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There's a hesitation I see regularly about applying for travel rewards credit cards is about 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.
Typical welcome bonuses can require spending $4,000 on your new card within three months of opening the account. That can feel like a lot of spending — especially if you aren't used to spending that much on a credit card.
However, there are a few tricks to tackling this spending requirement without increasing your overall spending. The goal is to shift all (or as much as you can) of your typical spending onto the card during the welcome period. After all, it's money you'd be spending anyway. The goal is NOT to start spending more money to meet this goal.
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 the simplest terms, you should use your new credit card to pay all of your existing bills. Swipe it at the supermarket, pharmacy, and gas pump. Use it to pay your phone bill. 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.
- Set this as the default payment method for recurring bills. This applies to Amazon, utilities, streaming subscriptions, dog walking service, 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 like HSA/FSA, 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 and its expense system, you may get reimbursed for various expenses that you put on your credit card. If that's the case, this spending counts toward earning your welcome bonus and comes at no cost to you.
- Buy gift cards in advance for your upcoming expenses. Your supermarket, pharmacy, and other stores sell gift cards. You can purchase these now to use in the future, assuming you can afford to spend the money 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 simply by shifting your payment method.
Related: How Does a Credit Card Sign-Up Bonus Work?
Other Large Expenses That Could Help Meet Credit Card Minimum Spending Requirements
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 or adding the contractor as an authorized user on your account (then they buy the supplies with that card) can go a long way toward earning your new card's welcome bonus.
You also might be surprised to learn that numerous car 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 American Express. That completes a minimum spend requirement in one swipe! Before swiping your card, check with the dealership's finance department to ensure this won't be coded as a cash advance (which has a lot of 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. These fees vary, depending on the payment processor, but are typically around 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 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, then Plastiq can send a check in the mail or pay by money transfer. You'll pay a 2.9% fee using a credit card here.
- Pay your taxes with a credit card. You can 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 — 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.
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 element is to ensure you aren't spending additional money 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.
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