4 Credit Cards with No Spending Limit

Life can be unpredictable, and you never know exactly what you may need to spend money on tomorrow. In these situations, you may suddenly need more spending power on your credit cards than you previously anticipated. Fortunately, there are credit and charge cards that allow you to make the charges you need.

If your credit score is good enough, you might be able to score an “unlimited credit card”—one without a preset spending limit. That’s not a free pass to go on a months-long shopping spree, of course, as these credit cards technically do have some limitations. But they can be a flexible way to manage your finances, especially if you manage large monthly expenses or travel a lot. Find out more about credit cards with no limits below and whether one might be right for you.

What a No Limit Credit Card Really Means

The phrase “no limit credit card” is a bit misleading. Technically, all credit cards have limits. It’s not in the interest of lenders to allow card holders to drive up balances with no end in sight.

When people talk about unlimited credit cards, then, they usually mean one of two things. First, they could mean a credit card with a very high limit—one you’d be unlikely to hit in the normal course of spending if you’re regularly paying off the card. These types of cards include exclusive invitation-only “black cards.”

Second, and more commonly, they mean cards with no preset or published limits. Cardholders on these accounts are given a limit that’s unique to them, and it’s based on factors such as creditworthiness, income, and how long you have had an account. The credit limit might even fluctuate as you demonstrate continued or increased creditworthiness.

How to Determine if No Limit Credit Cards Are Right for You

Typically, these cards require good or excellent credit, so they aren’t something everyone can qualify for. The most exclusive cards with no preset spending limits are available only to individuals who receive an invite.

Cards with especially high credit limits or extremely flexible limits may also not be the right choice for someone who is in financial distress or already struggling to manage debt. It’s an unfortunate paradox that if you really need the larger credit line, you might be at greater risk of running up the credit card balance and digging yourself deeper in debt—and therefore unlikely to be approved for the larger credit line.

Need a card for fair or poor credit? We’ve got you covered.

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Alternatives to No Limit Credit Cards

If you don’t have great credit, you might want to consider a different option, such as a balance transfer card. If your credit is good enough, you can get a balance transfer card with a preset limit that lets you transfer high-interest debt and pay it off faster at 0% interest for a specific period of time.

If you’re doing well financially and would like the flexibility of a credit card with a high limit without the temptation of ongoing debt, you might consider a charge card. Charge cards are a type of credit card—often with high limits—that you have to pay off each billing cycle.

4 High Limit or No Limit Credit Cards to Consider

If a high limit card does sound like a good idea, you’ll want to research available options and choose the best one for your needs and preferences. Here are four to consider.

1. Chase Sapphire Preferred

Chase Sapphire Preferred® Card

Apply Now

on Chase’s secure website

Card Details
Intro Apr:
N/A


Ongoing Apr:
15.99% – 22.99% Variable


Balance Transfer:
15.99% – 22.99% Variable


Annual Fee:
$95


Credit Needed:
Excellent-Good

Snapshot of Card Features
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases.
  • 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
  • Earn 2x total points on up to $1,000 in grocery store purchases per month from November 1, 2020 to April 30, 2021. Includes eligible pick-up and delivery services.

Card Details +

  • Type: Rewards credit card
  • Credit Needed: Excellent,Good
  • Ongoing APR: 15.99% – 22.99% Variable
  • Signup bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.. That’s $750 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases.
  • Rewards: 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide
  • Annual fee: $95

Once you’re approved for the Chase Sapphire Preferred card, Chase will designate a credit access line for your account. However, you are permitted to exceed the account on a case-by-case basis. And when you do exceed this amount, you will not be charged an over-limit fee. The decision to allow you to charge beyond your credit access line is based on your payment history, your income, and other factors.

2. American Express® Gold Card

American Express® Gold Card

Apply Now

on American Express’s secure website

Card Details
Intro Apr:
N/A


Ongoing Apr:
See Pay Over Time APR


Balance Transfer:
N/A


Annual Fee:
$250


Credit Needed:
Excellent-Good

Rates and Fees

Snapshot of Card Features
  • Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
  • Earn 4X Membership Rewards® Points on Restaurants worldwide, including takeout and delivery.
  • Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.

