HOW TO MEET THE MINIMUM SPEND ON YOUR NEXT CARD
Credit card welcome offers one of the fastest ways to earn tens of thousands of points and miles. For most people, a single welcome bonus is worth far more than years of everyday purchases. The only catch is hitting the minimum spending requirement within the first few months of account opening.
You don't need to go on a shopping spree to hit that requirement. With a little planning, you can often meet the minimum spend using expenses you were already going to have. The key is to approach it strategically and responsibly.
With everyday spending, you might earn one or two points per dollar. A welcome bonus, on the other hand, can give you 10-20x points per dollar after you meet the required spending.
Here are some important things to consider:
Before applying, look at the minimum spending requirement and ask yourself whether you can comfortably meet it through expenses you were already planning to make.
Make sure you can pay the balance in full each month. If you're paying interest on your credit card just to earn travel rewards, you're defeating the purpose. After all, the goal is to use points and miles to save money on travel, not to pay more in interest.
Put Your Normal Expenses on the Card
Once you've opened the card, start by putting as many of your regular expenses as possible on it. This can include:
Gas
Groceries
Dining
Streaming services
Phone bill
Internet
Insurance
Utility bills
Subscriptions
Household expenses
The important thing is that you're not creating new expenses. You're simply using your travel credit card instead of your debit card to earn rewards.
Pick Up the Tab
If you're going out to dinner with friends or family, you could offer to put the entire bill on your card and have everyone pay you back. This can also work when booking travel for family and friends or paying for other shared expenses. Just make sure you only do this with people you trust to pay you back right away.
Pay Your Taxes
Taxes can be another way to meet a credit card’s minimum spending requirement, especially for cards with a high spending threshold.
Depending on the payment method, paying taxes by credit card can involve a processing fee. Because of that, I wouldn't automatically recommend paying your taxes with a credit card just to earn points. However, if you're working toward a new welcome offer, it can be worth doing the math to see if the value of the rewards will outweigh the processing fee.
Planned Expenses
Timing can make meeting the minimum spend much easier. One of the best times to apply for a new card is when you know you have a large expense coming up and you can afford it without carrying a balance.
For example, let’s say a card requires $4,000 in spending within three months. If you already know you're going to spend $3,000 on a planned expense during that period, you're much closer to the finish line without changing your normal budget.
Buying a Car
If you're purchasing a car, ask the dealer whether they accept credit cards and whether there are any restrictions or fees. Some dealerships may limit how much of a vehicle purchase you can put on a credit card, so don't assume the entire purchase can go on the card.
Paying for a Wedding
Weddings can involve a huge number of expenses, from the venue and catering to photography, flowers, entertainment, and more. If your vendors accept credit cards without significant additional fees, these expenses can make it easier to meet a minimum spend. Just be careful not to let the excitement of earning points encourage you to spend beyond your wedding budget.
Home Renovations
A renovation can also create significant legitimate spending. Materials, appliances, contractors and other renovation-related expenses may potentially be paid by credit card, depending on the merchant. Again, check whether the vendor charges a credit card processing fee before deciding whether it's worth it.
Other Planned Expenses
There are plenty of other situations where a large expense may naturally fit into your minimum spending period:
Moving expenses
Furniture
Appliances
Airline tickets
Hotels
Vacation expenses
Professional services
Insurance premiums
Tuition or educational expenses
Annual memberships
Medical expenses
Business expenses
Make sure to check that the merchant accepts credit cards
Bottom Line
Meeting a minimum spending requirement doesn't have to mean spending more money. The key is to plan ahead and time your credit card applications around expenses you already have coming up.
Before applying, make sure the minimum spend fits comfortably within your budget and that you can pay the balance in full each month. If you can do that, a large welcome offer can be a great way to turn your everyday spending and planned expenses into valuable travel rewards.