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A typical objection to applying for travel rewards credit cards is intimidation of the requirement of meeting a minimum spend obligation. Sure, impulsively spending $4,000 or more in 90 days sounds like a financial burden or even irresponsible. However, most people don't understand what qualifies as an eligible credit card expense. Hitting minimum spend requirements can be achieved, without exceeding the family budget, just by paying everyday bills.
Depending on the bank and associated bonus, cardmembers typically have 90 days after account opening to complete minimum spend requirements. To boot, American Express lets members access a temporary card number instantaneously after online application approval. This saves precious time by allowing immediate spending rather than waiting a week for a new card to arrive in the mail. However, there’s no need to feel rushed when the following routine purchases are easily paid with a credit card to help meet a minimum spend.
Ways to Meet Credit Card Minimum Spend (Fee Free)
Everyday Expenses – groceries, wholesale clubs, fuel, dining, take-out/delivery
Household Bills – cell phone, cable TV, internet, utilities (gas, electricity, water), car insurance, renter’s insurance, umbrella insurance, car repairs, gym membership, dry-cleaning, toll transponders, subway/metro tickets
Subscriptions – Netflix, Hulu, HBO Now, XM Radio, Spotify/Pandora/Apple Music/Google Play Music, App Store purchases, Audible, Amazon Prime, HelloFresh, Blue Apron, BarkBox
Charitable Contributions – tithes to religious organizations and donations to charities (also tax deductible)
Medical Expenses – reimbursements for HSA/FSA eligible expenses, prescriptions, veterinarian
Home Improvement – contractors, landscaper, Lowe’s, Home Depot, garden center/nursery, lumber yard
Family Expenses – maid/cleaning services, babysitter, tutoring, pet sitter, daycare, birthday or holiday gifts
Reimbursements – Ask your employer if it’s possible to charge work travel expenses to a personal credit card and file an expense report. During a night on the town, make it easier on your server and offer to pay for dinner with your credit card and let friends send you money via a service such as Venmo.
Car Purchases – Most dealerships accept credit cards for down payments when purchasing a car. Depending on the dealership you can typically pay anywhere from $3,000 to $5,000 on any credit card—including Amex. That completes a minimum spend requirement in one swipe!
Gift Cards as Budgeting Tools – Another way to meet minimum spend is buying gift cards for your favorite retailers. Most big-box stores sell huge racks of various gift cards like Starbucks, Amazon, iTunes, etc. Just those three alone are examples of gift cards that can be pre-loaded into your accounts and don’t require the physical, plastic card for future purchases.
Additional Ways to Meet Spend Requirements (With a Fee)
Of course, if securing the bonus as quickly as possible is important, then consider paying a convenience fee to pay bills that are traditionally paid with cash/check. These fees range depending on the payment processor but are typically around 2.5% – 3.5%. If you have substantial cash expenses, then determine if paying the fee is worth the bonus points. Most often it isn’t the best option since it’s possible to quickly hit the minimum spend by paying everyday expenses previously mentioned. However, it’s always good to have options—especially if you need to meet multiple minimum spends simultaneously, or you’re pressed for time. Some examples include:
Mortgage, rent, car payments – Use Plastiq to pay these sizeable bills and more via credit card. Simply provide recipient information, address or direct deposit details, and payment amount. Then Plastiq remits payment on your behalf via check, wire transfer, or ACH transfer for a 2.5% fee. Best of all those charges code as purchases and not cash advance.
Taxes – Pay the IRS using a credit card through one of the approved payment processors for a fee of less than 2%. Depending on the location, it’s also possible to pay state and local taxes with a credit card directly or through a third-party provider for a fee.
College Tuition or student loans – Check with your institution regarding its credit card payment policies. Many will accept tuition payments via credit card along with a processing fee. A few of you may be lucky enough to pay without any fee — if you can consider paying tuition lucky.
Pay friends and family – Use payment platforms like Venmo and PayPal to pay your loved ones like normal. Except instead of using a linked debit card or checking account, pay with a credit card. Venmo charges 3% and PayPal is $2.9% + $0.30 when funding payments with a credit card. Don't abuse these services; they're quick to shut down suspicious accounts.
Minimum spend requirements can be a big turn off, especially when you look at the availability of outsized bonuses. Take a step back and assess your situation before you deem yourself incapable of meeting them — it might not be as hard as you think.
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The car purchase can help add to the spend total. Recently we used the credit card for the down payment. They asked for $500 but I might have been able to pay more on the card. Then when we decided to get the extended warranty there was another $1800 on the card.