Card Details +

  • Type: Rewards
  • Credit Needed: Excellent,Good
  • Ongoing APR: See Pay Over Time APR
  • Signup bonus: 60,000 Membership Rewards® points if you spend $4,000 on eligible purchases with your new card within the first 6 months.
  • Rewards: Earn 4X Membership Rewards® points at U.S. supermarkets or at restaurants, including takeout and delivery, and 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • Annual fee: $250

The American Express® Gold card is a card with a high-limit. With its Pay Over Time feature, this Amex card allows eligible charges of $100 or more to be carried across statements with interest. Other charges are due each month. You also get up to $120 in dining credits a year by earning up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.

3. Mastercard Black Card

Mastercard® Black Card™

Apply Now

on Luxury Card’s secure website

Card Details
Intro Apr:
N/A


Ongoing Apr:
14.99%


Balance Transfer:
0% introductory APR for the first fifteen billing cycles following each balance transfer that posts to your account within 45 days of account opening. After that, your APR will be 14.99%.


Annual Fee:
$495 ($195 for each Authorized User added to the account)


Credit Needed:
Excellent

Rates and Fees

Snapshot of Card Features
  • Patented black-PVD-coated metal card—weighing 22 grams.
  • 2% value for airfare redemptions with no blackout dates or seat restrictions. 1.5% value for cash back redemptions. Earn one point for every one dollar spent.
  • 24/7 Luxury Card Concierge®—available by phone, email and live mobile chat. Around-the-clock service to help you save time and manage tasks big and small.
  • Exclusive Luxury Card Travel® benefits—average value of $500 per stay (e.g., resort credits, room upgrades, free wifi, breakfast for two and more) at over 3,000 properties.
  • Annual Airline Credit—up to $100 in statement credits toward flight-related purchases including airline tickets, baggage fees, upgrades and more. Up to a $100 application fee credit for the cost of TSA Pre✓® or Global Entry.
  • Enrollment in Priority Pass™ Select with access to 1,300+ airport lounges worldwide with no guest limit. Includes credits at select airport restaurants for cardholder and one guest.
  • Cell phone protection for eligible claims of up to $1,000 each year. Plus additional World Elite Mastercard® benefits.
  • Annual Fee: $495 ($195 for each Authorized User). Terms and conditions apply.

Card Details +

  • Type: Rewards/Cash Back
  • Credit Needed: Excellent
  • Ongoing APR: 14.99%
  • Sign up bonus: n/a
  • Rewards: Earn redemption cash back in the value of 2% if you redeem on airfare or 1.5% if you redeem for cash back.
  • Annual fee: $495 ($195 for each Authorized User added to the account)

One of three products offered by Luxury Card, the Mastercard Black Card is truly luxurious. There is no official minimum starting limit for this card—but that flexibility comes with a cost. The annual fee is steeper than many can afford, but the card comes with $100 in airline credit and $100 in TSA Pre-check application credit every year, Exclusive luxury travel perks, and around-the-clock access to a concierge. It also includes a full range of traveler perks. Coupled with the rewards, this card can pay for itself when used by frequent travelers.

4. American Express Blue Cash Preferred Card

Blue Cash Preferred® Card from American Express

Apply Now

on American Express’s secure website

Card Details
Intro Apr:
0% for 12 months on purchases


Ongoing Apr:
13.99%-23.99% Variable


Balance Transfer:
N/A


Annual Fee:
$95


Credit Needed:
Excellent-Good

Rates and Fees

Snapshot of Card Features
  • Earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • $95 Annual Fee.
  • Terms Apply.

Card Details +

  • Type: Cash Back
  • Credit Needed: Excellent,Good
  • Ongoing APR: 13.99%-23.99% Variable
  • Sign up bonus: Earn a $250 statement credit after you spend $1,000 in purchases on your new card within the first 3 months.
  • Rewards: 6% cash back at U.S. supermarkets and some streaming services, up to $6,000 per year, then 1%; 3% cash back when spending at gas stations or on public transit; and 1% cash back on other purchases.
  • Annual fee: $95

The American Express Blue Cash Preferred® card comes with a lot of standard Amex benefits. There’s no overlimit fee, and its “Plan It” features allow you to create monthly payment plans with a fixed finance charge each month, rather than the ongoing APR.

