8 creative ways to meet a rewards card’s minimum spend requirement


Personal Finance Writer
Consumer finance expert, author and “Opening Credits” columnist.

8 creative ways to meet a rewards card's minimum spend requirement

Rewards credit cards
offering substantial sign-up bonuses can
be a fantastic way to profit with plastic. Play these cards right and
you can pocket tens of thousands of points that are transferable for airfare,
hotels or related travel expenditures, or that can be converted into cash or
statement credits.

To score those points, however, you’ve
got to follow the issuer’s rules: Charge a specified sum with the card within a
fixed time frame, which is typically three months from when the account is
opened. Fail to do so and you forfeit the prize.

Depending on your budget and lifestyle,
reaching the minimum spend requirement can be a challenge, so it pays to
explore outside-the-box options. Here are 8 creative ways to meet a new rewards
card minimum spend requirement:

8 creative ways to meet a rewards card minimum spend

1. Bulk
up and resell.

Head over to big-box retailers, such as Costco, suggests
Lou Haverty, founder of First Class Travel Guide, a website where
people can learn how to travel inexpensively on credit cards points. “The best
way to meet minimum spend for a new credit card is to use it for purchases of
merchandise at one of the large warehouse stores and sell that merchandise on
eBay or Amazon,” says Haverty. Concentrate on small nonperishables, such as
electronics, toys, tools and jewelry, so you don’t have to worry about spoilage
or running out of storage space. “Even if you lose a little in the process, it will
likely be less than the value of the bonus. It represents a good alternative to
spending money on things you don’t need or can’t afford. I’ve done it, but you
do have to have an entrepreneurial attitude.”

2. Charge
your child’s tuition.

If your child attends private
school, college, takes extracurricular classes or goes to a costly summer camp,
consider charging the expense. Because they tend to have lofty price tags (the national average private high school tuition is roughly $10,000), “It can be a great way to hit
the minimum spend,” says J.R. Duren,
a personal finance reporter at the product review website HighYa.com. Not only can it satisfy the requirement with very few
transactions, it omits the problem of trying to cobble together many lower cost
items, running short, then buying unnecessary random things at the last moment.
Just be aware that there may be a convenience fee to charge tuition. According
to a 2016 CreditCards.com
survey, most post-secondary schools accept credit cards for tuition,
but 57 percent add a fee, with the average being 2.75 percent of the payment
amount. For a $3,000 school charge, you could
be looking at a fee of $83. However,
if the value of the card rewards bonus seriously outweighs the cost of the fee,
and you can meet that minimum required spend with just one charge, then it can
make sense.

3. Repair your home at a discount.

Wait until a water heater blows or a roof caves in and you’ll really have an
expensive and unexpected bill to deal with. Yet if you make necessary repairs
before disaster strikes, you’ll come out ahead in the long run. “It’s called
preventive maintenance,” says Steve
Mannerburg, a contractor from Pittsburgh. “I
preach it all the time. You have a heating system that’s 25 years old, it’s at
the end of its life. Replace it when you have
the opportunity to shop around.” When
you have the funds saved and have identified what needs replacing or updating,
apply for that rewards card and charge your purchase, then pay off the balance
with your savings.

Put a rent payment (or two) on the card.

Few landlords accept credit cards for
rent payments, but that doesn’t mean it’s impossible. Third-party service
providers, such as Plastiq, RentMoola and RadPad, allow tenants to
pay their
rent with many types of credit cards
. There are fees involved, which are
usually around 2.5 to 3 percent of the transaction, but when done prudently it
can still work to your advantage. “When you’re trying to meet the minimum spend
requirements over a short period of time, purchases like that are totally worth
it,” says financial expert Lyn
Alden. After you’ve
reached the amount necessary for the bonus points, revert to cutting a check.

5. Enroll
in classes that will take your career to the next level.

If you’re stuck in a low-paying position or job you don’t like, a wise way to
reach a new rewards card minimum spend is to invest in your education. Check
out professional certificate programs offered at your local community college
or university. Or take language classes, get special training or complete your
college degree. Of course, some programs will cost far more than what you need
charge for the minimum spend, and some institutions may charge a transaction fee if you pay with a credit card, but as long as you stay out of debt, you’ll
enjoy double rewards: those from your credit card and greater earning

Pay for other people’s purchases, then collect the funds.

The total of your personal meals and
movies may be woefully insufficient for hitting a rewards card minimum spend in
a short time frame. Charge those of your loved ones, however, and you may be
able to achieve it. Shannon McLay, CEO of
Financial Gym
, is an advocate for picking up other people’s tabs,
under the right circumstances. “I had a client over for Thanksgiving who got a
new credit card for the points, and she paid for all the food and her mom’s
Christmas gifts,” says McLay. “She got in trouble from me because she spent so
much.” McLay’s admonition turned into admiration when the client explained that
her mother also paid her back right away. She paid the balance off and got the
points. This method should only be done when know for sure the person will be
reimbursing you immediately. “Use an app like Venmo to get repaid instantly,”
says McLay. The longer you wait, the harder it can be to get people to pay up.

7. Charge a portion of a new or used car down payment.

“Some auto dealers accept credit cards for a down payment,” says Kaja Olcott,
communications director for rewardexpert.com. Know, however,
that car dealerships often set limits on how much of a down payment can be put
on a credit card, but it may be just enough to meet your new
card’s spending
requirement. Again, this method only works if you already had a car purchase
planned, the down payment saved up and ready to reimburse your credit card in
full by the due date.

Grant a trusted person short-term charging rights.

Most credit cards allow account owners
to add authorized users (and some even sweeten the deal by giving additional
points for each user). The more people charging on a single account, the
quicker you can reach the minimum spend goal. That can make this a smart
technique – as long as you’re aware of the risks and take action to reduce
them. Authorized users bear no legal responsibility for debt they accumulate on
your card. “One client made someone an authorized user and he ran up over
$80,000,” says McLay. “He’s not paying her back so she’s on the hook.” Only add
trusted individuals to your account, and write out an agreement outlining what
the card should be used for and how much the person can charge and that the
charges need to be reimbursed in the same month they were made. Monitor
statements closely, then (kindly) remove the person from your card after you’ve
met the minimum spend.

Final warning: Do not carry a balance

Clearly creativity can get help you
meet a rewards card’s initial charging requirements, but be practical as well, by never, ever carrying a balance. Commit to paying those big bills in full. If you send less than the total due, interest will be added to the balance, which will dilute or even erase the value of the rewards points. 

So before applying, review your income, assets and budget carefully. If you’re confident you can and will keep the balance to zero, carry on.

“Never, ever make extraneous
purchases just for the sake of hitting that spending threshold,” says Duren.
“The act in itself is a bad financial decision and there’s a chance you might
set a pattern for future rewards credit cards.”

See related: 9 rewards card sign-up bonus mistakes, When it makes sense to charge kids’ school, day care costs

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