4 Simple Ways to Earn Your New Credit Card’s Welcome Bonus Without Overspending

1️. Charge Regular, Everyday Purchases

  • Use your card for groceries, gas, dining out, and everyday bills.
  • Review your bank statements to get a general idea of how much you already spend on these categories.

2️. Use Your Card for Planned Large Purchases

  • Plan new credit card applications around upcoming expenses like vacations, tuition fees, holiday shopping, or big-ticket items.
  • Examples: New kitchen appliances, back-to-school supplies, or even furniture.

Pro Tip: Ensure you can pay off these large purchases to avoid high-interest charges.

3️. Add an Authorized User

  • Adding a spouse, partner, or even a teenager can help speed up reaching your spending goal.
  • Their purchases will count toward the minimum spending, so make sure they know the spending limits!

4️. Look for Unusual Expenses to Charge

  • Some bills you may not have thought of, like insurance premiums, gym memberships, utility bills, or even taxes, can be paid with a credit card.
  • Watch out for potential extra fees when paying certain bills (e.g., taxes or utilities), but these fees might be worth it if they help you earn a big welcome bonus.

Avoid These Pitfalls:

  • Overspending: Don’t buy things you don’t need just to earn rewards. This can leave you worse off in the long run.
  • Carrying a Balance: Plan to pay off your card balance in full to avoid interest charges, especially with current credit card APRs being over 20%.

How to Redeem Your Welcome Bonus

  • Flexible rewards cards, such as American Express Membership Rewards and Chase Ultimate Rewards, offer options for travel, gift cards, statement credits, and more.
  • Cash-back credit cards may offer fewer options but still provide great value, typically through cash back or statement credits.

Can You Earn the Same Bonus More Than Once?

  • Yes, but it depends on the issuer! American Express has a “once per lifetime” rule, though you may become eligible again after around seven years.
  • Chase Sapphire cards have a 48-month rule between bonuses for any Sapphire card.