No Limit Credit Cards and Your Credit Score

Paying on time and keeping your balance low is as important with these types of cards as with any other card. But you also need to consider your revolving credit utilization. Since these cards may not have a set or published limit, it’s important that you understand what the actual limit is and how it’s being reported. Check your credit report to see what limit is being reported so you know whether your credit utilization is high. Charge cards may not affect your utilization rate at all.

If you really want to dig in to your credit reports and the factors affecting your credit scores, consider signing up for ExtraCredit. ExtraCredit lets you access this information from all three credit bureaus whenever you want. That helps you best manage all of your debt, whether you have an unlimited credit card or not.

Sign Up Now

At publishing time, the Chase Sapphire Preferred, American Express Gold, Mastercard Black, and American Express Blue Cash Preferred cards are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for either of these cards. However, this relationship does not result in any preferential editorial treatment.

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

The post 4 Credit Cards with No Spending Limit appeared first on Credit.com.

Source: credit.com

Your Guide to Claiming a Legit Home Office Tax Deduction

I’d bet that on just about every city block or long country road, someone is operating a business from their residence. According to the U.S. Small Business Administration, about 50 percent of businesses are home-based, with a larger percentage (60 percent) working as solopreneurs with no employees.

Having a home-based business is one of the easiest and least risky ways to become an entrepreneur, test your business ideas, and increase your income. No matter if you run a business full-time or as a side gig, claiming the home office deduction can significantly reduce your taxes.

No matter if you run a business full-time or as a side gig, claiming the home office deduction can significantly reduce your taxes.

I received an email from John, who says, “My New Year's resolution is to earn more money working during my off-hours and on weekends. Since the work will likely entail making deliveries for different mobile apps, I’m not sure if it qualifies me for the home office tax deduction. Can you explain more about it?”

Thanks for your great question, John! In this post, I’ll give an overview of the home office deduction. You’ll learn who qualifies, which expenses are deductible, and how to legitimately claim this money-saving tax break no matter what type of business you have.

Who can claim the home office tax deduction

If you work for yourself in any type of trade or business, either full- or part-time, and your primary office location is your home, you have a home business. The designation applies no matter whether you sell goods and services, are a freelancer, consultant, designer, inventor, Uber driver, or dog-walker.

If you work for yourself in any type of trade or business, either full- or part-time, and your primary office location is your home, you have a home business. 

You can have a home-based business even if you’re like John and mostly earn income away from home. This is common for many trades and solopreneurs, such as musicians, sales reps, and those working in the gig economy. If you’re self-employed and do administrative work like scheduling, invoicing, communication, and recordkeeping at home, you have a home business.

Note that employees who work from home can’t claim a home office deduction. W-2 workers used to be allowed to include certain expenses if they itemized deductions. But tax reform took away that benefit starting with the 2018 tax year.

The home office deduction is available for any self-employed person no matter whether you own or rent your home, with the following two requirements:

  1. Your home office space is used regularly and exclusively for business
  2. Your home office is the principal place used for business

You must regularly use part of your home exclusively for conducting business. For example, if you use a guest room in your house or a nook in your studio apartment to run your business, you can take a home office deduction for the space.

You don’t need walls to separate your office, but it should be a distinct area within your home. The only exception to this “exclusive use” rule is when you use part of your home for business storage or as a daycare. In these situations, you can consider the entire space an office for tax purposes.

Additionally, your home must be the primary place you conduct business, even if it’s just the administrative work you do. For example, if you meet with clients or do work for customers away from home, you can still consider the area of your home used exclusively for business as your home office.

Your home doesn’t have to be the only place you work to qualify for the deduction. You might also work at a coffee shop or a co-working space from time to time.

You could also consider a separate structure at your home, such as a garage or studio, your home office if you use it regularly for business. Also, note that your home doesn’t have to be the only place you work to qualify for the deduction. You might also work at a coffee shop or a co-working space from time to time.

RELATED: How to Cut Taxes When You Work From Home

Expenses that are eligible for the home office tax deduction

If you run a business from home, two types of expenses are eligible for the home office deduction: direct expenses and indirect expenses.

Direct expenses are the costs to set up and maintain your office. For instance, if you work in a spare bedroom, you might decide to install carpet and window treatments. These expenses are 100 percent deductible, no matter the size of the office.  

Indirect expenses are costs related to your office that affect your entire home. They’re partially deductible based on the size of your office as a percentage of your home. 

