New cards offer very appealing sign up bonuses. To unlock those sign up bonuses, you have to meet the minimum spending requirement stated in the card agreement. These minimum spending requirements are usually around $3,000 to $5,000 and must be done within a certain period of time, usually 90 days.
MEETING MINIMUM SPENDING REQUIREMENTS – THE RISKS
Sign up bonuses are a great way to boost your points balance and get you closer to that dream vacation. That’s a fact! But don’t let that blind you from the requirements needed to earn that sign up bonus. Before signing up for a card, make sure that you’re able to COMFORTABLY meet the minimum spending requirements for the sign up bonus.
I want to emphasize this because the point of this hobby is to travel for cheap. If you get into any unnecessary debt to meet the minimum spending requirements, then that defeats the purpose of this hobby. Any interest that you pay to earn points negates the value that you get from these points. That is probably the most important rule in this hobby. Do not get into debt!
HOW TO MEET THE MINIMUM SPENDING REQUIREMENTS
Now that we’ve gotten that out of the way, let’s discuss how to meet your minimum spending. For many, spending $3,000 to $5,000 in 90 days can be daunting, especially if you’re frugal with your spending. This may require you to get creative with your spending in order to earn that sign up bonus. Here are a few ways.
PLAN YOUR NEW CARD AROUND A BIG EXPENSE
So you been saving money for that new kitchen remodel and you have the funds to pay for it cash. You can plan applying for your new card for when you’ll be paying for your kitchen remodel. Think of other big expenses. Paying your taxes, tuition or a down payment on your new car could all be ways to help with earning a sign up bonus. This way you can use your new card to pay for this expense and cover most, if not all of your minimum spending requirements in one shot.
SHIFT ALL OF YOUR SPENDING TO YOUR NEW CARD
We’ve discussed a few cards that are ideal for spending at restaurants, supermarkets, airfare, etc. That’s great for maximizing spending on your current cards that offer bonus spending in certain categories. Yet when receiving a new card, it’s wise to shift ALL of your spending to this new card in order to meet the minimum spending requirements. Even if your new card doesn’t earn as many points per dollar as your current one on a certain category, use your new one until you meet the minimum spending requirements and earn that bonus. It’s only temporary.
GET AHEAD ON YOUR BILLS
Many of your bills will allow you to prepay for their services, and even offer a discount by doing so. If you’re used to paying your car insurance monthly, consider paying for 6 months or the entire year. Rent, utility bills, cell phone bills and other monthly subscriptions may allow you to prepay. Do this only if you’re able to cover the costs with cash.
GET OTHERS INVOLVED
Unfortunately, not everyone shares our passion for earning points and miles for free or almost free travel. If TRUSTED family and friends are not concerned with earning points, miles or other credit card rewards, then ask them to see if they will help you meet your minimum spending requirements. You can either ar set them up as an authorized user or allow them to use your card for purchases. Just make sure that they will pay you for charges incurred on your card.
TREAT EVERYONE TO DINNER – SORT OF
Following the same guidelines as just mentioned about getting others involved, paying for dinner could work the same way. If you have a large dinner get together planned for friends and family, you could offer to pick up the entire tab, and everyone could Venmo you later for their part of the bill.
PAY UPFRONT FOR OTHER REIMBURSED ITEMS
Medical expenses come to mind with this category. If you plan to get reimbursed through your Flexible Spending Account, use your new credit card to pay for the costs. Also, try to make arrangements to pay for medical costs up front, then have your insurance send you a check for what they were going to cover.
USE PLASTIQ
Many utility bills, landlords and banks don’t allow you to pay with credit cards. There’s a way around that though. By using Plastiq, you can use your credit card to pay these bills for a fee. I would only use this option to meet minimum spending requirements or if you’re using a promotion for fee free spending using Plastiq.
CONCLUSION
If you think outside of the box just a little bit, you can come up with effortless ways to put more spending on your card WITHOUT going into debt. By doing this you can plan for your next trip guilt free! How else do you meet minimum spending requirements? Comment down below. Thanks again for watching guys, I really appreciate it. If you haven’t already, like subscribe and got the notification bell. We’ll see you in the next one.
