The Ultimate Guide to Credit Card Sign-Up Bonuses

The credit card sign-up bonus is one of the fastest ways to earn points and miles. With strategic planning, anyone can comfortably meet the minimum spending thresholds of credit cards. Remember never to spend more than you can afford or accumulate unnecessary debt to reach a minimum spend threshold.

A sign-up bonus is a reward offered by a credit card company to encourage new customers to apply for a card. This bonus comes in the form of points, miles, or cash back, and is awarded after you meet a credit card minimum spend.

For example, a card may offer a bonus of 50,000 points if the holder spends $3,000 within the first three months. If you were to spend $3,000 on groceries would be 12,000 points. But if that $3,000 were put towards a sign-up bonus on the same Amex Gold card, you would earn 62,000 points.

Every sign-up bonus has three main rules including:

Minimum Spend: The amount required to qualify for the bonus.
Time Frame: The period allotted to meet the spending requirement, usually between three to six months.
Eligible Purchases: Certain purchases may not count toward the total, such as balance transfers and annual fees.

If you do not meet any one of these conditions, you will miss out on the sign-up bonus. It’s essential to understand these rules and keep track of the details for each credit card.

Planning Your Spending

Before you sign up for a credit card you should have a pretty good idea that you can hit the sign-up bonus. Never ever spend just so you can meet a sign-up bonus.

Creating a Budget

Establishing a budget is important not only for managing your finances but also to provide information you need when determining if you can meet a credit card minimum spend. A well-structured budget helps track fixed and variable expenses. This could include rent, groceries, utilities, and discretionary spending. I use the Empower website for my budget but you do what works for you.

Make sure know all of your expenses that can be put on a credit card. By identifying where spending can occur, it becomes easier to meet those credit card requirements without overspending.

Large Purchases Can Earn A Welcome Bonus

There are some large expenses in life that we can’t avoid no matter how much we would like to. If you are strategic and plan to apply for a credit card when you know these expenses are due you can dedicate that amount to achieving the sign-up bonus.

Example Expenses:

Income Tax
Car Insurance
Property Tax

Other Not So Fun Larger Expenses

Don’t forget the really sucky bills like car repairs and medical bills, earning points will make paying those types of bills slightly less awful.

Pro Tip: When you have a pop-up bill that would be great for minimum spend, you can call the bank after you’ve been approved for a new card and ask them to rush delivery.

Fun Larger Expenses

Don’t forget to be strategic with the fun larger expenses too. These expenses include items such as electronics, furniture, and appliances. Always be thinking that the goal is to maximize points earning of every dollar.

I was not aware of points and miles when my kids were in daycare but that would have been a gold mine! Another option could be paying for tuition bills. I can’t wait for all those points I will earn when my kids are in college, lucky me (sarcasm).

Bill Payments

Many utility companies do not charge a fee for paying with a credit card. I want my husband to feel involved in earning points and miles. I have given him the responsibility of changing the credit card used to pay for our utilities. Every few months, when we’re working on a new sign-up bonus, he logs into the websites for our electric, gas, water, phone, and internet services to update the payment method. He really loves flying in business class, so he appreciates the important role he plays in managing the utility payments.

Although it might be annoying to update the payment method every few months it’s worth it when you are sitting on the beach.

It’s important to consider any transaction fees related to these services, as they can affect the overall benefits of earning rewards. Nevertheless, this method ensures that necessary bill payments also contribute to achieving the sign-up bonus goal.

Groceries and Household Items

I have 2 growing boys and grocery shopping accounts for a significant portion of our monthly spending. Utilizing a credit card to purchase groceries always makes a dent in meeting the spending target needed for whichever card sign-up bonus I am currently working towards. If I am not working on a minimum spend then I am using my Amex Gold card.

A child wearing orange sunglasses and a Dude t-shirt stands confidently next to a shopping cart in a store, holding onto the handle. A person hands over a plastic bag to a cashier at the checkout counter.

Prepaying Recurring Expenses

Prepaying regular expenses is an advanced strategy that should be used sparingly. If you choose to prepay recurring expenses, make sure to account for the reduction in monthly spending going forward. It would be awful to prepay to meet a spending requirement and then miss the next sign-up bonus because you weren’t organized or didn’t track your regular monthly expenses properly.

Insurance Premiums

If you choose to prepay, one common option is for insurance premiums. Many insurance companies allow policyholders to pay their premiums in advance. For example, annual car insurance premiums can be paid upfront instead of in monthly installments often helping to meet those larger spending requirement that come with a larger sign-up bonus.

Subscription Services

Subscription services provide another avenue for prepayment. Consider various types of subscriptions, such as streaming services, software subscriptions, children’s karate lessons, and gym memberships.

Making Purchases for Friends and Family

Thank goodness for Venmo! I love simplifying the end of a group dinner by paying with my credit card and then having my friends Venmo me their share. (This only works with friends who haven’t yet discovered the advantages of points and miles.) Using your credit card for group purchases can be a great way to help meet a minimum spending requirement. Here are a few other ideas for how to use this clever method.

Group Gifts

You can volunteer to collect contributions and purchase a gift for a coworker or friend. Before I began collecting points and miles, I preferred to make a contribution and let someone else handle the gift-giving. Now, I view every dollar as a step closer to sitting on a beach in Hawaii.

Shared Expenses

If you have roommates use your credit card to cover recurring expenses such as utility bills or rent payments. Make sure they are a trustworthy roommate that will repay you!

Group Trips or Activities

I generally do not enjoy paying for travel expenses. Sometimes it’s unavoidable, especially when going on a trip with a group of friends or family. In those cases, you could book the hotel or Airbnb and then have the others reimburse you via Venmo. Similarly, if you’re going to a concert, play, or any event with friends, you can volunteer to buy the tickets. Fortunately, Venmo makes it easy to settle up!

Gift Cards and Retail Offers

Another idea for meeting the minimum spending requirement is purchasing gift cards. Similar to prepaying expenses, if you know you will spend at a specific retailer and you need to hit a minimum spend you could purchase a gift card to have for when the future spending needs to happen. I always need gift cards for teacher gifts, birthday gifts, etc.

Visa, MasterCard, or American Express Gift Cards

A helpful option to consider is prepaid gift cards from Visa, MasterCard, or American Express. These cards work like regular credit cards but can be loaded with a specific amount, which can help you stick to your budget. However, be aware that some credit cards may have terms that prohibit the purchase of gift cards when working towards a sign-up bonus, so it’s essential to do your research beforehand.

Visa, MasterCard, or Amex gift cards often come with a fee of around $5 but most office supply stores run regular promotions where you can buy this type of gift card without any fees.

Pro tip: When I have these gift cards, I attach a post-it note to each one to track the value left on the card. Way faster and easier than logging into the gift card website and typing in the 16-digit number every time I need to know a balance.

For points and miles fans, achieving the minimum spending requirement and earning that welcome bonus is an exciting achievement. The sign-up bonus helps them achieve travel goals much faster.

If you’ve made it this far, you likely noticed a recurring theme: organization, planning, and strategic spending are crucial for maximizing points and miles earnings.

If you are unsure about frequently signing up for a new card, don’t worry. Plenty of people in the points and miles hobby have only one or two cards in their wallets. There is no wrong way to do this hobby; there are varying levels of participation, and all levels earn points and miles for free travel

Thanks for reading, friends! Happy Travels!

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