Credit card welcome bonuses are a great way to quickly bolster your points, miles or rewards' balances. But nearly all welcome offers come with a prerequisite to spend a specific amount of money within a certain amount of time.
It can be a somewhat daunting experience to spend that amount of cash in a short time frame, but with a little planning, it's quite simple to accomplish.
Select analyzes the different ways you can earn a valuable credit card bonus, without overspending or stretching yourself too thin.
How to earn a credit card welcome bonus without overspending
When signing up for a new credit card, the welcome bonus is typically the most valuable benefit of the card in the first year — so it's important to meet the threshold within the allotted time period.
However, it's equally important to not make purchases you wouldn't normally make to simply meet the bonus offer. This is the equivalent of spending a dollar to earn a few pennies.
So, before you get that next credit card, it's key to try and time your sign up when you have a lot of upcoming expenses. But if you're still having difficulties meeting the minimum spending requirements, here are a few ideas of how you can earn that next bonus, responsibly:
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Use it on all purchases
On a daily basis, you may make one or more small purchases. Whether it's a cup of coffee or filling up your gas tank, each purchase can quickly help you get closer to earning the card bonus.
Even though these purchases are small, they can quickly add up over time. So the best strategy to follow is to eliminate all other cards from your wallet while you are working towards the minimum spend threshold. Also, consider adding it to pay for your recurring subscriptions.
Contact your auto and home insurance to see if you can pay ahead
Many insurers will allow you to pay your premium ahead of time, and sometimes they'll even give you a discounted rate when you do so.
So, if you have the available funds to pay off your insurance premiums ahead of time, this can quickly help get you closer to earning your welcome bonus.
Pay your rent or mortgage
Paying your housing bill with a credit card may seem odd, but it can be done with a few simple steps.
If you're a renter, contact your landlord to see if they accept card payments. If they do accept credit cards they may levy a 2-3% surcharge. In the case of earning a welcome offer, it may be worth paying the fee.
If you own your home but have a mortgage, consider using a credit card bill-pay service like Plastiq. For a 2.85% fee the company will issue a check directly to your lender and charge your credit card.
Friends and family expenses can help
If you have trusted friends or family members with large expenses in the near future, ask them if they wouldn't mind paying with your card or an authorized user card.
For example, if you know (and trust) someone who is purchasing a new iPhone, you could pay for their phone and have them reimburse you by check, cash or a payment app like Venmo, Zelle or PayPal.
Pay your taxes
If you owe taxes, there are several ways to pay using a credit card. However, if you owe a significant amount, paying with a card is only advisable if you have the funds to pay the statement immediately, or by putting it on a 0% intro APR card.
There are a few servicers you can use to pay your taxes. The cheapest one, PayUSATax, currently charges 1.96% to process payment by credit card. You can see the three different options here.
On my 2021 taxes, for example, I owed an amount I didn't feel comfortable paying upfront. Therefore, I paid my taxes using the Capital One SavorOne Cash Rewards Credit Card. I paid the 1.96% fee, but with the welcome offer of a one-time $200 cash bonus after spending $500 in the first three months from account opening, I still came out ahead. (See rates and fees).
School tuition and/or daycare services
Tuition and daycare services continue to rise in price, with no signs of slowing down. But before you pay your next invoice, check to see if your school or daycare provider accepts credit cards.
If they do, this could easily put you over the spending threshold on many credit cards.
If they don't, you can consider using a credit card bill pay service like Plastiq, but the 2.85% fee may be difficult to stomach with a large purchase like this.
Down payment on a car
If you're in the market to purchase a vehicle and plan to do so from a car dealership, you can talk with the financing department to see if you can make the down payment using a credit card.
Some car dealerships are hesitant to accept credit card payments because of chargebacks and absorbing processing fees, but you may be able to negotiate a card payment into the deal.
FSA/HSA reimbursements
If you use either a Flexible Spending Account (FSA) or Health Savings Account (HSA) to fund your healthcare related purchases, they may issue you a debit card to spend with.
While the debit card is convenient, you can easily use your personal credit card for those expenses. Then submit your healthcare receipts for reimbursement and pay off your credit card with the money from your reimbursement check.
Charitable donations
If you want a simple tax deduction and have a verifiable nonprofit you choose to donate to, you can use your credit card to make a donation.
Some nonprofit organizations prefer to not receive donations via credit card as they have to incur a fee, so you may want to consider using a bill pay service.
Best welcome offers available
If you're looking for a new card and want to find one of the more valuable welcome offers available, here are our recommendations:
Chase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Read our Chase Sapphire Preferred® Card review.
Chase Freedom Unlimited®
Rewards
Enjoy 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 1.5% cash back on all other purchases.
Welcome bonus
Special Offer: Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
20.49% - 29.24% variable
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Credit needed
Excellent/Good
Member FDIC. Terms apply.
Read our Chase Freedom Unlimited® review.
The Platinum Card® from American Express
Rewards
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases
Welcome bonus
Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
Annual fee
$695
Intro APR
None
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit Needed
Excellent/Good
See rates and fees, terms apply.
Ink Business Cash® Credit Card
Rewards
Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year (then 1%); 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year (then 1%); 1% cash back on all other purchases
Welcome bonus
Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
Annual fee
$0
Intro APR
0% for the first 12 months from account opening on purchases; N/A for balance transfers
Regular APR
18.49% - 24.49% variable
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
3%
Credit needed
Good/Excellent
Terms apply.
Ink Business Unlimited® Credit Card
Rewards
Earn 1.5% cash back on every purchase made for your business
Welcome bonus
Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
Annual fee
$0
Intro APR
0% for the first 12 months from account opening on purchases; N/A for balance transfers
Regular APR
18.49% - 24.49% variable
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
3%
Credit needed
Good/Excellent
Terms apply.
Bottom line
A sign-up bonus from a credit card is a great way to get a non-taxable rebate on your spending. However, it can sometimes be overwhelming to try and hit the welcome bonus spending threshold. But with some planning, and maybe a bit of help from friends and family, you can quickly earn your bonus without accruing credit card debt.
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For the rates and fees of the Platinum Card from American Express, click here
