: How does a no-limit charge card affect your credit score? I have been reading recently about how credit scores are calculated, and it seems that the ratio of available credit to used credit (ie, debt) plays a large role.

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Apparently it is up to the credit card company on how they want to report your available balance.

Another disadvantage to the no-limit
credit card may not be apparent to
most people, but it is something noted
by organizations like The Motley Fool,
which is expert in many issues of
finance and investment. Part of your
credit score, about 30%, considers
the amount of money you have borrowed,
and the limit on your present credit
cards. A no-limit credit card company
may report your limit as [CO] if you
have not used the card, or they may
report a maximum limit available to
you. They may not, nor are they
obligated, to report times when you
put tons of expenses on a credit card
and then paid them off.

While some companies will report your
timely payments and paid off amounts,
others simply report an extremely low
limit. For instance if you spent 0
US Dollars (USD), your limit might be
considered 0 USD, or it may merely
be reported as zero. You’ll need to
check with a credit card company on
how they report payments and limits on
a no-limit credit card before you
obtain one. Some people who are
scrupulous are paying off their cards
at the end of each month suffer major
losses to their credit score, without
even realizing it, if their spending
ability is rated at zero, or their
payments don’t count toward showing
credit worthiness.

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