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You may have watched a movie in which a character pulls out a fancy black credit card and brags about how he has access to unlimited money. The reality is that there is no such credit card. Some credit cards do come with “no preset spending limit,” but even those cards have some sort of controls and restrictions.

When you have a credit card with no preset spending limit, each purchase is evaluated on a case-by-case basis for approval. As long as you are using the card responsibly and regularly paying down your balance, you shouldn’t have any problems with purchases being declined.

Do No-Limit Credit Cards Exist?

While most credit cards do come with specific credit limits, there are cards that intentionally have no preset spending limit. Those card holders never have to worry about managing their available credit. Instead, the issuer will evaluate each purchase as it’s made to determine whether to approve it. The issuer may also provide a tool where you can check beforehand to see if a purchase will be approved.

💡 Quick Tip: A SoFi Credit Card provides access to a line of credit. It’s essentially a short-term loan that you repay each month.

Where Does the Idea of No Limit Cards Come From?

To “average” people who stick to a budget and pay their bills each month, there is something aspirational about a magical no-limit credit card. If you have an average credit limit, you might wonder what it is like to not be encumbered with one. Pop culture plays into this common desire to know what it would be like to be obscenely rich and not have to worry about money.

The Myth of the Black Credit Card With No Limit

In pop culture, the no-limit credit card always seems to be black, and there are ultra-luxury black credit cards. For example, American Express has the Centurion Card, which is a black credit card that is only available by invitation. But while the Centurion card (and other similar cards) don’t come with a preset spending limit, that doesn’t mean there is no limit at all.

Recommended: What Is a Luxury Good?

Pros and Cons of Cards With High Spending Limits

Here’s a quick overview of some pros and cons of high limit credit cards:

💡 Quick Tip: A SoFi cash-back credit card is a great way to earn rewards without a complicated redemption process. Even better, SoFi doesn’t place limits on the amount of cash-back rewards you can earn.

What Does It Take to Have a High Limit Credit Card?

Most credit card issuers use a variety of factors when deciding both whether to approve you for a credit card and what credit limit to extend. Here are a few factors that may come into play:

A Good Credit Score

Most cards that come with no preset spending limit are considered premium or luxury credit cards. That means that you will likely need good or excellent credit to be approved.

Recommended: 8 Tips for Maintaining a Good Credit Score

A High Income

Another factor that can help you to get a high limit on a credit card is a relatively high income. Banks generally use an applicant’s income as one factor in determining a credit limit for a card. If you have a low annual income, a bank may be hesitant to issue you a credit card with a high spending limit.

An Existing Relationship With the Bank

Many banks are interested in building a relationship with their customers, especially ones they consider to be high-value. Showing that you are a loyal customer can encourage a bank to extend you additional credit. Ways to build your relationship with a bank might include opening checking or savings accounts, taking advantage of their credit card rewards program, or responsibly using existing accounts with them.

The Takeaway

While some credit cards come without a preset spending limit, all credit cards have some limitations in place. There is no publicly available credit card that will allow you to spend and spend with no consequences. If you have a card with no preset spending limit, the issuer will decide on a case-by-case basis whether to approve each purchase.

Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.

FAQ

Is there a credit card that has no limit?

There aren’t really credit cards with no limit at all (like you might see in the movies). But there are credit cards that don’t have a preset spending limit. Instead, the credit card issuer will evaluate your overall financial information to determine whether to approve any purchases. This might include your income, net worth, relationship to the bank, and previous spending and payment history.

How do people get no limit credit cards?

Most cards that come with no preset spending limit are luxury credit cards, which means that you’ll need to have good or excellent credit. Having a high income is another factor that can improve your odds of being approved. You might also consider strengthening your relationship with the issuing bank, like opening a checking account or other credit cards.

What does no limit credit card mean?

A no-limit credit card generally does not mean a credit card with absolutely no limit at all. Instead, many times people are referring to a credit card with no preset spending limit. When you have a card with no preset spending limit, you won’t have a specific available credit or credit limit — instead, the bank will determine whether to approve each transaction based on your overall financial information and/or past spending history.

Photo credit: iStock/Delmaine Donson

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Adult learners — students who are age 25 or older — are an increasingly common sight on college campuses. Going back to school (or attending for the first time) at a later date, however, comes with some challenges. One of the biggest is finding a way to cover the cost of your education, since you may not be able to rely on Mom and Dad to foot some or all of the bill.

Fortunately, there are plenty of ways to pay for college as an adult learner, from scholarships and grants to good old-fashioned student loans.

To Start, Look at Scholarships and Grants

Whether you’re starting school or going back to college, it’s always a good idea to look into scholarships and grants early in the fund-finding process. After all, these are financial aid options that the recipient typically isn’t responsible for paying back.

Although most scholarships won’t pay the entire cost of college, they can offset thousands of dollars in costs — and when it comes to an expense as hefty as education, every bit helps.

It’s a good idea to check with your prospective school’s financial aid office to see if the college offers any grants or scholarships for adult learners, but there are also third-party programs worth looking into. Consider adding these to your list.


💡 Quick Tip: Fund your education with a low-rate, no-fee SoFi private student loan that covers all school-certified costs.

