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There's a hesitation I see regularly about applying for travel rewards credit cards, stemming from the minimum spending requirement to earn a welcome bonus. Some people feel the spending requirements are too high for their income levels. Others think that much spending sounds rash — as if it's a surefire way to get into credit card debt.
Many of the best card offers require spending at least $4,000 within three months of opening the account. Premium cards, like the American Express Platinum Card®, might require $12,000 or more in spending to earn a welcome bonus. That can feel like a lot of money — especially if you aren't used to spending that much on a credit card.
However, there are a few tricks to tackling this requirement without increasing your overall spending. The goal is to shift as much of your regular spending as possible onto the card during the welcome period. After all, it’s money you’d be spending anyway — not an excuse to spend more.
Here's how you can meet minimum spending requirements to earn a new credit card welcome bonus.
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Ways To Meet Credit Card Minimum Spend (Without Paying Fees)
In simple terms, use your new credit card to pay your existing bills. Swipe it at the supermarket, pharmacy, and gas pump. Use it to pay your phone bill. For these few months, don't worry about which card in your wallet offers the most points or miles per dollar on your purchase.
Even if your new card only offers 1 point per $1 on general purchases, use it as much as possible until you earn the welcome bonus. After that, you can be strategic about which card you use on each purchase.
Here are our best tips for putting your existing expenses onto your new card:
- Put the card in the front of your wallet. This way, it's the first card you'll see when it's time to pay.
- Add it to your digital wallet. Set your new card as your default method in your digital wallet, like Apple Pay or Google Pay, so it's the first card that pops up when you're ready to pay.
- Set this as the default payment method for recurring bills. This applies to Amazon purchases, utilities, streaming subscriptions, dog-walking services, meal kit plans, car insurance, medical insurance, and any other recurring bills.
- Use your new card for any one-time payments during the bonus period. If you need to reload your toll pass, pay an annual gym membership, or prepay other large expenses, now is the time to make those payments so they count toward your minimum spending.
- Use this card for any work expenses eligible for reimbursement. Depending on your workplace, you may be reimbursed for various expenses you charge to your credit card. If that's the case, this spending counts toward earning your welcome bonus and comes at no cost.
- Buy gift cards in advance for upcoming expenses. Your supermarket, pharmacy, and other stores sell gift cards. You can purchase these now to use later, assuming you can afford to pay several months in advance.
- Donate to charities or religious organizations. Many charities accept donations online by credit card. See if your church, mosque, or synagogue takes contributions in this way. If you regularly donate to these places, contributions can help you meet minimum spending requirements by simply switching your payment method.
- Volunteer to use your card for group expenses. If you're going out to dinner with friends and family, booking a group trip, or planning a large group outing, make things easy by using one card. Only use this method with loved ones you are confident will pay you back; otherwise, you're on the hook for the entire amount.
Always check your card’s terms and conditions before using these strategies. Some issuers exclude certain transactions — like tax payments or gift card purchases — from earning rewards or counting toward a welcome bonus.
$95
- 5X miles per dollar on purchases through Capital One Entertainment
- 5X miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel
- 2X miles per dollar on all other purchases
$325Rates & Fees
(Terms apply)
- 4X Membership Rewards® Points at restaurants worldwide, plus takeout and delivery in the U.S. (on up to $50,000 per year in purchases, then 1X)
- 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X)
- 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com
- 2X Membership Rewards® points on prepaid hotels and other eligible travel booked on amextravel.com
- 1X on other eligible purchases
$150Rates & Fees
- 2x on United® purchases*
- 2x on local transit and commuting — including train tickets, taxicabs, mass transit, tolls and ride share services
- 2x at gas stations, restaurants and office supply stores
- 1x on all other purchases
Other Large Expenses That Could Help Meet Credit Card Minimum Spending Requirements
Home improvements
Do you have a contractor working on your home? See if you can pay with your credit card. If not, can you pay for the supplies with your credit card? Leaving your credit card on file at Lowe's or Home Depot and allowing them to use it to buy supplies can go a long way toward earning your new card's welcome bonus.
You can also consider adding a child or partner as an authorized user on your account so multiple people are contributing toward the spending requirement. Only do this with people you trust to pay you back — otherwise, you’re on the hook for the full amount.
Car payments
You might also be surprised to learn that many car dealerships accept credit cards for down payments. Depending on the dealership, you can typically pay anywhere from $3,000 to $5,000 on any credit card — including American Express. That completes a minimum spend requirement in one swipe! Before swiping your card, check with the dealership's finance department to ensure it won't be coded as a cash advance (which would trigger high fees).
Related: Best Credit Cards for Large Purchases ($5,000 or More)
Additional Ways To Meet Spend Requirements (With a Fee)
If the above methods won't be enough to meet your new card's minimum spending requirements, there are additional methods you can use — though these come with fees. Fees vary by payment processor but are typically 2%–3.5%.
Do the math to determine whether these fees are worth it to unlock the bonus on your new credit card. It's also good to know about these options if you need to meet multiple minimum spending requirements simultaneously or if you’re pressed for time. Some examples include:
- Pay your mortgage, rent, and car payments. You can use a service like Plastiq to pay these sizeable bills and more via credit card. You'll provide the recipient's information and your account number, and Plastiq can then send a check by mail or pay by money transfer. You'll pay a 2.99% fee when you use a credit card here.
- Pay your taxes with a credit card. You can pay the IRS by credit card through an approved payment processor for a fee of as low as 1.75%. Depending on the location, it’s also possible to pay state and local taxes with a credit card — either directly or through a third-party provider for a fee. You can use this to make estimated payments for the future or to pay outstanding taxes from prior filings.
- Pay college tuition or student loans. See if your school accepts credit card payments and whether there are fees. For existing student loans, you may need to pay through a service like Plastiq.
Related: The Best Rewards Credit Card Offers This Month
Bottom Line
Meeting a spending requirement to earn a credit card's sign-up bonus can feel daunting. However, if you break the spending requirements into monthly pieces during the earning period and then shift all of your recurring expenses onto the credit card during that time, it might be less difficult than you originally imagined. $4,000 sounds like a lot — but broken down, that’s about $1,333 per month.
If you have additional expenses that can't be paid by credit card without a fee — and the fee-free options won't be enough to earn the welcome bonus — consider which is worth more: the card's bonus or the fee you'll pay to complete the spending. If the bonus is worth more than the fee(s) you pay along the way, it can make sense.
The most important rule: Don’t spend extra just to earn a welcome bonus. It won't make sense to go into debt for some extra airline miles. The goal here is simple: Earn a credit card's sign-up bonus by using your existing expenses to meet the card's minimum spending requirements.
For rates and fees of the cards mentioned in this post, please visit the following links: American Express® Gold Card (Rates & Fees), and United℠ Business Card (Rates & Fees)
