Credit cards that offer big bonuses all come with one catch: the minimum spend.
Minimum spends (a specified amount of money you have to charge on your card in a set period of time in order to be awarded the points or miles bonus) range from $500 – $10,000 and most commonly come with a term of 90 days.
If you’ve got your eye on a new credit card, but have no idea how you could ever manage to spend thousands of dollars in three months, don’t fear. There are lots of ways to reach your spending goal.
You may have heard stories about buying $1 coins with credit cards from the U.S. Mint or purchasing magical, reloadable money cards in order to reach your spending goal. Unfortunately, you can’t do either of these things anymore. Opportunities like these will always come and go (and are great when they exist), but the good news is they aren’t necessary to meet your minimum spend.
Here are eight tried and true methods to meet your minimum spend:
1. Plan Ahead for Big Spending.
Get a new card when you know you’ve got a big expense coming up. You know you’re putting a down payment on a new car in a few months? Most car dealerships will let you charge that on your credit card.
Bam! Minimum spend achieved. (Note: Don’t do this unless you have the money to pay it off right away.)
2. Use Online Payment Systems.
Put away your checkbook. Various online payment systems like Amazon, Paypal and Square will let you use your credit card to make payments to other individuals.
Can’t pay for your rent with your credit card? Ask your landlord if he or she would be willing to accept your payment via a free money transfer service like Amazon Payments. You can send up to $1,000 per month to any person with an Amazon account as a ‘goods and services’ transaction with a verified account.
3. Charge and Automate Everything.
Utilities, insurance, doctors’ bills, cable payments—nearly every service company will now accept payment by credit card. One reader recently shared how she pays her university tuition each semester on a new credit card to meet her minimum spend in order to earn enough points and miles for free travel during spring break.
4. Max Out Shopping Season.
Consider how to max out on miles during periods when you are doing the most shopping, like back to school and winter holidays. While you should never buy things you don’t need just to meet a minimum spend, it’s smart to strategically apply for a new credit card in the fall to cover all the spending you’ll already be doing between Thanksgiving and the New Year.
Tip: Shop from stores where you can maximize bonus miles per dollar. For example, if you’re working towards meeting the minimum on the Chase Ink Bold or Plus, head to office supply stores to receive 5x bonus points per dollar spent.
5. Prepay Bills or Purchase Gift Cards.
If you’ve got enough in the bank to float yourself a small loan, consider pre-paying bills or other upcoming expenses. Buying gift cards for stores and restaurants you frequent, like Starbucks, Home Depot, or your local supermarket is an easy way to pre-pay for expenses you know you’ll have in the month after you meet your minimum.
6. Get Reimbursed for Other People’s Purchases.
Poll your friends and family members to see if they have big purchases coming up. Offer to pay for big ticket work expenses like travel and let your office reimburse you. Pick up the bill at a big dinner and let your friends give you the cash. (But always be sure to collect the money at time of purchase or before your bill comes due).
7. Give.
Consolidate your annual charitable giving and make tax deductible donations during your 90 day minimum spend window. Non-profits are happy to take your money by credit card.
Tax deduction achieved! Minimum spend achieved!
8. Invest.
If you have a higher tolerance for risk, consider making investments with an online trading company like Loyal3 that allows you to pay with a credit card to buy up to $50 of stocks online per day.
Alternatively, fund a micro-business through a charitable organization like Kiva. In both cases you can eventually cash out your investment (but be sure to have enough in your bank account to pay off your card balance while you’re waiting).
If you put just a few of these tips into practice with a little bit of creativity, you’ll reach your minimum spend and be enjoying your big bonus in no time.
Happy spending!
Note: Always check the terms and conditions for the bonus of each new card you acquire. Be sure that any payments you make aren’t viewed by your credit card as a cash advance. If that happens you’ll be charged a fee, and the ‘advance’ won’t count towards your minimum spend.
