Credit card sign-up bonuses are an excellent way to earn valuable rewards such as cashback, travel points, or miles. However, many of these bonuses come with a catch – you must meet a minimum spend requirement within a specific timeframe. While some may worry about overspending or accruing debt to reach this threshold, fear not! This blog post will explore several creative and responsible ways to meet the minimum spend requirement for a new credit card sign-up bonus without going into debt. Let’s dive in!
Typically a credit card sign-up bonus is earned by spending a set dollar amount within the first few months of opening the credit card. Let’s use the Chase Sapphire Preferred as an example. The Chase website states that you can earn a welcome bonus by spending $4,000 in the first three months of getting the card, and earning a bonus of 60,000 Ultimate Rewards points.
That is a ton of Ultimate Rewards that can be redeemed for travel or cash back. But what if you usually don’t spend $4,000 in three months? When I first started earning miles on credit cards I was younger and budget-conscious so I was typically only spending $600-$800 per month on my cards. I knew I would have to get creative to meet the spending requirement, but I didn’t want to spend on anything I didn’t need.
Today I want to share some of the methods I have used for years that have earned me over one million points and miles without breaking the bank. The great thing is that these methods can also be used when meeting a spending requirement for a credit card retention offer.
Important to Know
Before moving forward I want to stress how important it is to NOT do the following to meet a minimum spend requirement:
1. Buy something you don’t need just for the points or miles:
This defeats the purpose as you’re just wasting money on an item or service you will never use.
2. Buy item(s) you won’t be able to pay off in full:
Even if you have a good credit score the interest rates on the best rewards cards can range from 20-30%. You will pay more interest than the dollar value of your points and miles pretty quickly! It’s best to only put charges on the card that you can afford to pay out of pocket.
3. Violate the terms and conditions of the credit card company or bank:
Always make sure to read over the terms and conditions on what kind of activity looks like gaming. Credit card companies will shut you down and potentially ban you from qualifying for future bonuses. Gaming the system could be something like purchasing several Visa gift cards at a grocery store or department store.
Ideas to Meet Minimum Spend Requirements
1. Consolidate Everyday Spending:
The simplest method to meet the minimum spend requirement is to consolidate your everyday spending on the new credit card. By using the card for regular purchases like groceries, gas, and utility bills, you can quickly reach the target spend. Here’s a useful tip: consider setting up automatic payments for recurring bills with the new credit card to ensure consistent usage.
2. Get help from family and friends:
Back in 2016 when the Chase Sapphire Reserve first came out I knew the 100,000 Ultimate Rewards sign-up bonus was too good to pass up, but I would never be able to meet the spend requirement on my own.
Luckily at the time, a family member was doing a home construction project. I agreed to buy his materials on my card and then he reimbursed me. This accounted for over 25% of the minimum spend requirement that I needed! It’s important to only do this with close family and friends that you trust will reimburse you so you’re not stuck with the bill.
Think of upcoming expenses those close to you might have and just ask if they would be willing to help out.
3. Prepay the Cell Phone Bill:
This is one bill that everyone has and for some, it can be a large monthly expense if paying for multiple lines. The average family spends up to $220 per month on their cell phone bill.
Knowing this is a recurring expense and a necessity for modern life, it makes sense to prepay your cell phone bill several months out to help reach your spending goal. This should result in a statement credit on your cell phone account that will be offset by future bills. Remember to only prepay what you can afford to pay in full for the month.
Bonus tip: If you are single and only paying your own bill see if family members would want to start a family plan. It’s usually cheaper per line under a group plan so everyone will benefit. Volunteer to make the monthly payment and have each person reimburse you. This is a great long-term strategy too if you plan on applying for additional credit cards in the future.
4. Pay Insurance Bills in Full:
Most people have insurance bills whether it is for auto, renters, or homeowners. If you have been paying your policy on a monthly basis check and see with your provider if you can pay your policy in full for an entire year of six-month-term. If you can afford it this is a great way to reduce the overall cost of your policy as many companies will offer pay-in-full discounts over monthly payment plans.
5. Plan Ahead for Special Occasions:
If you have birthdays, graduations, anniversaries, or other celebrations coming up, use your new credit card to cover the expenses. Whether it’s a thoughtful gift for a loved one or organizing a small party, these special occasions can contribute significantly to meeting the minimum spending requirement.
6. Pay Rent or Mortgage with Plastiq:
Platforms like Plastiq allow you to pay rent, mortgage, or other bills that typically don’t accept credit card payments. While Plastiq may charge a small fee for this service, the rewards earned from meeting the minimum spend can outweigh the cost, making it a worthwhile option. Keep in mind that American Express and personal Capital One credit cards do not work with Plastiq.
7. Use the Card for Work Expenses:
If you have work-related expenses reimbursed later, consider using your new credit card to pay for them initially. Ensure your company allows this practice and keep meticulous records of your expenses for reimbursement.
8. Fund Charitable Donations:
Make a positive impact while fulfilling your credit card’s minimum spend requirement by donating to your favorite charities. Many charitable organizations accept credit card payments, and your contribution will go towards a good cause.
9. Book Future Travel:
Are you planning a trip in the future? Use your new credit card to book flights, hotels, or vacation packages in advance. Not only will you be closer to earning your sign-up bonus, but you might also enjoy travel-specific perks that come with the credit card.
10. Time a Large Expense:
If you know you have a large expense coming up that can be paid with a credit card, it could be the perfect time to meet a minimum spend requirement. Do you need to upgrade an appliance? Take your family back to school shopping? Put a down payment on a new or used car? These are all large purchases that we have to occasionally make, and if the expenses are unavoidable it might make sense to time a minimum spend requirement and sign up for a new credit card.
Final Thoughts:
Meeting the minimum spend requirement for a new credit card sign-up bonus is an achievable goal without resorting to excessive spending or accumulating debt. By leveraging your regular expenses, planned purchases, and responsible financial practices, you can earn valuable rewards while staying financially responsible. Always remember to pay off your credit card balance in full and on time to avoid interest charges, ensuring that you make the most of your rewards without any financial drawbacks. Happy reward hunting!