I got a random error when posting so sorry if this is a double post. I have two cruises to pay off an I hope to continue that trend. That way if a new card should pop up, I have debts that are ready to be paid already.
I had never thought about a lot of these. Good information to have.
This makes a lot of sense – who knew that everyday expenses could hit that minimum spend so easily? Thanks for the update!
The Cardpool option sounds fantastic!
Discounted gift cards available for many retailers and restaurants from Cardpool. Great way to put some advanced spending to meet minimum spend and save a few bucks as well. WIN-WIN
Buying costco and grocery store GC sounds good idea?
Plastiq and TransferWise are our favorites!
I usually ramp up my health insurance payments in advance which gets me across the line.
I love the gift cards tip!
With some stratigic thinking it is never a problem for me to reach the minimum spend requirement as I always try to open a new card beforehand (like before visiting my dentist when I know it is going to cost a lot, etc.)
Gift Cards as Budgeting Tools! Brilliant!
I was told Plastiq had certain restrictions when it comes to paying rent, mortgage, etc with a credit card.
Is this true?
if you know of any car dealers that let you pay for the entire vehicle on a CC please point us in the right direction
never knew about car down payments. thanks.
Do the Amazon gift card purchases meet the minimum spend requirements?
Works fine in all of my cases. It might depend on how/where you get them. Specifically, make sure it isn’t an issue with American Express.
You forgot buyers clubs
I’m not sure we “forgot” them. I’d say too small of a potential audience.
I actually mean that my card credit balance is not even large enough to pay for the final purchase price of a starter car after coming to a understanding with the car dealer.
A gift card from Amazon is often a good solution.
I’ve use the down payment at car dealers in the past and noticed that compared to few years back, they’ve reduced the amount that they’ll allow you to put down using the card.
pretty much everything can be charged now – I’m wondering what common items cannot be?
As you mention, nearly every entity will accept credit card payments. The real issue arises when there are additional fees involved in using the credit card.
I have heard of reliability issues with Plastiq. And pre-paying taxes usually come with extra fees. I like paying annual or semi-annual insurance premiums and AAA.
So many times I heard that gift cards didn’t work for this and that. I never even thought about it for the bonus!
I never thought that a car dealer would accept a credit card for a down payment until we asked for my husbands car we just got.
$5k down payment!!! They took it and then we just paid it off, since we had the money. I am just hoping I get the same luck when I go for my card and then figure out which card I should be going for!
I wonder if kudos to certain bloggers count as spend?
I thought gift cards aren’t counted?
In certain circumstances, with certain card issuers, if you’re trying to play games, you may run into such an issue. In general, no, it isn’t a problem.
Like another poster said, every time I have a new large expense coming up, I try to open a new card. The expense may take care of the entire minimum spend. I have put down payments on cars with my credit card, but the dealer would limit me to 2500. I’ll definitely keep Enterprise in mind next time I’m buying a used car. That’s a great tip. (I always have saved the cash to buy the entire car so I pay it off right away).
im always surprised at how easy it is for me to meet the minimums. i prob need to budget better!
Do you know if Western Union money transfers also go through as a purchase and not a cash advance?
Cash advance.
Thank you,. On those rare occasions I used Western Union, I never used a credit card, to be safe.
I like the gift card idea. its basically buying cash for later use 🙂
Me too, it’s a method I often sly it requires that one “float” the funds until the GCs can be consumed, but it can definitely be a useful tool to complete spend by a given deadline.
Wow, my card credit balance is not even large enough to buy a starter card.
A big one for me missing here is daycare / schools: huge expense, many accept cards.
OTOH, there should be a caveat around Plastiq, since different cards & issuers have category limitations.
Day care is listed under Family Expenses. College tuition/student loans is included as a completely separate category.
I would remind anyone thinking of playing the credit card game to make sure they can meet their monthly spend each month so that they don’t incur any late fees or interest charges that would diminish the value of the miles/points they earn.
Good list for reminding us of the options out there to meet spend. We always seem to not have a big problem meeting spend as we try to time our new apps to when the big ticket items come due, namely insurances.
I always think I’ll have trouble but usually manage easily.
Assess your situation instead of asses. All good for me but it is an awkward typo.
Editor of the year here folks! 😉
LOL! Oh, Howie. This made my day.
Hahah!! Winner winner!
We’ve been very fortunate with meeting spend easily. The last three cars we’ve bought have been totally paid for with credit cards and no fees attached. No questions asked.
Here’s a little FYI. Enterprise Car Resales is great about using credit cards with no fees in our experience!
Interesting. Did they let you pay for the entire car with a credit card or just a flat rate?
The highest a car dealer accepted for me was $2500