Welcome Bonuses are the “Main Course” of Earning Points and Miles for Travel
Most credit cards require a minimum amount of money be charged on a card within a limited time frame in order to earn their welcome bonus. I would say the vast majority of cards on the market require between $2,000 – $10,000 to be spent, between 3-6 months, though there’s a wide variety.
Welcome bonuses are very lucrative and are the backbone of booking trips on points. So, it’s super important to make sure you meet the minimum spending amount, within the time frame, that the credit issuer requires to earn the welcome bonus! I would even add a bit more spending on the card over the minimum requirement, in case of something like a delayed posting of charges, or returns/refunds.
As much as you can put on a card, you should, until the minimum spending requirement is met. This is in order to earn the big bonus of rewards points. Just make you are able to pay your balance off in full (and not over-spending.)
The Everyday Spend Way
Here are examples of things that everyone spends money on, that you can probably put on a credit card to earn points from. These are just examples and are obviously just a starting point:
- Car gas, maintenance and labor
- Transit and transportation
- Groceries, and meals out (dining-in, taking-out)
- Utilities (even if the company charges a credit fee, I would argue that if it’s under about 5% it’s probably worth it for all those points!)
- Clothing
- Entertainment- cable, streaming
- Cell phone, internet
- Household utilities
- Hygiene items
- Household items- cleaning supplies, laundry supplies, storage solutions, dishes, light bulbs, etc.
- Kid’s items- school supplies, toys
- Pet supplies, vet bills
- Hobbies
The Medical Way
Those of us that are disabled and/or chronically ill spend a lot of money on health related expenses. Especially as an American, my out of pocket costs exceed $20k per year, on average, and that isn’t even including a big “one-off” purchase, such as a motorized scooter, or wheelchair.
If you have to spend the money anyway, you want to be earning rewards points! Especially for those of us with large medical bills, traveling on points and miles makes trips attainable, which we would never be able to otherwise afford.
So, here’s how you put those health care costs to work for you. Each of these can be charged to a credit card:
- Health care insurance premiums, if you’re paying for your own, or if you are self-employed. Even if there’s a fee, it’s probably worth it to meet a welcome bonus; you may decide the fees aren’t worth it on an on-going basis after that, though.
- Similarly, if you’re paying for your own Short or Long Term Disability insurance, Life insurance, or Long Term Care insurance, you can charge those premiums.
- Medications or pharmaceutical expenses.
- Medical equipment or supplies.
- Co-pays to the doctor/provider or office, facility fees, and all the rest. (Sometimes a facility will even let you pay your bigger bills on a payment plan, without interest!)
- Medical testing: imaging, acuity testing, procedures, and all the rest.
- Large equipment/supplies/expenses, such as mobility aids, hearing aids, home equipment or alterations, caregivers, and all the rest. Though, I would have a plan for paying a bigger expense (see later in this post!)
- Emergency department or urgent care charges/bills.
- If your insurance plan comes with an HSA, you can pay your medical bills on your card, then pull funds from your HSA to pay yourself back. You can even do this before your credit card bill comes due. Save all of those receipts so you can prove they were healthcare expenses for taxes, later!
- Similarly, if you have an FSA, you can pay medical bills for yourself or your family members and reimburse yourself. You can also reimburse yourself for family related expenses, such as over the counter drug store expenses, and childcare.
If you buy over the counter supplies (such as wound care, cold/flu medicine, feminine care, et cetera) from a drug store such as CVS, Walgreens, or RiteAid, check various shopping portals and look for coupons so you can make even more rewards back.
The Large Expense Way
Because your credit card needs to be paid in full every month, have a plan for where the money was coming from to pay off these expenses before charging them. But, there are many times where these larger expenses are unavoidable, and they just have to be budgeted for.
There are also credit cards out there that have larger minimum spend requirements, but are associated with better welcome bonus rewards. The banks always make it worth it to charge that much money on their card on them upfront. But, do some research and make sure that you can make that card work for you. For example, there is a Capital One Venture X business card that requires a $20k minimum spend, but rewards with 150,000 points! I don’t think it needs to be said, but- don’t apply for a card with a higher minimum spend than you can handle! There’s always another option out there.
Here are some ideas for bigger expenses, which can be broken up to meet more than one minimum spend requirement, or put on a single card to meet one large minimum:
- Taxes: local (including city and property, if you own a home), state, federal. The US feds charge a 1.8% fee, but way more than that can be made back on a welcome bonus. Many states don’t charge a fee when paying their taxes.
- Escrow: most of the charges included in escrow, including home owner’s or mortgage insurance, and property taxes (as above), can be separated out from mortgage payments and put on a card. Unfortunately, the mortgage itself can’t be put on a card (yet!) These other charges though, can be due annually, quarterly, or monthly- you’ll just need to call your mortgage broker to separate them.
- Rent: if you are paying rent, this can be put on a card. Actually, there is a card on the market that was made just for rent-payers, called Bilt.
- Home improvements: supplies and labor/vendors/contractors.
- Larger maintenance items for a vehicle you own: such as tires or major service.
- Down payment for a new (to you) car. (Or if you’re lucky, a big piece of entertainment, such as a boat or RV!)
- Home appliances
- Furniture
- Electronics, such as televisions, cell phones, tablets/computers, and all the rest
- Student loans or Tuition
- Group outings- when going out to dinner or on an excursion, offer to pay for everyone to meet your minimum spend. Have people pay you back with Venmo/Zelle/cash.
- Similar concept- reimbursable work expenses. Pay for work-related travel, equipment, uniforms, and all the rest- and have your employer pay you back, and/or deduct the expenses from your taxes later.
The Bottom Line
I hope I got some of those creative juices flowing for you and you are ready to go out there and earn all of the welcome bonuses! Even if not, I do hope this post gives you some ideas on things you can put on a card. Maybe this will help you put expenses on your cards which you haven’t been paying for before.
The main take-aways are these: make sure you’re only applying to cards which you can comfortably meet the required minimum spend on, keep track of your spending and make sure you meet the minimum (within the required time frame), and pay your bills in full, on time, at least every month. (There’s nothing saying you can’t pay more frequently- in fact, I check and pay off my bills twice each month, to make sure I don’t miss anything in the midst of brain fog!)
Credit cards are not meant to be in place of a savings account! Please don’t charge purchases on cards without already having the money to back those charges. You shouldn’t have to look at interest rates or transfer balance offers on a card when applying- because you should never be carrying a balance! Paying a late fee or interest makes this hobby not worth it!
But perhaps most importantly: leverage those rewards points. Put the money you’re already spending, to work for you in the form of free travel!