The Best Credit Cards For Large Purchases

The Best Credit Cards For Large Purchases

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Typically the way to maximize credit card rewards is to take advantage of the best credit card welcome offers and also to use the cards with the best bonus categories.

Many people may find themselves in a situation where they need to make a very large one-time purchase. Maybe you’re paying taxes by credit card. Maybe you’re doing a home renovation. Maybe your business has a huge purchase it needs to make.

Assuming your purchase isn’t in a category that otherwise qualifies for a bonus category (like dining, groceries, gas stations, airfare, hotels, etc.), what’s the best way to maximize rewards? Of course let me note upfront that this is contingent on having a card with a high enough credit limit for this kind of a purchase.

Admittedly there’s no one size fits all answer. It depends on what rewards and perks you value most, and it depends on just how much you’re spending (after all, “big spending” means different things to different people).

In this post I wanted to take a look at how I’d go about deciding which card to use for a large purchase, so that you can hopefully at least come up with an approach that works for you.

Reach a big credit card minimum spending requirement

Credit cards often have big welcome offers, and the spending requirements to unlock those bonuses can vary. Sometimes you can unlock the bonus after a single purchase, and sometimes you can unlock the full bonus after tens of thousands of dollars of spending.

So if I do have a big purchase to make, my first consideration is if there’s any card that I’ve been considering applying for that has a big spending requirement. These kinds of situations can be the ideal time to pick up a card like this. This would probably get you the highest return per dollar spent of any of the possible options.

Apply for a card with a big spending requirement for the bonus

Maximize your rewards on everyday spending

Another logical option for your spending would be to simply use one of the best cards for everyday spending.

Nowadays you don’t have to work hard to get a good return on spending, as you can earn 2x transferable points per dollar spent with cards like the Capital One Venture X Rewards Credit Card (review) (Rates & Fees), the Capital One Spark Cash Plus (review) (Rates & Fees), the Citi Double Cash® Card (review), etc. Based on my valuation of points, those rewards can potentially equate to a 3.4% return on spending.

Use a card with a good return on everyday spending

Earn airline status & perks

If you’re looking to earn something beyond just points or a welcome offer with a big spending amount, there are quite a few airline credit cards that offer significant incentives for spending. This can either be for spending any amount, or there are certain threshold bonuses. Let’s break this up into two categories, and I’ll list the opportunities I consider to be most lucrative.

For one, there are airline credit cards that can help you earn airline elite status, with the most lucrative opportunities being the following:

Earn AAdvantage elite status with credit card spending

There are also airline credit cards that can help you earn companion perks, with the most lucrative opportunities being the following:

Earn a British Airways companion certificate with credit card spending

Earn hotel status & perks

Not only are there lucrative airline credit cards if you’re spending big amounts, but arguably there are even more lucrative opportunities with hotel credit cards. This can either be for spending any amount, or there are certain threshold bonuses. Let’s break this up into two categories, and I’ll only list the opportunities that I consider to be most lucrative.

For one, there are hotel credit cards that can help you earn hotel elite status, with the most lucrative opportunities being the following:

The information and associated card details on this page for the Hilton Honors American Express Aspire Card has been collected independently by OMAAT and has not been reviewed or provided by the card issuer.

Earn World of Hyatt Globalist status with credit card spending

There are also hotel credit cards that can help you earn free night awards, with the most lucrative opportunities being the following:

Earn a Hilton Honors free night award with credit card spending

My strategy when making big purchases

While the above are what I consider to be among the most lucrative options for big spending amounts, what’s my personal strategy? If I’m not trying to reach a minimum spending requirement on a card, usually my spending for big purchases goes onto one of three cards:

I’m staying on the American Airlines hamster wheel, at least for now

Bottom line

Many people view a big purchase as an opportunity to maximize their credit card rewards. There are several great strategies that you can take to maximize your rewards, as I don’t think there’s one best approach to take.

At a minimum, just use a card that’s best for everyday spending. However, ideally take advantage of a card with a welcome bonus that has a big spending requirement. Alternatively, airline and hotel credit cards sometimes have very lucrative spending bonuses, which can prove worthwhile.

