How to meet credit card minimum spending requirements

Many travel credit cards feature excellent welcome bonuses for new cardholders. However, you generally need to spend a particular amount on your new card within a specific time period to earn the bonus — and this required spending may exceed what you would typically spend on credit cards.

As such, we frequently get the question: “How do I hit the minimum requirement if I don’t normally spend that much on credit cards?” After all, you don’t want to make unnecessary or extravagant purchases, but you also don’t want to miss out on earning a valuable welcome bonus.

So, let’s discuss some strategies for meeting the minimum spending requirements on a new card.

Important considerations

Before I introduce ways to meet the minimum spending threshold on your new card, let’s go through a few critical points.

First, note that paying your card’s annual fee usually does not count toward the required minimum spending amount. Returns, statement credits and refunded purchases may also reduce your qualifying spending.

Second, read the fine print regarding eligibility for the welcome offer. After all, most cards restrict who can earn a bonus and the types of purchases that count toward the required minimum spending. If you have questions about your progress toward reaching a card’s minimum spending requirements for a bonus, call the number on the back of your card.

Third, understand that the period to meet the minimum spending requirement usually begins when you are approved for the card, not when you receive it in the mail. For certain issuers, you can request expedited delivery of your card, while others may provide an instant card number upon approval. But generally, you’ll have to wait a week or more to receive your card.

Finally, note that most card issuers exclude some purchases from the minimum spending threshold. For example, the offer terms for the American Express Platinum Card® state that the following won’t count: “Fees or interest charges; purchases of travelers checks; purchases or reloading of prepaid cards; purchases of gift cards; person-to-person payments; or purchases of other cash equivalents.”

Related: Credit card welcome bonuses you can earn with $1,000 (or less) in spending

Buy everything with your new card

When working toward earning a bonus on a new card, I typically use it for all purchases, even if they don’t fall into a specific bonus category.

Normally, I’d rather put my dining expenses on one of the best credit cards for dining and my grocery purchases on one of the best credit cards for groceries. Plus, I like to use a card that offers travel insurance when booking flights and trains.

However, if I’m struggling to reach the minimum spending requirements for a bonus, I’ll temporarily switch all of my spending to that card.

Related: How to choose the best credit card for you

Pay your rent or mortgage

Another method to consider is paying your rent or mortgage with your new card. You may be able to find a landlord, apartment complex or bank that will allow you to pay your rent or mortgage by credit card without a transaction fee, but this is relatively rare.

Bilt cardholders can pay eligible rent and mortgage expenses through Bilt without a transaction fee, while non-Bilt credit cards incur a 3% processing fee. Other third-party services may also let you pay rent or other eligible bills with a credit card for a fee. Be sure to compare the fee with the value of the welcome bonus, and confirm that the service supports your particular card and payment type.

Related: When you should (and shouldn’t) pay bills with your credit card

Prepay your insurance, utilities and other regular expenses

Another way to boost your spending is to prepay certain expenses.

Many utility, phone and insurance companies will bill you monthly, but some may let you overpay. So, you might be able to add an extra $100 to your utility bill payment for several months, or you could prepay three or even six months of insurance to ensure you’re reaching the amount needed to earn your welcome bonus.

Another option would be to pay an annual or biannual bill early. If you’re struggling to meet a spending requirement, look ahead and see what bills are due soon. Likewise, it could make sense to prepay other recurring expenses.

However, before adding on these extra expenses, ensure you’ll still be able to pay your card’s statement balance in full.

Related: 9 things you didn’t know you could pay for with a credit card

Pick up the tab

Many of my friends and family still use cash or debit cards when we’re at a restaurant or bar — and I’ve frequently found that restaurant staff won’t split a check across more than a couple of payment methods.

One option is to put the entire meal on your card. Then, you can have everyone give you cash or send funds via an online service like PayPal or Venmo. Because you receive the funds to cover their portion of the bill, your only actual out-of-pocket expense is your meal.

Of course, you may not want the hassle of chasing down any less-than-reliable friends who don’t pay immediately. But if you can manage that wrinkle, group meals can help you meet minimum spending requirements.

Related: This overlooked dining program is one of the most generous and gets you $25 off your very first meal

Donate to charity

Although many people give cash or write checks to their favorite charities, donating with a points-earning credit card is also possible. Some credit cards even offer category-specific bonuses on charitable donations.

If you’re looking to finish off a minimum spending requirement, donating to your favorite charity is a great way to do so.

Related: How you can donate your points and miles to charity

Pay your taxes

You may be able to pay your taxes with a credit card. You can use ACI Payments, Inc. as a third-party service for property and state taxes, and you can check the IRS list of tax payment service providers to consider your options when paying federal taxes.

Consider the fees associated with each method since additional charges may negate the value of any points you earn. But, in some cases, it can be worth it.

Related: Should I pay with a rewards credit card even if it incurs fees?

Purchase points or miles

Typically, you won’t want to buy points or miles unless you have a planned redemption in mind and have found the award space you need. After all, your points or miles could suddenly drop in value if the program devalues its awards.

Even so, purchasing points or miles with a credit card can be an excellent way to meet a minimum spending threshold, especially if you can redeem them soon. However, if you plan to go this route, waiting for a buy points or miles promotion is best.

Related: Buying points and miles saved me over $1,000 on flights and a hotel stay

Put part of a planned vehicle purchase on your card

If you’re looking for a new car, consider using a credit card to buy it. You may not be able to charge the entire purchase to your card, but you could still get a sizable chunk of your minimum spending out of the way with a partial payment.

Many dealerships will let you put $2,000 to $5,000 on a card, but it’s best to confirm the vehicle’s total purchase price before discussing that possibility. Of course, this is only a good idea if you need to purchase a car.

Related: The best credit cards for purchasing a car

Get reimbursed for business expenses

It’s best to get a small-business credit card to separate your personal and business expenses. But, if you’re in a pinch and have a short window to meet the minimum spending requirements on a new credit card, it could be worth using a personal credit card for business expenses and getting reimbursed.

Check with your employer to see whether you can use your personal card for business expenses. But be careful not to bite off more than you can chew, as reimbursement may take a while. As such, you may need to pay the balance on your card before the reimbursement from your company hits your bank account.

Ask friends and family for help

If you’re out of ideas about meeting the minimum spending requirements on your new card, you could enlist the help of trusted family or friends. For example, if you’re a college student, you could ask your parents if you can pay their monthly bills using your credit card. They’d then transfer the money to you immediately after the bills are paid.

However, I only recommend paying the bills of people you trust. After all, you’ll ultimately be on the hook if they decide not to reimburse you.

Bottom line

I recommend putting some or all of your credit card spending on your new card when you’re working toward earning a welcome bonus. However, if your regular credit card spending isn’t enough to reach the bonus, you can leverage some of these strategies to boost your spending.

But make sure you have enough funds in your bank account to pay off your statement balance in full each month. After all, paying interest or late fees will effectively decrease the value of any bonus you earn.

Let us know in the comments below your favorite ways to meet the spending requirements and earn the bonus on a new card.