Executive Women International Scholarship

Offered through local chapters of Executive Women International, the Adult Students in Scholastic Transition scholarship of $2,000 to $10,000 is awarded to “adults facing economic, social, or physical challenges who are looking to improve their situation through educational opportunities.”

For full application details, contact your local chapter.

Award From Imagine America

Aimed toward adults who are attending career or technical colleges for a career shift or returning to school after time away, Imagine America’s Adult Skills Education Program offers awards of around $1,000 yearly to students over the age of 19 who are enrolled in a participating college.

Application details and step-by-step instructions are available on the Imagine America website.

Jeannette Rankin Women’s Scholarship

Open to low-income women 35 or older who are pursuing a technical/vocational education, an associate’s degree, or a first bachelor’s degree at an accredited college, the Jeannette Rankin Women’s Scholarship Fund offers scholarships of $2,000-plus on a yearly basis.

Working Parent Award

Offering $1,000 to help with school costs, the Job-Applications.com Working Parent College Scholarship Award is open to parents who are full- or part-time students at a college or trade school, have a grade point average of 3.0 or higher, and work an average of 12 hours a week.

Applicants write a 600- to 1,000-word essay outlining “three keys to successfully balancing parenthood, working, and excelling in school.”

Single-Parent Scholarship

Custody X Change, a parent scheduling tool, offers three scholarships a year to single parents, who can receive up to $1,000 in college funding.

To apply, you’ll need to supply your unofficial college transcript or admissions letter along with a 400- to 500-word essay answering the question “How will you use your education to improve your family?” See eligibility and application details on the Custody X Change website.

There are many other adult-specific scholarships available, so it’s worth doing a Google search to look for more opportunities that might be a good fit for your situation.

Employee Education Benefits

If you’re employed, you may want to take a second look at that sheaf of paperwork HR sent you on your first day. These days, an increasing number of companies offer employee education benefits as part of their compensation package.

Three common types of benefits are tuition assistance, tuition reimbursement, and student loan repayment. Each of these works a little differently, but all of them can help offset the out-of-pocket costs of an education.

With tuition assistance, your employer may partner with specific colleges or universities to bring you discounted, or even free, classes — particularly if those classes will improve your performance at work.

Starbucks, for instance, is famous for its tuition assistance program, which covers 100% of employees’ out-of-pocket cost for first-time undergraduate students enrolled in Arizona State University’s online program.

Tuition reimbursement, on the other hand, means your company will repay you for out-of-pocket educational costs up to a certain limit.

Home Depot offers a tuition reimbursement program that allows employees to attend the university or college of their choice and receive up to $5,000 (for salaried employees), $3,000 (for full-time hourly workers) or $1,500 (for part-time hourly workers) per year.

Finally, some companies offer student loan repayment programs that help employees repay the loans they’ve taken out from third-party lenders.

Many of these programs have specific eligibility requirements, such as working a minimum number of hours or maintaining a certain GPA, so be sure to double-check the fine print.

Furthermore, certain colleges offer course credit for work and life experience, which could help you save money by cutting down on the total number of classes you need to take (and pay for). Check with your university to see if it offers this perk.

Federal Student Loans

Even if you successfully apply for scholarships and get employee education benefits, you may still be left with more college expenses than you can pay for out of pocket.

That’s where student loans come in — and generally, the first place to look for student loans is the government.

Despite the common misconception that federal student loans are only available to traditional-age college students, there’s no upper age limit.

And unlike many private student loans, applying for federal student aid doesn’t require a credit check.

Depending on your income, you may be eligible for Direct Subsidized Loans, which give you a break on interest while you’re enrolled at least half-time and for six months after you graduate. (The Department of Education pays the interest during those times.)

You’ll pay interest on the loan when monthly payments begin, but that subsidy can mean substantial savings over time.

The U.S. government also offers Direct Unsubsidized Loans, which start accruing interest immediately but carry fixed interest rates that are often lower than those from a private student loan lender.

Whichever type of federal loan you take out, you generally don’t have to start making payments until six months after you graduate. With some private student loans, payments begin right away.

To apply for federal student loans, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA).

Many colleges will also require you to fill out the FAFSA in order to qualify for institution-specific forms of financial aid. Applying can also help qualify you for work-study programs.


💡 Quick Tip: It’s a good idea to understand the pros and cons of private student loans and federal student loans before committing to them.

Private Student Loans

Along with government-sponsored student loans, a wide variety of private student loans are available, many of which may be easier to qualify for as an adult with a more robust credit history.

While traditional-age collegians often need to enlist the help of a cosigner to apply, adult learners may not need to, and might also score better terms if they have good or excellent credit.

That said, it’s important to understand that private student loans sometimes carry higher interest rates than other forms of financial aid, and the rates can be variable.

Deferral and income-driven repayment plans are available to eligible borrowers of federal student loans, but such options may be limited for private student loan holders, depending on the lender. It’s always important to read all the fine print up front.

Fee-Free Loans

When researching loan options for going to college as an adult learner, it’s important to look not just at the interest rate but also any fees the lender is charging, since this can significantly add to your cost. Some student loans charge application or origination fees, as well as late fees or returned check fees.

