The best credit cards to maximize your entertainment spending - The Points Guy (2023)

FAQs

The best credit cards to maximize your entertainment spending - The Points Guy? ›

According to the Capital One website, entertainment purchases include tickets to movie theaters, plays, concerts, sporting events, tourist attractions, theme parks, aquariums, zoos, dance clubs, bowling alleys, pool halls, record stores and video rental locations.

According to the Capital One website, entertainment purchases include tickets to movie theaters, plays, concerts, sporting events, tourist attractions, theme parks, aquariums, zoos, dance clubs, bowling alleys, pool halls, record stores and video rental locations.

The smartest way to use a credit card that has rewards is to charge everything that you can afford to it and pay it back quickly (by the due date each month). Avoiding interest is key to maximizing the value of a rewards credit card, since credit card interest rates are higher than credit card rewards rates.

To simplify the process of comparing rewards programs, we analyzed the value of credit card points across the major U.S. credit card issuers. Based on our results, Chase Ultimate Rewards® points are worth the most, offering up to 1.5 cents per point with certain cards in the program.

The minimum payment mindset

Here's how most people get trapped in credit card debt: You use your card for a purchase you can't afford or want to defer payment, and then you make only the minimum payment that month. Soon, you are in the habit of using your card to purchase things beyond your budget.

If there's one card most associated with celebrities, it's the American Express Business Centurion Card, often referred to as the Amex Black Card. It's an invite-only card, and although you don't need to be famous to get it, the spending requirement for an invite is rumored to be at least $250,000 per year.

The tax code states that “expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees” qualify for the 100 percent deduction. Dinner provided for employees working late is 50% deductible.

As a small business owner, you may entertain clients or customers. While this is often a business necessity, the costs can really add up. You'll be glad to know that the IRS allows you to take a deduction for 50 percent of your qualifying business meal entertainment expenses.

Only have a credit card if you pay in full each month.

This is the single most important rule of credit cards. Your best financial move is to repay your credit card balance in full each month. Otherwise, you will be subject to high interest charges.

What is the #1 rule of using credit cards? ›

The most important principle for using credit cards is to always pay your bill on time and in full. Following this simple rule can help you avoid interest charges, late fees and poor credit scores. By paying your bill in full, you'll avoid interest and build toward a high credit score.

Paying at least the minimum amount on your credit card each month is a good way to build (or maintain) a good credit score. Paying on time will also help you avoid getting slapped with fees.

In most cases, 50,000 Chase points are worth $500 for travel, cash back, or gift cards. The same 50,000 points can be worth $625 with the Chase Sapphire Preferred® Card or Ink Business Preferred and $750 with the premium Chase Sapphire Reserve®.

At a minimum, 100,000 Chase Ultimate Rewards® are worth $1,000 in cash back or gift cards. Several cards offer a travel redemption bonus that can make the balance worth as much as $1,250. There are two Chase business credit cards with $1,000 signup bonuses.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

For rich folks, credit cards are a tool to manage their finances and simplify their spending. Credit cards give people a convenient way to spend, and that includes the wealthy. They often use credit cards to make large purchases or to pay for travel and entertainment expenses.

This goes without saying, rich people have a huge credit limit and they end up carrying multiple cards as well. As their monthly spending on their credit card is a lot, not only do they end up earning huge reward points but also their bank balance remains untouched so they earn interest on that as well.

Kim Kardashian and Oprah Winfrey, meanwhile, have used the American Express Centurion, which is said to enable cardholders to buy anything they desire, no matter how seemingly inaccessible.

The wealthiest are known for using the most exclusive credit cards -- luxury credit cards and so-called black credit cards.

What is the most Recognised credit card in the world? ›

What is the most prestigious credit card? One of the world's most prestigious credit cards is the Centurion® Card from American Express*.

In 2023, the meal per diem is $74 a day for high-cost areas in the continental United States and $64 a day for lower-cost areas.

With the ratification of the 2018 Tax Cuts and Jobs Act (TCJA), aka the Trump Tax Plan, you can no longer deduct entertainment expenses. The ticket cost is no longer deductible if you like to entertain at sporting events or treat your clients to a Broadway show.

The following expenses are not deductible:

Sporting event tickets. Transportation to/from a restaurant for client business meals. Club memberships and club-related expenses. Meals during entertainment that are not listed separately on the invoice.

CRA rules on meals and entertainment expenses

According to the Canada Revenue Agency, the maximum you can deduct for food, beverage, and entertainment expenses is 50% percent of the lesser of the following amounts: The amount you paid for the costs, or. A sum that, given the circumstances, is fair.

Claiming coffee as a business expense

The deduction is usually 50% of the cost. Thanks to the Consolidated Appropriations Act of 2021, business meals at a restaurant that were once 50% deductible have been increased to 100% for the years 2021 and 2022.

Meal entertainment valuation methods

The 50:50 split method – the taxable value is 50% of your total expenditure on all meal entertainment for all people (irrespective of whether they're employees, clients or others) during the FBT year.

Your business can generally deduct the cost of business meals at 50% beginning in 2023 or for tax years prior to 2021 if: The business owner or employee is present. The cost of the meal or beverages isn't "lavish or extravagant." The meal is with a business contact (such as a customer, employee, vendor, or consultant).

For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

If you're claiming actual expenses, things like gas, oil, repairs, insurance, registration fees, lease payments, depreciation, bridge and tunnel tolls, and parking can all be deducted." Just make sure to keep a detailed log and all receipts, he advises, and keep track of your yearly mileage and then deduct the ...

