Credit Card Basics
How to Meet Minimum Spend (Even With Low Expenses)
In order to earn welcome offers, you must meet the minimum spend requirements outlined in the terms and conditions.
No exceptions.
And remember the rules of travel booking with points.
Booking with points is not about spending more money on credit cards. It's about leveraging your regular monthly spending in such a way that you get more points.
In order for travel points to pay off, you need to be using your regular spending to meet your minimum spending requirements, not buying more.
Does that mean you should never apply for a card with a higher minimum spending requirement than you usually spend?
No, but it does mean you need to be strategic about what cards you apply for and when, especially when the minimum spend requirements are high for you.
One of the best times to apply for a new credit card is when you have expected (or unexpected) larger expenses — things like auto insurance, property taxes, home repairs, medical bills. These types of expenses are unavoidable but with a new credit card bonus, you at least get some travel out of it!
Sometimes there are 2–3% fees to pay expenses — such as utility bills, property taxes, income taxes, and contractors — with a credit card. If you are trying to meet a minimum spend, and won't be able to meet it otherwise, it may be worth paying the fee to help you hit your bonus.
Ideas to Help Meet Your Minimum Spend
Move all your regular spending to your new card
Groceries, utilities, monthly services, etc. Every little bit adds up. Be sure to add the new card information to your partner's mobile payment app as well so that he or she can put their spending on your new card too.
Buy store gift cards to places you shop regularly
The goal is to not increase your spending in order to meet your minimum spend requirements. By buying store gift cards to places you regularly shop — like Target, Costco, Walmart, etc — you'll be shifting your spending forward. Just be sure to keep track of your gift cards and not to use them as an excuse to spend more!
Prepay your insurance
If you are able to pay your home, auto, umbrella, etc insurance(s) all at once, opening a card around when your insurance is due is a great way to ensure you meet your minimum spend.
Pay your property tax
Some counties may allow you to pay your property tax using your credit card without a fee. Otherwise, you can expect to pay a fee of 2–3%. If you are trying to meet a sign up bonus, it might be worth paying the fee.
You can also see if your county accepts payments through PayPal Bill Pay, which may enable you to pay without fees.
Fund microloans through Kiva
Kiva is an international non-profit that works to help those in underserved communities access capital so that they can improve their lives.
Choose where to make an impact and make a loan of $25 or more. When you get repaid, you can choose someone else to help.
Make a donation
If you have any organizations you regularly donate towards, make a larger donation rather than spreading it out to help meet your minimum spend. If you don't typically donate to any causes, consider starting!
Open a new bank account and fund it with your credit card
Even better if you find a bank offering a sign up incentive so that you can actually turn this into a money maker! More on this here.
Pay your daycare expenses and school tuition
Use your credit card to pay for daycare and/or school.
Prepay monthly expenses
See about prepaying monthly expenses, including gym memberships and subscription services. You may be able to overpay some bills and then this overpayment will be credited towards your next statement.
Pay your federal taxes
This will incur a fee, but it may be worth it to pay all or part of your federal taxes on a card if you are working towards a bonus. The fee is as low as 1.85%, depending on which service you use. You can read Doctor of Credit's summary on the different methods for paying federal taxes with a card here.
Ask extended family if you can pay a bill
They can send you the money to cover the bill, and you can get closer towards your bonus!
Pick up the tab when you go out with friends and have them pay you back
Gone are the days when everyone has to fish cash out of their wallet to pay you back. Have them use an app like Venmo and have the money deposited right into your bank account.