All federal student loans, for example, charge an origination fee, which is calculated as a percentage of your total loan amount and then subtracted from your loan before it’s disbursed to you. As a result, the amount you receive will be less than the amount you borrowed.

You can find private lenders that offer fee-free student loans, so it’s a good idea to look at all the costs involved when comparing all of your financing options.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs. SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you’re like most people, credit card interest and taxes are two things you don’t want to pay. Luckily, paying one may help you pay less for the other. Credit card interest and fees are tax-deductible in some cases. That means every dollar you pay in credit card interest might reduce a dollar of your taxable income.

If that sounds too good to be true, there is a catch — credit card interest and fees are typically only considered tax-deductible if they are legitimate business expenses. If you don’t run a business, or the interest and fees were not incurred in the operation of a business, you generally won’t be able to deduct them on your tax return.

How Credit Card Interest Works

When you make a purchase with a credit card, you don’t have to pay for it right away. Instead, you are borrowing the money for the duration of your statement (usually one month). At the end of your statement balance, you must make at least a minimum payment. But if you don’t pay the full statement amount, you will be charged credit card interest on any outstanding balance. Charging this interest is one way that issuers fund credit card perks and benefits like credit card rewards.

💡 Quick Tip: When choosing a credit card, look for one that aligns with your existing spending habits. For example, some cards offer rewards on airline purchases for frequent travelers, while others, like the SoFi Credit Card, offer cash-back rewards on all purchases.

Is Credit Card Interest Tax Deductible?

Whether or not credit card purchase interest charges are tax-deductible depends mostly on whether it is personal or business credit card interest.

Business Credit Card Interest

Business credit card interest may be tax-deductible in certain situations. Generally speaking, in order to deduct any expenses, they must be incurred in the regular operation of the business. The IRS does not have requirements about what type of credit card is used, as long as the interest is incurred on business expenses.

You may be able to deduct credit card interest on a personal credit card used for business purchases. However, most credit card agreements prohibit the use of personal credit cards for business purposes on a regular basis.

Not surprisingly, you cannot typically deduct credit card interest on personal expenses charged to a business credit card. And if you pay for personal and business expenses with the same credit card, you may not be able to deduct the full amount of interest. Consult with your accountant or tax advisor if you have questions about what can and cannot be deducted.

Personal Credit Card Interest

Personal credit card interest is not tax-deductible under any circumstances. You cannot deduct interest that you pay for personal expenses on a credit card. That’s one more reason to always pay your credit card statement in full, each and every month. That way you aren’t charged any credit card interest.

Recommended: How to Do Taxes as a Freelancer

Are Credit Card Fees Tax Deductible?

Just like credit card interest, the deductibility of credit card fees largely depends on whether they are for business expenses.

Business Credit Card Fees

Credit card fees that are incurred as business expenses are generally considered deductible. This includes credit card annual fees, overdraft fees, foreign transaction fees, late fees, and balance transfer fees. As long as the credit card is used for business purposes, any fees charged by the credit card issuer will be tax-deductible.

💡 Quick Tip: When using your credit card, make sure you’re spending within your means. Ideally, you won’t charge more to your card in any given month than you can afford to pay off that month.

Personal Credit Card Fees

In contrast, personal credit card fees are not generally considered deductible. Any fees that you are charged by your credit card issuer that are not business expenses cannot be deducted from your taxable income.

Recommended: Can You Use a Personal Checking Account for Business?

Avoiding Interest and Fees vs Tax Deductions

While it’s important to understand that you may be able to deduct credit card interest and fees if they are business expenses, avoiding credit card interest may be the more prudent thing to do. If you are in a 30% tax bracket, that means deducting one dollar of interest will save you 30 cents. But if you pay your balance in full, you won’t be charged any interest and save the full dollar.

The Takeaway

Some credit card fees and interest is deductible on your annual tax return. Generally speaking, you cannot deduct personal credit card interest or fees. You may be able to deduct them if they are legitimate business expenses. Keeping your business and personal expenses separate can help you determine which fees and interest you may be able to deduct.

Looking for a new credit card? Consider a rewards card that can make your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt.

FAQ

Can you deduct credit card interest as business expense?

As credit card interest rates rise, the amount of interest that you’re charged each month on any unpaid balances also rises. So you may be wondering if you can deduct credit card interest from your taxable income. The good news is that as long as the interest is a legitimate business expense, you can generally deduct the interest.

Are credit card fees tax deductible?

It’s important to understand how different credit card-related items affect your taxes. Credit card rewards are generally not considered taxable, while some credit card fees may be tax-deductible. You may be able to deduct most credit card fees as long as they are considered legitimate business expenses. Personal credit card fees are not generally considered deductible.

Can you write off personal credit card annual fees?

No, in nearly all cases, you cannot take a tax deduction for personal credit card fees. Only credit card fees that are legitimate business expenses are tax-deductible. However, it’s important to understand that the IRS does not make any distinction between what might be marketed as a “personal” card or a “business” credit card.

Photo credit: iStock/Cameron Prins

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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