mastercard. Some unsecured credit cards for those with poor credit or limited credit history may offer limits as low as $300.
• Factors affecting credit limits: Credit card issuers determine limits based on factors such as your credit score, income, and credit history. Lower credit scores or limited credit histories often result in lower credit limits.

It's important to note that credit card limits can vary widely between different issuers and individual circumstances. If you’re starting with a low limit, responsible usage and timely payments can help increase your limit and build your business credit over time.

Access credit limits up to 30% higher than traditional credit cards with Ramp

Ramp is a corporate card and spend management platform that offers credit limits up to 30 times higher than our competitors. That's because we use factors like sales data and cash in the bank to determine spending limits, instead of looking at your credit score.

Ramp lets you issue unlimited free employee cards, and you can set spending limits to keep every member within the budget. AI insights help you spend smarter with little effort, and automation makes it faster than ever to close your books without human error.

Ramp cards have no annual fees, foreign transaction fees, or interest, because your card balance must be paid in full each month. There's also no credit check or personal guarantee required—all you need is a registered business and enough cash on hand to qualify.