Use your credit card for all your purchases to ensure you hit your minimum credit card spending requirement of 4000 dollars in 3 months. No matter how small the purchases, avoid paying with cash, bank transfer, or check. Use your card to overpay or prepay your utilities, buy gift cards for later shopping, pay mortgage or rent, or give to charity.
If you are looking forward to accumulating good credit card points or getting flyer miles on your credit card, the first thing is to hit your minimum spending requirement once you sign up. Meeting the requirement means getting bonuses that you can redeem for anything you want. The trick is always to open a card when you have a plan to use it in the first few months.
As a rule of thumb, never spend more than you would without a credit card. So, if you want to be within your budget but still hit your minimum spending, here are the top tricks to help you.
Jump To A Section
- 1 10 Ways To Spend 4000 Dollars In 3 Months
- 1.1 1. Use Your Credit Card For All Purchases
- 1.2 2. Buy Gift Cards For Later Shopping
- 1.3 3. Overpay Or Prepay Your Utilities
- 1.4 4. Pay For Some Expenses With Your Friends And Have Them Refund You
- 1.5 5. Pay Your Mortgage Or Rent
- 1.6 6. Make Your Charity Donation
- 1.7 7. Add Authorized Cardholders
- 1.8 8. Book Your Upcoming Holiday And Pay With A Credit Card
- 1.9 9. Buy And Resell Merchandise
- 1.10 10. Pay For Business Expenses
- 2 Does Venmo Count In The Minimum Credit Card Spending?
- 3 Are There Concerns About Using Venmo To Meet Minimum Credit Card Spending?
- 4 What Items Do Not Count Towards The Credit Card Minimum Spending Requirement?
- 5 Can You Buy Amazon Gift Cards To Meet The Minimum Spend Limit?
- 6 Do Credit Cards Have A Minimum Spending Limit?
- 7 Final Words
10 Ways To Spend 4000 Dollars In 3 Months
1. Use Your Credit Card For All Purchases
Use your credit card to pay for your purchases instead of cash, bank transfer, or check. As a result, you stay within your budget while trying to meet your minimum credit card spending requirement for bonuses. Even for small spending like buying a cup of coffee, use your card as long as it doesn’t attract an extra fee.
Note that some transfers attract surcharge fees, for instance, Venmo and PayPal, that you might want to avoid. But, if it means spending a few bucks for good bonus points, then it might be worth it. Do the calculation and decide wisely!
2. Buy Gift Cards For Later Shopping
Buying a gift card helps you hit the minimum spending limit without necessarily purchasing what you don’t need. For example, if you have an upcoming project on home improvement, buy a Lowes gift card. You can use the card to buy a new home appliance when you need it. Remember to check the terms and conditions to confirm whether your card issuer counts the ‘cash equivalent’ when considering minimum spending.
3. Overpay Or Prepay Your Utilities
Many utility companies accept overpayment of your current bill. There will be no refund, but the excess money will be carried forward to your next statement. So, if three months deadline is fast approaching, float your money on your utilities. After all, you must pay your bills in the future, meaning there is no overspending; rather, you are ‘killing two birds using one stone.’
4. Pay For Some Expenses With Your Friends And Have Them Refund You
When shopping or dining with friends, use your credit card to pay for the expenses and have them refund you. As a result, you exchange the credit card for cash to meet the minimum spending requirement for your bonus. Ensure your friends are okay with the plan to avoid getting into unnecessary expenses.
5. Pay Your Mortgage Or Rent
Apart from your monthly utilities, you can pay your mortgage or rent using your credit card. Use services like RadPad and Plastiq that accept such arrangements. They will process your payment and mail a check to recipients, i.e., bank, Management Company, or landlord.
Note that such services attract a service charge fee of 2-3 percent. For instance, if your rent is $1,500 and you use your credit card to make payment, you will pay a service fee of $30. That could be a small price to pay if your sign-up bonus is good enough.
6. Make Your Charity Donation
If you usually donate to charity at the end of the year or during a holiday, consider doing it earlier as a way to meet your minimum credit requirements.
