10 tips to meet your spending goals and earn the bonus on a new card

Many travel credit cards offer generous welcome bonuses for new users. However, to earn these rewards, you usually need to spend a specific amount within a set timeframe, which may be higher than your typical spending habits on credit cards.

We often hear the question: "How can I meet the minimum spending requirement if I don’t usually spend that much on credit cards?" You don’t want to make unnecessary purchases, but you also don’t want to miss out on a valuable sign-up bonus.

Today, let’s explore 10 ways to meet the minimum spending requirements for a new credit card.

Key things to keep in mind

Before diving into strategies for meeting the minimum spending requirement on your new card, let’s review four important points.

First, remember that paying the card's annual fee typically doesn't count toward the required spending threshold.

Second, carefully review the fine print about the eligibility for the sign-up bonus or welcome offer. Many cards have restrictions on who qualifies for the bonus and what types of purchases count toward the minimum spend. If you're unsure about your progress, call the customer service number on the back of your card for clarification.

Third, keep in mind that the clock for meeting your minimum spending requirement starts when your card is approved, not when it arrives in the mail. Some issuers may offer expedited delivery, or provide a virtual number upon approval, but typically, you'll need to wait at least a week for your physical card.

Finally, remember that most card issuers exclude certain purchases from counting toward your minimum spend. For example, The Platinum Card® from American Express excludes the following from the required spend:

Fees or interest charges; purchases of traveler's checks; buying or reloading prepaid cards; gift card purchases; person-to-person payments; and other transactions considered cash equivalents.

Naturally, you’ll want to steer clear of most of these cash-like transactions, as they could trigger cash advance fees.

Make all your purchases with the new card

When working towards earning a bonus on a new card, I usually use it for every purchase — even if those purchases don’t fall under a specific bonus category.

Typically, I prefer to use the best credit cards for dining for my restaurant bills, and the best cards for groceries for my food shopping. I also like to use a card with great travel protections when booking trips.

But if I'm finding it difficult to meet the minimum spending requirement for a bonus, I’ll temporarily switch all my spending to that card.

Pay your rent or mortgage

One option to consider is paying your rent or mortgage with your new card. While it’s uncommon to find a landlord or bank that allows credit card payments without a fee, it’s possible. The Bilt Mastercard® is an exception (check rates and fees for details).

Alternatively, you can use a service like Plastiq, which charges up to a 2.9% fee for paying bills with a credit card that wouldn't normally accept it. This service is usually only worth it if you're trying to hit a minimum spending target or earn a card perk that requires significant spending.

Prepay your insurance, utilities, and other recurring bills

Another way to boost your spending is by prepaying for some of your regular expenses. Many utility, phone, and insurance companies allow you to overpay on your monthly bills. You could add an extra $100 to your utility payment for a few months or prepay several months of insurance to help you meet the minimum spend for your sign-up bonus.

Another approach is to pay an annual or semi-annual bill in advance. If you're having trouble hitting your spending goal, check your upcoming bills and consider prepaying. However, before committing to extra charges, make sure you'll be able to pay off your card's statement balance in full.

Cover the bill for others

Many people I know still prefer to use cash or debit cards when dining out, and I've often encountered situations where the restaurant staff won't split the check across more than a couple of cards.

One idea is to pay for the entire meal with your card. Then, you can collect cash from everyone or have them send money through services like PayPal or Venmo. Since you're reimbursed for their portion, your only actual expense is your own meal.

Of course, you might not want to deal with the inconvenience of tracking down friends who are slow to repay. But if you're willing to handle that, hosting group meals can be a great way to reach your spending goal.

Make a charitable donation

While many people choose to donate through cash or checks, you can often donate via a credit card that earns rewards points. Some cards even offer bonus rewards for charitable contributions.

If you're trying to meet a minimum spending requirement, making a donation to your preferred charity can be an excellent way to reach your goal.

Pay your taxes

It's possible to pay your taxes with a credit card. For property and state taxes, you can use third-party services like ACI Payments, Inc. For federal taxes, the IRS has a list of approved tax payment providers. However, keep in mind that the fees associated with these services may outweigh the rewards you earn, so evaluate each option carefully. In some cases, it could still be worthwhile.

Personally, I'd use PayUSAtax, a trusted IRS-approved provider, to pay my federal taxes with a credit card. The service charges a 1.82% fee for credit card payments, but that cost could be easily outweighed by the rewards or welcome bonus you earn. Even for ongoing points accumulation, paying taxes via credit card could be a smart move.

Purchase points or miles

Generally, it's not advisable to buy points or miles unless you already have a specific redemption in mind and the award space is available. The value of your points or miles could drop unexpectedly if the program devalues its rewards.

That being said, using a credit card to purchase points or miles can be a great strategy to meet a minimum spending requirement, particularly if you plan to redeem the points soon. However, it's best to wait for a bonus points promotion before buying.

Put a down payment on a new car

If you're in the market for a new car, consider putting a portion of your purchase on a credit card. While you may not be able to charge the full amount, making a down payment with your card can help you hit a good chunk of your minimum spending target.

Many dealerships allow you to charge anywhere from $2,000 to $5,000 on a card. It's always a good idea to confirm the details with the salesperson before finalizing your deal, but this can be a great option if you're planning to buy a car.

Get reimbursed for business expenses

For better tracking, it's ideal to use a small-business credit card for work-related expenses. However, if you're trying to meet a new card's spending threshold quickly, you might consider using your personal card for business expenses, as long as you plan to get reimbursed.

Before using your personal credit card for business expenses, check with your employer to see if that's an option. Just remember, reimbursement might take time. So, you may have to pay your card balance before the money from your company hits your account.

Ask friends and family for help

If you're running out of ideas to meet the minimum spending requirements, consider reaching out to trusted family members or friends. For instance, college students can ask their parents if they can pay their bills using the credit card, with the promise of getting reimbursed right after the payment is made.

However, I suggest only paying bills for people you trust. Remember, you'll be responsible if they choose not to reimburse you.

Bottom line

If you're aiming for a welcome or sign-up bonus, I recommend using your new credit card for some or all of your purchases. If your usual spending isn't quite enough to reach the required threshold, the strategies mentioned above can help you boost your spending.

Just make sure you have enough funds in your account to pay off the balance in full every month. After all, paying interest or late fees will reduce the value of the bonus you earned.

To rack up a significant amount of points, check out our guide to the best credit card welcome offers.