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 Savor Cash Rewards Credit Card. I paid the 1.96% fee, but with the welcome offer of a one-time a $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening, I still came out ahead.
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:
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.
- You can transfer rewards to all of Chase's travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Long list of travel and shopping protections
- $50 annual Chase Travel hotel credit
- Has an annual fee
- Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
- Enjoy beneï¬ts such as 5x on travel purchased through Chase Travelâ„ , 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travelâ„ . For example, 60,000 points are worth $750 toward travel.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Valuable welcome bonus and high rewards rates
- Long intro APR for purchases and balance transfers
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travelâ„ , our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travelâ„ , 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.49% - 28.24%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%Â of each transaction in U.S. dollars
The Platinum Card® from American Express is a premium card loaded with annual statement credits, entertainment benefits, extensive airport lounge access, elite status perks and more. (Enrollment required for select benefits mentioned)
- Access to 1,400+ airport lounges, including Priority Passâ„¢ Select lounges (enrollment required) and Amex Centurion lounges
- Statement credit offers worth up to twice what the annual fee costs
- Elite status perks for hotels and rental cars (Enrollment required for select benefits mentioned)
- High annual fee
- Many statement credit offers are complicated and are earned in increments or limited to specific purchases
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
- 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 and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
- $240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
- With American Express Global Lounge Collection® you can enjoy access to over 1,400 airport lounges globally, including The Centurion® Lounge, Unlimited Delta Sky Club® Access when flying an eligible Delta flight, Escape Lounges, Lufthansa Lounges when flying Lufthansa Group, Plaza Premium, Priority Pass™ Select Lounges, & Additional Global Lounge Collection Partner Lounges subject to visit limitations. Lounges may have their own rules, like additional access rules and guest fees, and for Priority Pass Select, you need to enroll and there are unlimited airport lounge visits for Card Members. With Delta Sky Club Access, Card Members will receive 10 Visits to the Delta Sky Club to be used from February 1 until January 31 of the next calendar year and can unlock Unlimited Delta Sky Club Access by spending $75,000 in eligible purchases on their Card in a calendar year. To find a lounge, visit the membership section in the American Express® App or visit http://www.americanexpress.com/findalounge#/loungefinder.
- $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
- $200 Uber Cash: Platinum Card® Members can ride or dine in style with $15 in Uber Cash each month, plus a bonus $20 in December after adding their Card to their Uber account. Use your Uber Cash on rides and orders in the U.S. when you select an Amex Card for your transaction.
- $199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
- Receive either a $120 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
- Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
- Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
- $695 annual fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
Balance transfer fee
N/A
Foreign transaction fee
None
The Ink Business Cash® Credit Card is a no-annual-fee cash-back business card that's especially rewarding at office supply stores and gas stations.
- Valuable welcome bonus
- Intro APR for purchases
- No annual fee
- Bonus spending categories have annual limits
- Has a foreign transaction fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening
- 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
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
3% of each transaction in U.S. dollars
The Ink Business Unlimited® Credit Card is a flat-rate cash-back card with a strong intro-APR offer for purchases.
- Intro APR for purchases
- Valuable welcome bonus
- No annual fee
- You can't transfer rewards to travel partners without pairing it with another Chase card
- Has a foreign transaction fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase made for your business
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
- Earn rewards faster with employee cards at no additional cost. Set individual spending limits for greater control.
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- 0% introductory APR for 12 months on purchases
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
3% of each transaction in U.S. dollars
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
