Make Minimum Spend for Credit Card Sign-up Bonus

So you finally found the credit card that you want. The card looks great. It has a great sign-up bonus. However, the only problem is that in order to get the sign-up bonus, you have to make a minimum spend on the card within 3 months.

How are you going to meet the $1000, $3000 or even $7000 spending requirements on the card within 90 days in order to qualify for the sign up bonus?

What is Minimum Spend?

Let’s start by defining minimum spend. The credit card you sign up for typically stipulates that you must spend a certain amount of money using the credit card within 3 months in order to qualify for the bonus.

For example: the World of Hyatt Chase Credit Card requires you to complete $3,000 in purchases on the card before awarding 30,000 Bonus points.

Some cards have more complicated goals with milestones.

For example: the United Explorer MileagePlus Credit Card from Chase rewards a 60,000 bonus mile after you spend $3000 on purchases int he first 3 months your account is open. Then you can earn an additional 10,000 bonus miles after you spend $6000 total on purchases in the first 6 months your account is open. In other words, you can earn up to a total of 70,000 bonus miles if you spend $6000 within the first 6 months of your account open.

Minimum spend is therefore the amount you have to spend on your credit card within a certain period of time to qualify for the promotional sign-up bonus. Sometimes you may hear this referred to with the phrase “making spend”.

Ways to Make Minimum Spend for Free

There are many ways of tackling the minimum spend problem. Below are some common ideas and situations where you can put spend on your credit card without additional fees.

Buy Stuff You Need Today

Buy stuff you already need such as groceries and gas. When you are buying everyday items, use your new credit card. Have you been procrastinating from replacing worn shoes with new ones? Have you been meaning to get new glasses? Making purchases for things you actually need is the best way to “make spend” for your credit card.

Buy Stuff You Need in the Future

Buy stuff you plan to get in the future. Do you typically buy Christmas gifts in December, but it’s only July? Buy those gifts today on the card and stock them up. What you are essentially doing is front-loading purchases that you will have to make anyway in the future. For example, you can also choose to buy a larger stock of toiler paper than normal (as long as you have somewhere to store it) and use that in the future. It is important to remember the time limit to make spend.

Buy Gift Cards from Stores, Restaurants, and Gas Stations

Does the store, restaurant, or gas station you frequent have gift cards? Again, this is another example of buying something today that you will use in the future. Buy the gift card now to meet the minimum spend of your credit card. Later, continue to use the gift card at your favorite store once you are no longer pressured to put certain spend on your credit card within a time period.

Pick Up the Tab for Group Activities

When eating out with friends, opt to pick up the bill “for their convenience”, and ask them to pay you back in cash, Venmo, or Paypal. This is a great way to increase your spend amount on your credit card now without actually carrying that expense yourself. This applies for group activities such going out to concerts, movies, or even go-karting as well.

Pay or Pre-Pay Bills that Accept Credit Cards

Pay or pre-pay bills that accept credit cards. Many of the bills you are paying every month will accept credit cards. Moreover, if you overpay them, they will give you credit that can be applied to future purchases, For example, some mobile carriers such as T-mobile accepts credit card payments for bills. They also allow you to pre-pay bills and retain credit on your account to be used for future payments. This may be possible for some cable and utilities companies too. Some may have credit card fees associated, but many do not.

Buy FSA-eligibile Medical Products

When buying legitimate medical expenses you would normally buy with your FSA or HSA card, opt to use your own credit card instead. This is almost always allowed. The only downside is that you have to fill out some paperwork to make a claim with your benefit organization to get that cash back.

Pay for Professional Services

If you pay for services such as day care, salons, contractors, or any other professional services, see if they take credit card. Pay for current and/or future services with your credit card to make minimum spend within your required time line. In addition, ask those services whether pre-paying provides a discount on services!

Fund New Checking or Saving Accounts

When opening a new checking or saving account at a bank, the bank sometimes allow you to fund the initial account with a credit card. Usually, this amount is relatively low such as being a limit of $500, but your mile may vary depending on the bank.

Bottom Line

The promotional sign-up bonus for new credit are often incredibly enticing. The points or cash back bonus is up for grabs. Yet, some people have underestimated the difficulty of making that spend within the short time period of 3 months. On the other hand, some people have overestimated the difficulty of making spend within 3 months, and be discouraged from applying for a specific credit card.

For most people, a typical 3-month period of purchases would not cover the minimum spend required to get their credit card bonus; whether it is $3000, $5000, or even $7000. However, the list of activities I’ve shown you here illustrates that maybe you make a whole year’s worth of purchases in the 3-month time period. Is your year credit card spending going to be less than $3000, $5000, or $7000? Moreover, you can also transform other people’s purchases into your credit card spend if they are okay with you making the purchase, and they paying you back.

Do not be discouraged with the minimum spend requirement for a credit card’s sign-up bonus. There are indeed many ways to tackle the challenge. What’s important is really to find the credit card that is right for you.