What’s your credit card spending strategy for big purchases?

Conversations (16)
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  1. iamhere Guest

    A pretty insignificant article. Seems like relatively obvious if you follow the blog or have a strategy.

  2. Mark Guest

    This article makes no sense. The card for big spending is always Amex Centurion card which has no spending limit.

    1. Gentleman Jack Darby Guest

      @Mark:

      You're post make no sense.

      The point of the article is which card RETURNS the most on a large purchase in the "OTHER" bonus category, NOT which card has the largest credit limit.

      And it's clear that you don't understand American Express CHARGE cards: NONE of the Amex CHARGE cards, e.g., the Centurion card, the Gold card or the Green card have pre-set spending limits but they DO have spending limits based on one's...

      @Mark:

      You're post make no sense.

      The point of the article is which card RETURNS the most on a large purchase in the "OTHER" bonus category, NOT which card has the largest credit limit.

      And it's clear that you don't understand American Express CHARGE cards: NONE of the Amex CHARGE cards, e.g., the Centurion card, the Gold card or the Green card have pre-set spending limits but they DO have spending limits based on one's credit history, financial resources disclosed to Amex, charge history, and payment history with Amex.

      The Amex Centurion card is one of the worst cards for making large purchases in the "other" category because the return is only one point or one percent. Plenty of no-annual-fee cards beat the Centurion for "other" category purchases.

  3. mjonis Guest

    Most of my "large" purchases that aren't in categories will be for home improvement/repair. At that point I have to figure if it's better to get the 10% back (ie: home depot special credit offers but only if it's charged on their card) or use a 2% Citi Double Cash (which is really TY points, coupled with TY Premiere) or possibly Chase Ink business Unlimited which I think is 1.5% in Chase UR or flat...

    Most of my "large" purchases that aren't in categories will be for home improvement/repair. At that point I have to figure if it's better to get the 10% back (ie: home depot special credit offers but only if it's charged on their card) or use a 2% Citi Double Cash (which is really TY points, coupled with TY Premiere) or possibly Chase Ink business Unlimited which I think is 1.5% in Chase UR or flat 2% cashback.

    IMO, the 10% off is financially the best. $2,000 fridge = $200 off with 10% HD credit card. Vs. 2,040 TY points (even coupled, it would be worth what, $100 most?)

    Keep in mind, this is non-SUB MSR spend (as Ben states) and as Ben also states, highly specific to what you charge and if you need/value perks. I don't fly enough to warrant/use any sort of status on an airline or travel enough for hotel status.

  4. Gentleman Jack Darby Guest

    You forgot the Bank of America Premium Rewards Visa card with Preferred Rewards Platinum Honors status which earns 2.625% (everyone always forgets the extra five-thousandth) cash back in the "other" category.

    No excuse why someone spending USD 15K on a Hyatt card or on other cards at the levels needed to unlock additional benefits mentioned in the article shouldn't have at least USD 100K parked in an investment account with BofA to take advantage of...

    You forgot the Bank of America Premium Rewards Visa card with Preferred Rewards Platinum Honors status which earns 2.625% (everyone always forgets the extra five-thousandth) cash back in the "other" category.

    No excuse why someone spending USD 15K on a Hyatt card or on other cards at the levels needed to unlock additional benefits mentioned in the article shouldn't have at least USD 100K parked in an investment account with BofA to take advantage of the great return on this card; really makes the "other" category decision very easy.

    Another benefit of this card is that from time-to-time, BofA also makes additional spending incentives available to cardholders. I just received a bonus of an additional 11,500 points (about USD 115) for meeting some spending threshold; never received anything from BofA explaining that I was eligible for a bonus nor could BofA CS tell me why I earned it but they assured me it was not an error and would not be clawed back.

    Give this card some luv!

    1. Emme Guest

      Even better is BOA premium elite. 20% fewer points needed when redeemed for flights, which translates to a 25% multiplier. So 2.625% becomes 3.281% cash back everywhere. Also the US bank reserve returns 4.5% on mobile purchases, no limits.

