A lucrative welcome bonus is a huge perk when you’re adding a new credit card to your wallet, but it comes with a spending requirement. Let’s dive into four strategies to help you meet that requirement and make the most of your new card!
1. Have a Spending Plan
Whether you’re a credit card newbie or a rewards pro, you’ll need a strategy to reach that welcome bonus threshold. Here’s how:
- Use It for Everything: Add your card to your mobile wallet, cover daily expenses like groceries and dining, and consider setting up recurring payments (e.g., streaming services or phone bills) to avoid missing out.
- Keep It Accessible: Carry the card in your wallet or your go-to payment app to avoid missing small opportunities to hit that spend requirement.
2. Time Your Purchases Right
Big spending ahead? This might be the perfect time for a new card!
- Plan Ahead for Big Expenses: If you’re moving, taking a trip, or planning holiday shopping, these purchases can help you meet your card’s spending requirements naturally.
- Hit the Target Early: Don’t wait until the last minute to meet the threshold. Making the bulk of your spending upfront is safer and less stressful.
3. Aim to Pay Off the Balance Each Cycle
Racking up interest on your balance defeats the purpose of earning rewards. Here’s what to keep in mind:
- Avoid Interest Charges: Always aim to pay off your balance in full to avoid costly interest, which could negate any rewards you’ve earned.
- Know Your Limits: Make sure you’re comfortable with the spending requirements before applying. Your budget should support the card’s spending goals without risking high balances.
4. Be Ready for Setbacks & Track Spending Closely
Even the best plans can go off course. Here’s how to stay prepared:
- Document Your Offer: Take a screenshot or screen recording of your welcome bonus offer when you apply. If there’s an issue, this documentation can help you clarify with the issuer.
- Check Eligible Purchases: Some purchases, like tax payments, may not count toward the welcome bonus threshold. Check which purchases are eligible and track your spending closely.
- Go Slightly Over: To avoid missing out due to refunds or statement credits, spend a bit above the requirement.