One of the awesome things about applying for credit cards is that there are often generous welcome bonuses, whereby you can earn significant rewards (either cash or points) by spending a certain amount of money on a card within a specified timeframe. This is an awesome opportunity to supercharge your points earning potential.
The catch is, spending requirements to earn credit card bonuses can vary massively. Some bonuses require making a single purchase, while others may require spending tens of thousands of dollars. For some people, achieving a credit card spending requirement can be challenging. So in this post, I wanted to share some general tips for unlocking the spending requirements on credit cards with (relative) ease.
In this post:
How to boost your credit card spending, earn bonuses
Okay, admittedly there’s no magic to boosting your credit card spending, and the most obvious thing you can do is to simply shift all your everyday spending to a particular card. Still, I figured I’d share how I’d go about planning credit card applications and approaching minimum spending requirements, plus some creative ways to boost your spending potential.
If you’re experienced in miles & points, then all of these tips will probably be obvious. However, for newbies, hopefully there’s at least something a little useful. With that in mind, here are some thoughts, in no particular order…
Time your credit card applications strategically
While you absolutely can apply for multiple credit cards in a day, I always recommend timing your applications carefully in terms of ensuring that you can complete a minimum spending requirement.
One reason to space out credit card applications is so that you can consistently be working toward a spending requirement. Similarly, if you know you have big purchases coming up, you might want to pick up a few cards prior to that, so that you can knock out multiple spending requirements easily.
Credit card minimum spending requirements to unlock bonuses vary massively, so this strategy would be very different if you have a $1,000 minimum spending requirement, rather than a $30,000 spending requirement, for example. Beyond welcome bonuses, the same principle applies when deciding on the best credit cards for large purchases.
Don’t overspend just to reach a spending requirement
Credit cards can unlock incredible rewards that otherwise might not be accessible. However, always use credit cards responsibly, and don’t “waste” money just to be able to reach a minimum spending requirement.
Now, I think there’s potentially merit to prepaying some expenses in order to unlock a bonus, assuming you are in a position to do that, and the opportunity cost of the money isn’t too high (there are savings accounts offering high interest rates).
But still, just as you generally shouldn’t finance charges on credit cards, you also don’t want to waste money just to earn credit card bonuses.
Pay your taxes by credit card when possible
The single way that I generate the most points from my credit card spending is by paying my taxes by credit card. For those of us who are self-employed or who are in a position to pay quarterly taxes by credit card, this is an amazing opportunity. You can pay taxes for a fee of under 2%, and earn great rewards in return. I find this to be worthwhile even if you’re not going for a minimum spending requirement.
If you’re a homeowner, you can often also pay your property taxes by credit card for a fee, and that could be well worth it. Even if the fee is in the range of 2-3%, this could make a lot of sense if it would help you unlock a credit card bonus that you couldn’t otherwise qualify for.
Pre-pay recurring expenses (insurance, utilities, etc.)
Admittedly this will depend on your specific situation, but many people don’t realize that it’s possible to pay things like insurance and utilities by credit card. Not only can you often pay them by credit card, but you can even pre-pay these expenses, and in some cases, can even get a discount for paying in advance.
For example, a while back I had a was in a bind to complete a minimum spending requirement, so I pre-paid some health insurance premiums for a few months.
Buy gift cards for businesses you frequent
If you’re struggling to come up with other ways to reach a spending requirement, then there’s merit to buying gift cards, whether it’s for your local supermarket, gas station, or favorite restaurant.
Heck, nowadays I’d say there’s even another good strategy. With airlines not having change fees on most kinds of tickets, you could buy a ticket with an airline you fly frequently, and then bank that credit toward future flights. With most airlines, you typically have at least a year to use a credit. If you’re a frequent flyer with a particular airline, I’d consider that money to basically be good as cash.
Pay your rent or mortgage by credit card
In most cases it might not be possible to pay rent or a mortgage directly by credit card. While this is an area where Bilt is innovative, it’s not the only way you can use these large expenses to generate credit card spending.
There are also bill pay services like Plastiq, which let you pay many kinds of bills by credit card for a fee, and then they’ll send a check or wire on your behalf, and charge to your credit card. There are often terms and restrictions associated with this, so it’s something you’ll want to look into more closely if interested.
Add authorized users, ask others for help
There’s no shame in asking others for help sometimes, and I think reaching a credit card minimum spending requirement is a perfectly okay area to ask people you’re close to for help. 😉 You can approach this in a couple of ways.
For one, you can always add family members or close friends as authorized users, and their purchases will count toward your minimum spending requirement on a credit card (of course you’re also on the hook for the bill). Beyond that, if you’re going to dinner or planning something else with friends that’s costly, see if they’ll let you put the purchase on your card, and then they can pay you back via Venmo, or in some other way.
Bottom line
Credit card welcome bonuses are some of the best way to rack up miles & points quickly. In some cases, the spending requirements can be significant, though the rewards can be equally big.
If you struggle to reach credit card minimum spending requirements under normal circumstances, I recommend applying for cards around the time that you know you’ll have big expenses. Even beyond that, there are plenty of ways to boost your spending, from paying taxes by credit card, to buying gift cards for businesses you frequent.
Just be responsible, and don’t spend more money in the long run than you’d otherwise spend…
What’s your approach to reaching big credit card minimum spending requirements?
Buy am expensive item on Costco.com, such as a MacBook, using the card, then return it in-store a few days later and tap your debit card so the refund goes to your checking account.
Dont think you can send refund to a card different from the one used for purchase
My husband has purchased something at Costco with his card, and then I have returned it to my card. It has happened more than once, although it wasn’t used for that the reason above.
Ben, what card are you paying tax with? Best I can accomplish is 2% with CO Venture, which barely offsets the fees. I mean, I do it anyway but it’s hardly a great deal…
What about buying a refundable first class ticket? That would quickly reach your spending requirement for the bonus. When the points deposit in your account, refund the ticket. Sounds like an easy idea but I wonder if card companies already aware of that tactic
I think that any refunds will not count toward your minimum spending requirement for the bonus as stated in the requirements outlined by the CC companies. They do reserve the right to take back the bonus in the scenario you pointed out as well as any points ‘earned’ from the airfare.
Amex removes points for cancellations. They’re not stupid.
and then it's usually too late to do more spend for the SUB
Of you do points game with spouse or friend, stagger your cc applications and help each other with charges. I buy gift cards for grocery stores and Netflix to ensure I don't waste the spend on something i didn't intend to buy. I retired early which means I have to buy super expensive medical insurance on my own. That's nearly $1500/month I put on a cc.
Another good post. Property tax bills just landed. Didn’t need to put so much other stuff on the new (2nd this year) AmEx Biz Gold. The 155,000 SUB has posted
I was going to lay off churning for a few months, but maybe there’s some worthwhile points out there?