For renters, your rent, renters insurance, and utilities are examples of indirect expenses. You’d have these expenses even if you didn’t have a home office.

For homeowners, you can't deduct the principal portion of your mortgage payment, which is the amount borrowed for the home. Instead, you’re allowed to recover a part of the cost each year through depreciation deductions, using formulas created by the IRS.

Other indirect expenses typically include mortgage interest, property taxes, home insurance, utilities, and maintenance. Allowable indirect expenses actually turn some of your personal expenses into home office business deductions, which is fantastic!

Allowable indirect expenses actually turn some of your personal expenses into home office business deductions, which is fantastic!

However, expenses that are entirely unrelated to your home office, such as remodeling in other parts of your home or gardening, are never deductible. So, your ability to deduct an expense when you’re self-employed depends on whether it benefits just your office (such as carpeting and wall paint) or your entire home (such as power and water).

Also, remember that business expenses unrelated to your home office—such as marketing, equipment, software, office supplies, and business insurance—are fully deductible no matter where you work.

How to claim the home office tax deduction

If you qualify for the home office deduction, there are two ways you can calculate it: the standard method or the simplified method.

The standard method requires you to determine the percentage of your home used for business. You divide the square footage of the area used for business by the square footage of your entire home.

For example, if your home office is 12 feet by 10 feet, that’s 120 square feet. If your entire home is 1,200 square feet, then diving 120 by 1,200 gives you a home office space that’s 10 percent of your home. That means 10 percent of the qualifying expenses of your home can be attributed to business use, and the remaining 90 percent is personal use. If your monthly power bill is $100 and 10 percent of your home qualifies for business use, you can consider $10 of the bill a business expense.

To claim the standard deduction, use Form 8829, Expenses for Business Use of Your Home, to figure out the expenses you can deduct and then file it with Schedule C, Profit or Loss From Business.

The simplified method allows you to claim $5 per square foot of your office area, up to a maximum of 300 square feet. So, that caps your deduction at $1,500 (300 square feet x $5) per year.

The simplified method truly is simple because you don’t have to do any record-keeping, just measure the space and include it on Schedule C. It works best for small home offices, while the standard method is better when your office is larger than 300 square feet. You can choose the method that gives you the biggest tax break for any year.

But no matter which method you choose to calculate a home office tax deduction, you can’t deduct more than your business’ net profit. However, you can carry them forward into future tax years.

As you can see, claiming tax deductions for your home office can be complicated. I recommend that everyone who’s self-employed use a qualified tax accountant to maximize both home office and business tax deductions.

Yes, professional advice costs money. But it’s well worth it, and it usually saves money in the long run when you know how to take advantage of every legit tax deduction.

Source: quickanddirtytips.com

Tipping Etiquette in the Time of Coronavirus: How Much Is Enough?

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Delivery workers at restaurants, grocery stores, and other essential businesses provide a lifeline to homebound shoppers while the highly infectious and deadly coronavirus circulates, so you might be wondering: When do I need to leave a tip? And how much gratuity is enough?

From curbside pickup to alcohol delivery, there are many services that could warrant a tip, but the etiquette on tipping during a pandemic isn’t obvious.

“This is the time when we should be generous if we can, but there is no hard and fast rule for how much extra to give,” says Diane Gottsman, author of “Modern Etiquette for a Better Life” and founder of the Protocol School of Texas.

So, what does “generous” mean in dollars and cents? Follow these pointers to avoid an etiquette error the next time you go to leave a tip.

1. Always tip for delivery and takeout/curbside pickup

Whether you’re getting Mexican food delivered for Taco Tuesday or placing an order for delivery from your local cannabis dispensary, right now you should tip at least 15% to 20%, Gottsman says. The same goes for grocery or alcohol delivery.

If you’re picking up from a restaurant that started offering curbside pickup in the wake of the pandemic, leave a tip.

“The people that are outside are probably employees they’re trying to save from losing their job,” Gottsman says. “They’re probably working for gratuity but not a large hourly rate.”

But just how much should you tip for curbside or in-store pickup? That depends. While some etiquette experts suggest tipping the same 15% to 20% that you would tip for delivery, others say it’s OK to go lower.

“There is a difference between curbside pickup and actual delivery, and for delivery there’s more involved,” says Elaine Swann, a lifestyle and etiquette expert. “Anyone coming to your front door should get a little more money.”