    2. Gentleman Jack Darby Guest

      @Emme:

      Oopsie, forgot to mention the annual fees on those two cards:

      USD 550 on the BofA Premium Rewards Elite and USD 400 on the U.S. Bank Altitude Reserve; for those annual fees, there are better travel cards out there.

      Also, the BofA Premium Rewards Elite earns the same as the Premium Rewards card: 2 points on travel and dining and 1.5 points on everything else, which translates to 3.5 points on travel and dining and 2.625 points on everything else.

    3. Emme Guest

      And you forgot to mention the credits

      USBAR has $325 travel credits, super easy to use. Net fee is $75, or even $60 if the $325 spend is all on travel.

      BOA has $450 in credits, again easy to use. Net fee is $100.

      You have the earnings of the BOA card down. I am taking about the 20% points discount on flights that the card offers. So multiply all the earnings by...

      And you forgot to mention the credits

      USBAR has $325 travel credits, super easy to use. Net fee is $75, or even $60 if the $325 spend is all on travel.

      BOA has $450 in credits, again easy to use. Net fee is $100.

      You have the earnings of the BOA card down. I am taking about the 20% points discount on flights that the card offers. So multiply all the earnings by an additional 1.25.

      Not saying these are the best travel cards. These are likely the best cashback travel cards. My point is, considering that you can get 3.281% - 4.5% cashback consistently on all purchases, make sure that the value you get from points is not outclassed by these cards.

  5. Lee Guest

    It depends on what one defines as "large." To some people, a "large" purchase might exceed the likely credit limit on most cards. Which would force a person to use a charge card. Then, the field of contenders is quite narrow, with the Amex Business Platinum being a prime candidate.

  6. CERTIFIED Member

    When I make a large purchase I’m not worried about points. I’m worried about protection. Will the credit card have my back if something goes wrong? If it’s AMEX, the answer is yes. AMEX has resolved thousands of dollars of disputes in my favor that I don’t think other issuers would have. So AMEX gets all my big ticket expenditures.

  7. Jake Guest

    @grichard's suggestion is great. Otherwise, I would put it on BOA premium rewards card to get 2.625% cash back. Given the poor value that most people with less than generously flexible schedules get with airline & hotel points, I think it's best to aim for the most cash back.

  8. grichard Guest

    If the big purchase is at a retailer, check out the option of making the purchase and simultaneously opening a store charge card. They sometimes have lucrative first-day discounts.

    A few years ago I opened a Home Depot card when I ordered about $30K of cabinets for a kitchen rehab, and they did indeed give me the promised 10% off.

  9. Kyle Guest

    What about the Biz Plat at 1.5x on purchases over $5,000?

    1. Mark P Gold

      Seemingly inconsequential if you also have the Blue Business Plus which is 2x on everything.

    2. Jim Lovejoy Guest

      As long as you don't go over the $50K limit for the 2x points.

      It's not applicable to most of us, but this year I had an unexpected expense of 18K, if I had also put my estimated taxes and property taxes on the card, I would have had to be careful to avoid going over the limit.

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CERTIFIED Member

When I make a large purchase I’m not worried about points. I’m worried about protection. Will the credit card have my back if something goes wrong? If it’s AMEX, the answer is yes. AMEX has resolved thousands of dollars of disputes in my favor that I don’t think other issuers would have. So AMEX gets all my big ticket expenditures.

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grichard Guest

If the big purchase is at a retailer, check out the option of making the purchase and simultaneously opening a store charge card. They sometimes have lucrative first-day discounts. A few years ago I opened a Home Depot card when I ordered about $30K of cabinets for a kitchen rehab, and they did indeed give me the promised 10% off.

1
Emme Guest

And you forgot to mention the credits USBAR has $325 travel credits, super easy to use. Net fee is $75, or even $60 if the $325 spend is all on travel. BOA has $450 in credits, again easy to use. Net fee is $100. You have the earnings of the BOA card down. I am taking about the 20% points discount on flights that the card offers. So multiply all the earnings by an additional 1.25. Not saying these are the best travel cards. These are likely the best cashback travel cards. My point is, considering that you can get 3.281% - 4.5% cashback consistently on all purchases, make sure that the value you get from points is not outclassed by these cards.

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