Meeting your minimum spend isn’t rocket science. You recently got approved for a new credit card. Now you’re thinking of how you’re going to meeting your minimum spend for the card. Whether the spending requirement is $2,000 or $4,000, I have some tips on how you can meet your minimum spend. Let’s get into it.
The minimum spend is the minimum amount of money you have to spend in to receive a sign-up bonus. The length of the sign-up bonus requirement is usually for the first 3 of your new credit card account. The American Express Gold Card currently has a minimum spend of $4,000 in the first 3 months for 35,000 points. The Chase Sapphire Reserve has a minimum spend of $4,000 in the first 3 months for 50,000 points. The Capital One Venture Rewards card has a minimum spend of $3,000 in the first 3 months for 50,000 points. There are other credit cards out there that offer a lower minimum spend than the cards mentioned.
New credit card holders benefited during COVID 19
During the height of the COVID 19 outbreak, credit card companies such as American Express expanded their 3 month minimum spend term to 6 months. That was actually a great time to sign up for a credit card with Amex and other credit card companies. That meant your minimum spent would have to be met in a 6 month term instead of 3. They basically provided you with 3 extra months to meet your minimum spending requirement.
Tips on how to meet the Minimum Spending requirement
Unfortunately, majority of those deals and terms have now expired. Here are some tips on how to meet the minimum spend on terms of 3 months:
- Divide your minimum spend amount by 3. That will give you the amount you should be spending on your card the first 3 months. Example: If your minimum spend is $4,000, you need to be spending at least $1,333.33 per billing cycle.
- Yes, you can meet your minimum spend from purchases made during your first month, but if you do please make sure you have the funds to pay off your balance for that month.
- For the first 3 months, pay all of your bills with your credit card. That includes your expenses such as: Gas, food, groceries, utilities, insurance, etc.,
- Use your card for extracurricular expenses during the first 3 months. That goes for flights for upcoming trips and hotels. Put those expenses on the credit card.
- See if any close friends or relatives would like to get in on the fun. If they have purchases they need to make, make the purchase for them with your card. Make sure they pay you exact amount upfront in cash before you do it. It definitely can help you get closer to your minimum spend requirement if paying all of your monthly expenses doesn’t.
Now, I’m not a fan of using credit cards in the form of piling up debt. I’m not a fan of debt at all. I view debt as a burden. It may seem like a contradiction based on me being an author of a credit book. However, even in the book there are strategies for managing and chopping down debt.
Say no to carrying over credit card balances
I don’t believe in carrying balances over to the next month with credit cards. If you can’t afford to pay off your monthly balance, please only use the new credit card to pay for your monthly expenses and bills. That means you likely already have the money saved to pay off the monthly credit card balance.
Meeting your minimum spending requirement is attainable
If you’re an adult with responsibilities such as a bills, utilities, food, and gas; meeting a 3 month term for minimum spend should be attainable. You usually don’t have to make any major adjustments to your lifestyle in order to meet the minimum spend. You won’t have to go out and purchase a vehicle with your credit card or go on a shopping spree. Using the new credit card for all of your normal monthly expenses should help you meet the minimum spending requirement.
Be sure to check out my book: Strategies to Master Credit (Here)
Darnell R. McKinnon