How to Qualify for a Credit Card With No Preset Spending Limit

Credit cards without pre-set spending limits are actually charge cards. Theoretically, you are allowed to charge as much as you want in a given month, with the requirement that you pay the balance after receiving your statement. The card company will monitor your spending habits, payment history and credit score as it determines how much to allow you to charge. To qualify for a card without pre-set limits, you generally need a good credit score, a record of stable employment and sufficient income. Income needed will vary by the card company and type of card.

Instructions

1

Establish a good relationship with a bank. A banking relationship isn't required to obtain a credit card without a pre-set spending limit. However, the cards generally are considered harder to qualify for than a regular MasterCard or Visa. Having a good relationship with a bank through mortgage, checking, savings or retirement accounts can improve your overall credit profile with that bank and make you a better candidate for a new credit card.

2

Get your credit report and score. Obtain a free copy of your report from the web site www.annualcreditreport.com. The site was established by Experian, Equifax and TransUnion--the three nationwide credit bureaus--to provide free credit reports under the terms of the federal Fair Credit Reporting Act. View and print your report immediately at the web site or see instructions on the homepage for ordering by telephone or mail. Included with the report will be instructions for separately ordering your credit score.

3

Review your credit score. According to the web site Bankrate.com, a credit score of 620 is considered at the bottom of "good" credit. You should have a score of at least 620 to qualify for a charge card without pre-set spending limits. Ideally, your score should be as close to 700 as possible, or higher. If your score is below 620, postpone your plans to apply until your credit situation improves.

4

Remove any inaccurate information from your report by writing a letter to the credit bureau pointing out the mistake. Inaccurate information, such as an erroneous federal tax lien, can disqualify you from approval even if your credit score is excellent. State why the information is wrong and demand that it be removed from your report or corrected. By federal law, the credit bureau will have about 30 days to fix the error after receiving your letter. Mail your letter to the credit bureau at its address on your report.

5

Check your credit report for any accounts showing as past due or delinquent. Make payments to bring all active accounts current. Contact creditors or debt collectors to resolve delinquent accounts that were charged off or sold to debt collection agencies. Find telephone numbers for the creditors or debt collectors on your credit report alongside the delinquent account. Wait about 60 days for your report to be updated after you make payments.

6

Apply for your card.