My American Express card has no spending limit. How do the credit bureaus determine my utilization rate?
On cards with no preset spending limits, credit bureaus report your credit limit using the highest balance you have ever had on your credit card. This throws your utilization rate out of whack if you generally spend the same amount from month to month. To avoid exceeding your target rate, you can try this tactic: Spend one month hiking up your balance as high as possible, thereby increasing the highest balance to a mark high enough that you do not exceed the 30 percent utilization rate in subsequent months.
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