Eight thousand bucks to charge this month -- what to apply for?

[805orbust]

I'll guarantee you one thing... you're getting approved for whatever you apply for.  An NFCU Platinum or US Bank Platinum will give you 0% and a low BT fee. I believe the Chase FF will come with 0% on purchases as well. Citi Premier works also. Pretty much I would just review the rewards structure and go for whatever sounds best. The way I'm thinking is that it's pretty much up to you as I'm not seeing you getting a denial or even a limit below say, 10k, even from Chase.

[pizzadude]

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@James3 wrote:

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If the zero percent interest over a 12+ month period is not what you want/need....pay the cash and save 5%.  If you don't want to use the cash, just maximize your cash back...there are several CCs that offer a sign on bonus or 'enhanced' cash back from an intro purchase period...but that 5% cash discount with the dentist is hard to beat....strictly from a 'cash back' perspective. I love my Alliant Signature Cash Back CC...2.5% Cash Back on everything when at the Tier 1 rewards level (up to 10k of spending per month). 

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I thought about opening a Chase Freedom Unlimited, but you're right, the dentist's 5% cash discount is hard to beat. Cash will be king in this case.

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100% agree with this, I'd take the $400 savings now since you have cash on hand to PIF.   

[RedKhaos]

Considering you're getting $400 off paying cash, I imagine there's a pretty narrow pool of available credit cards that have signup bonus that could beat that. I'd second earlier recommendations for the premier. It's effectively at least $700 cash for you. You also already have a Citi Double Cash. Even if you decide to PC it to Custom Cash, you can then get 2 Custom Cash a year down the line or keep the Double Cash and PC the premier. Citi has one of the least restrictive product changing systems so you'll likely find use from some of their cards no matter what.

[SouthJamaica]

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@James3 wrote:

Here's some additional details about my credit profile:

- Always PIF

- About 8k student loan debt

- No lates/black marks of any kind
- No Chase cards. I had a checking/savings account with them 15 years ago and closed both on good terms.
- All cards other than GM Card and Bilt have limits ranging from 13 - 24k

- No Discover card

All my cards are currently cash back cards, other than the Bilt and GM card:

(2002) FNBO Evergreen

(2003) Wells Fargo Signature

(2004) Marcus GM Card

(2016) BOA Custom Cash Rewards

(2020) Citi Double Cash (will likely product change to custom cash)

(2022) Wells Fargo Bilt

I don't apply for cards often and only recently started using my credit to take advantage of rewards/cash back/etc. The above list represents all cards I've ever applied for, aside from a Discover I closed when I was 19 for reasons I can't remember. I see a World of Hyatt card in my future, but I'd get a generic Chase card before that. I think Wells Fargo allows a Bilt card to be linked with a checking account so that amounts in excess of the credit limit can be debited and rewards can still be received.

I probably will not open a card just to sock drawer it, though the Citi premier. I'm on the conservative side with financial decisions and probably will not YOLO anything. The Citi Premier looks like a good option that I will need to research further. 

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I don't think it's wise to use a business card to pay a personal expense. The Ink is a business card.

It looks to me like you don't need any more cards.  But the Citi Premier is indeed an excellent card, and it goes well with the Double Cash. You can move your TYP's from the DC into the pool of TYP's of the Premier. And you can just convert your TYP's into cash if you like.

[BronzeTrader]

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@James3 wrote:

I need to spend $8000 this January 22 on a dental bill. I am considering applying for the Chase Ink Business Unlimited to take advantage of the sign up offer. I don't have any other business credit cards and am not sure whether this is a good strategy as my business needs are paltry. Also I don't know if I can get approved for a card and receive it that quickly. Are there any other credit card options I should consider? I'm open to ideas and looking for ideas. The dentist offers a 5% cash discount and I am not opposed to that option.

My best option from my collection of cards is using my Bilt card if I can get Wells Fargo to increase the limit on an account opened at the end of September 2022. My $10k limit won't be enough for rent and the dental bill. 

I am 1/6, 1/12, 1/24 with scores all above 800. Last card was opened Sept 29 of last year.

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The best use of that spend is to open one or two new cards (if the doctor can split the payment to two).  The best new card bonus offers are probably from AmEx and Chase.  AmEx busines gold has like 100k MR offer with $10k spend.  AmEx biz Plat has anywhere about 150K MR offer with $15k spend.  AmEx personal Gold and Plat have good offers too.  You already know the Chase Ink offers.  Even Citi has the 80k offer on the Premier card that may go away quickly.  Cap1 has the 75k Venture offer.  Theare are more.

If you are not looking for new card bonus, then look for cards that have spend offers.  Citi sears cards often have offers that give more than 10% return.  But you won't get offers right away from new cards.  So you'll have to look to see what offers you have on the table from your own cards.  The rotating category cards like Chase Freedom and Citi Custom won't help much due to the low spend limit each quarter.

The last one is to add to some reward program spend.  It does not seem that is the way you are heading to.

[BronzeTrader]

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@Spotsy wrote:

I would caution you on using a business CC for personal expenses.  Some business CCs have language in the agreements that frown on/ prohibit those type transactions.  A dental office is a not an easy transaction to pass as a business expense. :-) just be aware....

