Fact #1: There is no such thing as a credit card with no limit
One of the main goals of this blog is to provide sound
advice and to countervail misinformation spread in large part by an industry
that thrives and profits from customer confusion. Therefore, I have decided to begin an
enumerated series of posts, explaining and dispelling some of the most common
misunderstandings that customers have. (They are in no particular order.)
Fact #1: There is no such
thing as a credit card with no limit.
Credit card companies are masters of marketing ploys—or what
some consumer advocates simply would call outright lies. Ranging from the 0%
introductory rate to the no annual fee, all of these shrewd tactics are part of
a strategy to make the sale.
One of the most appealing credit card tricks is the credit
card with no limit. It’s brilliant; it
appeals to the big and glaring egos of primarily the upper middle class which
loves the idea of having no restriction on its consumption. Customers who fall
for this trick often have a high sense of entitlement and seek self-validation and
public admiration through exclusive privileges. American Express, which
understands its market well, has used the no limit lure for years.
Here is how it really works and what it really means: A
customer does not have a set credit
limit because it is dynamic. In other
words, it is always changing. A rather
complex algorithm takes into account a customer’s real-time spending habits,
income, credit history, and other factors to determine a credit limit at a
particular time. Many customers misinterpret this feature, thinking that they
can buy whatever they want and at whatever price.
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Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
I am proud to say that this blog's unyielding demand for change led to an important 
