Chase Bank notified me that they will be adding World MasterCard benefits to my Chase Freedom MasterCard credit card.
That means that my Chase Freedom Credit Card will now provide a credit access line instead of a credit limit.
What is the Difference between a Credit Access Line and a Credit Limit?
Here is how Chase Bank defines the difference between a credit limit and a credit access line for their credit cards, according to the updated terms in my card member agreement.
A credit limit sets a specific amount that an account can borrow.
A credit access line gives you the ability to charge over your credit access line and not be charged an overlimit fee.
The credit access line may also be referred to as a revolving credit amount.
How Much is Your Credit Access Line?
The credit access line for your Chase credit card account will be posted on your monthly billing statement.
Your credit access line may be canceled, changed, or restricted at any time.
How Does a Credit Access Line Work?
Your credit access line is the maximum amount upon which you may defer payment, which means that you can revolve, or carry from month-to-month, transactions adding up to your total credit access line.
Each charge that causes your balance to exceed your credit access line will be evaluated based on your account spending and payment history as well as your experience with other creditors.
It’s important to note that each transaction is considered for approval on an individual basis, including those above the credit access line, and Chase may not approve all transactions.
Transactions that exceed your revolving credit access line will be included in your minimum payment calculation each month.
What’s the Benefit of a Credit Access Line?
A credit access line can give you a flexible spending option in an emergency or some extra purchasing power in any situation.
Since Chase individually approves all transactions, there is no guarantee that you will be able to exceed the credit access line.
However, if your account history is positive, it could be a nice option to have, especially during a travel emergency or if you just want to fit a large purchase on your credit card to maximize your rewards.
I also have an American Express Credit Card with No Preset Spending Limit, but I have never personally found a reason to exceed my revolving credit limit.
Having a credit access line is a nice benefit, but you’re still responsible for balances on your account, of course, including amounts charged in excess of your credit access line.