How to Meet Minimum Spends
Goodbye to your debit card.
The first rule of accruing points is: stop using your debit card. Lock it away in a drawer. Anything you usually use your debit card for, you will now use your new credit card for.
There is a big misconception that to earn 100,000 points, you will need to spend $100,000. Not true. The way to earn 100,000 points is by earning a big sign-up bonus on a new credit card (or two cards depending on the bonus amounts). To earn the sign-up bonus on your current card, you need to always use the card you're working on. Switch all your monthly bills to it, use it for grocery shopping…pay anything and everything you were already going to pay, using this new card.
Using a credit card instead of a debit card offers an extra layer of protection against fraud
You won’t miss your debit card. Using credit cards offers many benefits (besides nearly free travel). With credit cards, you are protected against identity theft and fraud. If someone obtains your debit card information and starts using it, they are using your actual money. That's pretty scary. I'm sure banks are cooperative and will get you your money back (probably not quickly though). But when it's a credit card, you aren't risking your own cash. You just call the bank that issued the card and have them remove the fraudulent charges.
Using credit cards responsibly will also boost your credit score. As long as you: pay your bill in full and on-time every month, keep the card open for at least a year, and don’t max your card out to the limit, then you should see improvements in your score. Debit cards don’t have this benefit.
Finding someone to be your “Player 2” is a game-changer.
A key strategy to meeting minimum spending requirements and earning more points overall is by teaming up with another person. Find a “Player 2” and have them use your card too. Many people use their spouse, sibling or parent. This speeds up how quickly you meet your minimum spend. Only do this with people you can trust, since the card is in your name and at the end of the day, you are responsible for the payment. Once you have a Player 2, you can refer them to cards and get referral points. Then, they can refer you to cards and get referral points that way too (if you are combining points). If you don’t have a Player 2, offer to pay when you are out with friends and family - and then have them Venmo you their share.
Another strategy is to plan when you get your credit cards around big spending. If you have some big expenses coming up, like renovating a kitchen, tuition, taxes or appliance purchases, then get your next card beforehand. Then, use that new card when you go out and order new kitchen cabinets, pay that lingering healthcare bill or put a deposit on a summer rental property. These can be big expenses that with a little planning, you end up getting a huge benefit (travel) from paying a bill you were already going to pay.
With many credit cards, you can earn more points on certain purchases with “category bonuses.” Some cards offer more points on purchases such as: gas, groceries, restaurants, etc. But you need to stay on top of this and be sure you use the right card for the right purchase. If you do, this could payoff big with more points earned for regular, everyday purchases.
Here are some “category” bonuses with the Amex Gold card
Does it still seem tricky as to how you’ll meet that minimum spend by the deadline? If so, then you need to be certain that you are only applying for cards that have realistic minimum spending requirement for your lifestyle. An AmEx with a $10,000 minimum spend within the first 3 months may not make sense for you.
You should never be in a position where you need to make purchases just to meet a minimum spend on-time. That defeats the purpose of all of this. Instead, you should opt for a card that has a lower minimum spend or a card that gives you more time to meet the minimum spend. Stick with your normal spending, that way the travel you plan using these points truly doesn’t cost anything extra.