Flexible Spending Credit Cards such as the ones from Bank Of America allow you to go over your limit as long as you pay the amount you charged over your limit in full within a billing cycle.
These flexible credits are reported as “Flexible Credit” to the credit reporting agency’s and there is no set credit limit, at least for credit reporting purposes.
First you do need to recognize if you have one of these flexible spending credit cards. Just get your credit report and from the accounts section look at all the details on your credit cards, remember we are looking for something that says Flexible Credit. These type of cards are great but they have a major flaw that can kill your credit score, and that is because they do not report your credit limit. But there is a way to fix that. Once you have identified one of these flexible credit cards in your credit report what you may want to do is start using that card up to your max limit or make a major purchase. Once you have reached that limit you will need to wait until the next statement comes out, this is very important, do not make payment before the statement is out and shows that high balance. Only then you can pay off your Flexible Spending Credit Card.
Flexible spending credit card will incur huge transactions and your credit score will probably go down for one month but it should be back up on the next statement after you have paid the card. Now, what did you just do? Well, you established a credit limit. I have tested this after hearing about it from a friend and it actually worked. This is because the credit reporting company’s use the highest credit use as the credit limit if the cards are not reporting a credit limit.
Hope you enjoy your flexible spending credit card.
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