Consider adding your children or partner as authorized credit card users if you regularly give them money. Their spending will help you hit your minimum spending target, plus you can earn some cashback, miles, or points.
If you do not have dependents, talk to friends and add them as authorized card users. They can use your card and later refund you in cash. Choose those you trust, as it will be your sole responsibility to settle your credit card dues.
Your card provider will guide you on how to add authorized users. This may attract some fees, so ensure the cost is worth the benefit of hitting your target.
8. Book Your Upcoming Holiday And Pay With A Credit Card
If there is an upcoming mini-break or holiday on your to-do list, book it and pay through your credit card. Early booking will also save you some bucks as you might land on some great air travel and accommodation deals. Plus, for travel spending, some card issues will give you fly miles or bonus points.
9. Buy And Resell Merchandise
Buy discounted merchandise using your credit card and resell it to your family and friends. You can even sell through online shops to get other customers. Consider buying items from shopping portals such as epoints.com, Quidco, or Nectar shops to earn some points plus great discounts.
10. Pay For Business Expenses
If you work in a company where you take visitors for dinner or make purchases for your department, request your employer to use your credit card for payment. The company will then reimburse you later directly or through your wages. Just note that reimbursement through wages can attract additional taxes, so you have to weigh options before using this trick.
Does Venmo Count In The Minimum Credit Card Spending?
Yes, any spending you do through Venmo count in your minimum credit card spending. First, you need to link up your credit card to your Venmo account to use it for purchases. Note that any credit card spending through venom will attract a fee of about 3 percent. Meaning, if you transfer 4,000 dollars, you will incur a fee of $120. So, first, weigh if benefits outweigh the cost before using the trick to meet your minimum credit card spending.
Are There Concerns About Using Venmo To Meet Minimum Credit Card Spending?
There are two major concerns when using Venmo to hit your credit card target. First, Venmo has been in the limelight for security lapses that can result in the hacking of bank accounts. Since then, the company has beefed up security resulting in zero cyber breach cases. However, when using a digital payment app for any reason, you should be mindful of security lapses.
The second concern is the freezing of Venmo accounts. The company is known to freeze users’ accounts on suspicion of any illegal or prohibited activities. So, always ensure your transfers are viewed as legitimate by giving valid payment descriptions such as debt payments.
What Items Do Not Count Towards The Credit Card Minimum Spending Requirement?
Some charges can be made on a credit card but don’t count on the minimum spending requirement. These are:
1. Travel checks
2. Cash advances
3. Balance transfer
4. Annual fees
5. Lottery tickets
6. Wire transfer and similar transactions
7. Money orders
8. Foreign currency
10. Race track wages, casino gaming chips, and similar betting transactions
11. Fraudulent or unauthorized transactions
The listed are ones that many card issuers do not accept. It is also best to confirm from your issuer of any other spending that doesn’t count. For instance, some issuers do not count the gift card purchase in the minimum credit card spending requirement.
Can You Buy Amazon Gift Cards To Meet The Minimum Spend Limit?
Yes, buying an Amazon gift card is a great way to meet minimum credit card spending requirements. Better yet, Amazon sells almost everything, so you can use your card to purchase what you need at a later date. Plus, their gift cards never expire, and they do not have any fees attached to them. The choice is yours; you can buy the card to gift a friend or use it for purchases.
Do Credit Cards Have A Minimum Spending Limit?
Yes, credit cards have a minimum credit card limit to encourage new clients to use their cards for purchases. Once you hit the target within the stipulated period, you will have qualified for sign-up bonuses. The trick is to ensure you spend on items that count towards the limit. Keep in mind that you will be the one to repay the amount spent even during the sign-up bonus period.
The sign-up incentive by credit card companies can be so tempting to make you spend beyond your budget. Keep in mind that you will have to repay all the dues on your card or risk ruining your credit scores. If your credit card minimum spending limit is 4,000 dollars in 3 months, use the tricks we have mentioned above. That way, you use your credit card wisely while meeting the minimum spending target for your sign-up bonuses.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.