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True in some sense.  But a lot of businesses are small business and solo prop in nature.  Some self employed people do not even carry good insurance.  So I do not see any problem charging $8,000 dental expenses to small business card.  People can easily defend it.

Sure it does not seem right to charge $200 spend from Victoria Secret.  It is hard to defend that you bought some holiday gift for business purposes.

[BronzeTrader]

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@James3 wrote:

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If the zero percent interest over a 12+ month period is not what you want/need....pay the cash and save 5%.  If you don't want to use the cash, just maximize your cash back...there are several CCs that offer a sign on bonus or 'enhanced' cash back from an intro purchase period...but that 5% cash discount with the dentist is hard to beat....strictly from a 'cash back' perspective. I love my Alliant Signature Cash Back CC...2.5% Cash Back on everything when at the Tier 1 rewards level (up to 10k of spending per month). 

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I thought about opening a Chase Freedom Unlimited, but you're right, the dentist's 5% cash discount is hard to beat. Cash will be king in this case.

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It really depends on what card portfolio you have.  New card bonus can easily give more 10% or better.  Both Chase and Citi rotating category cards give you 5x which is higher than 5%.  BofA 321 cards with 1.75x give you 5.25%.  

But 5% is good.  

[pizzadude]

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@BronzeTrader wrote:

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@Spotsy wrote:

I would caution you on using a business CC for personal expenses.  Some business CCs have language in the agreements that frown on/ prohibit those type transactions.  A dental office is a not an easy transaction to pass as a business expense. :-) just be aware....

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True in some sense.  But a lot of businesses are small business and solo prop in nature.  Some self employed people do not even carry good insurance.  So I do not see any problem charging $8,000 dental expenses to small business card.  People can easily defend it.

Sure it does not seem right to charge $200 spend from Victoria Secret.  It is hard to defend that you bought some holiday gift for business purposes.

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I disagree with this as I think you're oversimplifying the issues, which are 1) using a business card to charge what may be perceived as non-business expenses, and 2) writing off $8K of dental work as a business expense. 

First issue - sure it's a credit card and you can in theory buy anything / anytime / anywhere with it but if you read the T&Cs on any business card it will state that it should only be used for legitimate business expenses.   Charges can be declined based on the amount or what they are occurring ;  worst case is that creditors would shut you down and close your account.  Not suggesting that would happen here but it's something to think about.

Second issue, are dental expenses deductible for a business ?  In some cases maybe but there are likely many more scenarios where personal medical expenses can't be justified as a business expense.   I'm neither a tax attorney nor a CPA so OP should probably seek professional advice if they're looking to do this. 

[BronzeTrader]

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@pizzadude wrote:

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@BronzeTrader wrote:

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@Spotsy wrote:

I would caution you on using a business CC for personal expenses.  Some business CCs have language in the agreements that frown on/ prohibit those type transactions.  A dental office is a not an easy transaction to pass as a business expense. :-) just be aware....

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True in some sense.  But a lot of businesses are small business and solo prop in nature.  Some self employed people do not even carry good insurance.  So I do not see any problem charging $8,000 dental expenses to small business card.  People can easily defend it.

Sure it does not seem right to charge $200 spend from Victoria Secret.  It is hard to defend that you bought some holiday gift for business purposes.

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I disagree with this as I think you're oversimplifying the issues, which are 1) using a business card to charge what may be perceived as non-business expenses, and 2) writing off $8K of dental work as a business expense. 

First issue - sure it's a credit card and you can in theory buy anything / anytime / anywhere with it but if you read the T&Cs on any business card it will state that it should only be used for legitimate business expenses.   Charges can be declined based on the amount or what they are occurring ;  worst case is that creditors would shut you down and close your account.  Not suggesting that would happen here but it's something to think about.

Second issue, are dental expenses deductible for a business ?  In some cases maybe but there are likely many more scenarios where personal medical expenses can't be justified as a business expense.   I'm neither a tax attorney nor a CPA so OP should probably seek professional advice if they're looking to do this. 

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I never said you deduct dental work as business expenses.  At least not straight like that.

First, for personal tax filing, some medical or dental expenses are deductible.  At least that was before.  Not sure about the tax code changes.  

Second, small business owners are allowed to set up own insurance plan or purchase some insurance policy.  Those are certainly considered business expenses.  

There are a lot of tax incentives from IRS to help small business owners.  It is up to each person to decide what the best route is to take care him or herself.  Small business owners are not covered like Dell or Google with very good corporate benefits.  

Third, with tax filing, for solo biz owner, the tax is passed through, combined with personal tax filing.  If the dental expense can be deducted as part of the  (small biz) dental health insurance plan, it is also related to the business insurance plan.  So I just do not see anything wrong with charging that expense to the small business credit card.

[BronzeTrader]

So if, as a small business owner, you set up your own health and dental insurance plans.  If you see you'll have large dental expense, you set up a very good plan.  You pay like $500 or $1,000 for it.  This dental insurance premium is business deductible.  And it has very low deductible.  Say $1,000 deductible.  I just make up all those numbers.

For the $8,000 dental expense, with that dental plan, $7,000 will be covered with the business dental plan.  $1,000 will be personal dedutible.  Clearly the $7,000 is related to the small business dental health insurance plan.  That can be clearly explained.