What are two things that you should never buy with a credit card? ›

2/3/4 Rule

Here's how the rule works: You can be approved for up to two new credit cards every rolling two-month period. You can be approved for up to three new credit cards every rolling 12-month period. You can be approved for up to four new credit cards every rolling 24-month period.

There is no universal number of credit cards that is “too many.” Your credit score won't tank once you hit a certain number. In reality, the point of “too many” credit cards is when you're losing money on annual fees or having trouble keeping up with bills — and that varies from person to person.

At the opposite end of the spectrum, a credit utilization ratio of 80 or 90 percent or more will have a highly negative impact on your credit score. This is because ratios that high indicate that you are approaching maxed-out status, and this correlates with a high likelihood of default.

The Takeaway

The 15/3 credit card payment rule is a strategy that involves making two payments each month to your credit card company. You make one payment 15 days before your statement is due and another payment three days before the due date.

Experts generally recommend maintaining a credit utilization rate below 30%, with some suggesting that you should aim for a single-digit utilization rate (under 10%) to get the best credit score.

The Chase 5/24 rule is an important consideration for anyone applying for a Chase credit card. Chase will likely deny your credit card application if you've opened five or more new cards in the past 24 months. This rule applies to all Chase credit cards, including co-branded and small business cards.

The 5/24 rule states that if you have been approved five or more credit cards in the last 24 months, you will automatically be denied for any Chase credit card products. This is to prevent consumers from applying to credit cards solely for the welcome bonus and closing the account before the annual fee comes due.

Worst redemption option

1 cent for eligible travel and dining. Points are worth less than 1 cent when redeemed for cash or gift cards. 1.25 cents for travel. 1 cent for cash and gift cards, though the program agreement notes that there may be redemption options with lower values.

How much money is 1 point credit card? ›

Generally, travel miles and points are worth 1 cent each.

As a general guide, the point value can range from 0.5 cents per point to more than 2 cents per point, depending on how you redeem them. Therefore, 1 million AMEX points could be worth anywhere from $5,000 to $20,000 or more, depending on the redemption method.

80,000 Capital One miles are worth an average of $560, depending on how you redeem them. Capital One miles are worth the most when redeemed for travel, but you can also redeem for a statement credit, a check or gift cards, among other options.

This is already one of the top travel credit cards, and the increased welcome offer makes it even more enticing. After all, 80,000 points are worth up to $1,000 on travel when you redeem through Chase Ultimate Rewards^®, and potentially more when redeemed through one of Chase's transfer partners.

Credit experts advise against closing credit cards, even when you're not using them, for good reason. “Canceling a credit card has the potential to reduce your score, not increase it,” says Beverly Harzog, credit card expert and consumer finance analyst for U.S. News & World Report.

There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.

Having too many open credit lines, even if you're not using them, can hurt your credit score by making you look more risky to lenders. Having multiple active accounts also makes it more challenging to control spending and keep track of payment due dates.

Millionaires are more likely to have multiple credit cards compared to the average American. Seventy percent of Americans with a net worth over $1 million have two or more credit cards, compared to 41% of Americans with a net worth under $1 million.

Key points. 70% of millionaires carry two or more credit cards, which is more than recommended. Millionaires trust the same credit card issuers as regular Americans.

What bank does a millionaire use? ›

Citi Private Bank is the private banking department of Citibank. Their services are reserved for worldly and wealthy individuals as well as their families. While eligible clients can get deposit accounts and retirement accounts as you'd find at any other bank, there are also many specialized products and services.

"And merchants are willing to pay that premium because American Express is bringing them the most affluent, biggest spenders." Because of its reliance on discount fees, big spenders are AmEx's most important asset.

Rule #1: Always pay your bill on time (and in full) The most important principle for using credit cards is to always pay your bill on time and in full. Following this simple rule can help you avoid interest charges, late fees and poor credit scores.

The rarest credit card in the world is likely the Centurion® Card from American Express, also known as the “Black Card.” This card is available by invitation only, and you will reportedly need to spend at least $250,000 per year on other Amex credit cards and have an income of $1 million+ to get it.

Most of the time when people refer to a black card, what they mean is the luxe American Express Centurion card. Due to the card's exclusivity, it's become a symbol of wealth and the ability to buy just about anything your affluent heart desires.

The American Express Centurion Card, colloquially known as the Black Card, is a charge card issued by American Express. It is reserved for the company's wealthiest clients who meet certain net worth, credit quality, and spending requirements on its gateway card, the Platinum Card.

There is no spending limit with the Amex Black Card. However, balances must be paid off in full every month.

The most exclusive credit card is the American Express Centurion Card, also known as the Amex Black Card. It is reportedly reserved for people who spend at least $100,000 per year, and an invitation is needed to apply.

High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit.

According to Wikipedia, the two private banks in Canada with the most assets under management are RBC Wealth Management and BMO Wealth Management. So since BMO and RBC are so popular for private banking, you could say they are the best private bank in Canada.

Where do the rich put their money? ›

Many millionaires keep a lot of their money in cash or highly liquid cash equivalents. They establish an emergency account before ever starting to invest. Millionaires bank differently than the rest of us. Any bank accounts they have are handled by a private banker who probably also manages their wealth.

The highest credit card color is black, in large part because of the ultra-exclusive Centurion® Card from American Express, which is also known as the “Black Card” due to its color.

Salary Needed for Amex Platinum Credit Card

If you make nearly $100,000 a year and have good credit, you should have no issue getting approved. But, applicants with annual incomes as low as $40,000 have also been approved if they have a low debt-to-income ratio and pay their other credit cards in full every month.