Still, Swann suggests tipping at least 10% on pickup orders during a pandemic.

When it comes to grocery pickup, the etiquette is a bit more complicated.

“Grocers normally don’t allow their people to take tips; although in this scenario, they might have altered their policy,” Gottsman says. If you want to tip the curbside pickup person at your grocery store, ask first if a gratuity can be accepted.

Most of us aren’t in the habit of tipping drive-up window workers at fast-food restaurants, and that’s still OK, Gottsman says—those workers earn an hourly rate, and staffing the drive-up window is part of their regular job duties.

2. Tip just as generously regardless of who delivers

Whether you order your lunch directly from a restaurant or through a third-party delivery service like Grubhub or DoorDash, you should tip the delivery driver the same amount.

Gottsman suggests at least 15% to 20% here, too—although you might have noticed some delivery apps have a default tip set to 25%. If you’re able to swing it, it’s a nice way to thank the person facing the health risk to deliver essentials to you.

“Whether you’re ordering through a third-party service or the restaurant itself, the tip is intended for the person delivering it to you, so I think they should be treated equally,” Swann says.

Even if you have to pay extra for delivery through a third-party service, service fees shouldn’t cut into your tip. On that note …

3. A service or delivery fee is not a tip

When you see a delivery fee or service charge on your order total, that money doesn’t go to your driver—so don’t use it as an excuse to pinch pennies with the tip.

“A delivery fee covers other costs for the restaurant,” Gottsman says. “It’s really important not to confuse a delivery fee with a gratuity. They are two different things.”

4. Some workers can’t accept tips, but you can still offer a kind gesture

Right now, you might be feeling extra grateful for postal workers delivering mail and packages every day. But mail carriers aren’t allowed to accept cash tips or gifts worth more than $20 in value.

“What you could do for somebody you appreciate is leave a nice candy in the mailbox or a gift card for a cup of coffee,” Gottsman says.

What about your local boutique that’s started delivering home goods, or the pet supply store that’s delivering dog food? Many small retail businesses don’t expect tips, Swann says, but now is a great time to show gratitude by posting a glowing review online.

“Not only should we be patronizing our businesses, but we should be putting forth an effort to highlight our positive experiences,” she says. “If they can get that virtual high-five during this time, that would be very helpful.”

5. Be cautious with cash

For online or phone orders, you’ll likely add the tip when you provide your credit card information. But what about cash tips at a time when we’re all trying to eliminate unnecessary physical contact?

“If you do have to tip in cash, to put [workers] at ease, put the cash in an envelope in advance,” Swann says. “One of the core values of etiquette is to make sure we’re doing everything we can to put others at ease.”

And of course, if cash changes hands, sanitize or wash your hands before and after the interaction and follow Centers for Disease Control guidelines for maintaining safe social distance.

6. Tip on the total, not the subtotal

It’s the perennial debate: Should you tip on the subtotal before tax, or the total after tax?

“Just tip on the whole thing,” Gottsman says. As essential workers gear up in masks and gloves and take extra precautions to deliver food and necessities so the rest of us can stay home, now isn’t the time to be stingy.

“Do those few pennies matter? I think they matter to that person [you’re tipping],” she says.

7. Consider tipping contractors, fitness instructors, and others who go above and beyond

You probably wouldn’t normally tip a plumber or electrician who comes into your home, but if you can afford it, it’s not a bad idea, Gottsman says.

“If they come out in the middle of the night or they come out all masked and covered up, you might offer to give them some extra gratuity,” she says. “More than likely they will take it. … They aren’t having the businesses they normally have.”

If your favorite trainer or fitness instructor offers free workout plans or streaming classes while gyms are closed, you may also want to send them a tip on Venmo or PayPal.

“If they’re not charging you but just doing it to keep you going, then why not go ahead and send them a little something?” Swann asks.

8. When in doubt, just do what you can

This is a tough financial time for many people. If tipping above and beyond your normal amount feels out of reach, don’t beat yourself up—just do what’s in your budget.

“The bottom line is, we give what we can afford at this time,” Gottsman says. “Some people are not impacted at all financially, and some people don’t have jobs. To say across the board that everyone should tip more would be unfair.”

The post Tipping Etiquette in the Time of Coronavirus: How Much Is Enough? appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com