A fantastic way to build your miles and points balance is to open a new credit card. Look for one that comes with a large sign-up bonus. American Express has offered sign-up bonuses of up to 300,000 points. The catch is that most of these huge welcome bonuses come with large minimum spend requirements. Some can be as high as $30,000. You have anywhere from three to six months to make the required spend to get the bonus. Sound like a daunting task? With some creative moves, it’s not only possible but also easily doable. Read on to learn some creative ways of spending on your credit card to earn a large sign-up bonus. Here are some spending tips to get big credit card sign-up bonuses:

As a general rule of thumb, you need to use that card as much as possible to meet the required spend. This assumes you can pay off the bill each month to avoid interest charges.  Here are some things that can be charged on a credit card that you may not have considered:

Utilities

Many gas, electric, water, cable TV, and cell phone companies accept credit cards for payments.   Some may incur a small fee for credit card payments.  Consider the value of the points you want to accrue. It may be worth paying the nominal fee.

Insurance

Many insurers accept credit card payments for premiums.  Some examples include home, umbrella, auto, dental, vision, business, and other policies.  If you are on a payment plan and have the cash to pay the bill, you can prepay premiums. You can do this by charging them to your credit card. 

Medical Expenses

If you have out-of-network doctor costs, pay the provider, then get reimbursed from your insurance company.  If you have hit your out-of-pocket maximum for the year, these points are free. Your full bill could be reimbursed by the insurance company.   For example, you pay your dentist $300 for a cleaning and submit the claim to insurance.

The insurance company sends you a $300 check. So you earned points and spent toward your sign-up bonus at no cost. This is a good strategy for medical doctors, dentists, and eye doctors.

Prepaid Gift Cards

Gift cards come in many types. These include AMEX, VISA, Mastercard, restaurant, and store gift cards. Sometimes you can purchase them without additional fees. This is a solid method to hit your required bonus spend. Buying gift cards allows you to pre-pay for future purchases. You can earn the points and spend toward the sign-up bonus now.

Bill Pay Services

Use a bill pay service like Melio to pay vendors who do not accept credit cards. You pay Melio on your credit card, and they send a check to the vendor. Melio charges a 2.9% fee.

See the discussion below on whether it is worth paying a fee. To try Melio, sign up here.

Membership Fees and Dues

Many clubs and organizations accept credit cards for payments.

College

Many colleges accept credit cards for tuition and room and board payments. Some don’t even charge credit card fees. This is a no-brainer. Even if there is a fee, the benefit may outweigh the cost.

Using the credits that come with many cards

Several credit cards now provide credits for various items. For example, the AMEX Business Platinum Card provides a $150 annual credit for purchases at Dell. Even if you don’t need anything, spend $150 at Dell. This spending helps you progress toward your bonus spending requirement. You will also get at least 150 Membership Rewards. If you don’t want the item, sell it on Ebay! Some cards have several thousand dollars worth of credits.

Splitting the check at restaurants

If you go out to dinner with a group, offer to pick up the check on your credit card. Then, have everyone Venmo you their share of the bill.

Casino Cash on Cruise Ships

This is one of my favorites.  Some cruise lines let you charge gambling money to your room for no fee if you have a certain cruise, casino, or cabin status. You don’t need to gamble the chips (unless you want to!).  Cash them in at the cashier.  You can also load credits onto slot machines, which you can cash out. If you repeat this process several times during a 7-day cruise, you will end up with several thousand dollars in cash.  Make sure to keep the cash safe, deposit it, and use it to pay your credit card bill.

Charities

Many charities accept credit cards.  If you have the choice, charge your donation to your credit card instead of sending a check.

Home Services

Many home services, including landscapers, garbage pickup, plumbers, painters, and roofers, accept credit cards.   If they don’t outright say they do, make sure to ask before writing a check.

Taxes

Many taxes can be paid via credit card, including quarterly estimated taxes.  Federal taxes can be paid through one of the IRS-approved credit card processors, subject to fees.   Fees range from 1.75% to 2.89%. Many states will allow you to pay taxes on their websites (fees may apply). 

Some municipalities accept credit cards to pay property taxes.  Fees may apply. If your Property taxes are escrowed, you can ask your lender to remove the escrow. This would allow you to pay the property taxes directly.  If the town does not accept credit cards, Melio is an option.  

Pet expenses

If you own a pet, you know that unexpected expenses come up. Many of them can be paid via credit card. If you happen to have pet insurance, you will get reimbursed, so those are always good credit card spends. Other pet-related expenses include food, insurance premiums, dog walkers, and boarding.

Auto leases

I had an auto lease that had monthly payments.  Nowhere on the website did it mention I could pay by credit card.  I called customer service. They informed me I could pay monthly by credit card. However, I would have to call in the credit card number each month.   This was worth the small hassle to get the points.

Ticket purchases

This is another example of where you can pay for others and get reimbursed.  Let’s say you would like to see a concert with friends.  Offer to get the tickets and have everyone Venmo you for their ticket.

Credit Card Fees and Tax Deductibility

Sometimes, it is worth paying a transaction fee to pay by credit card.  If the fee is less than the value of the points earned, it is worth paying the fee.

Example:

A merchant charges a 3 percent fee.  On a $1,000 purchase, that comes to $30.   If your bonus offer requires a $15,000 spend, you will receive 150,000 bonus points. You are essentially earning 11 points per dollar spent. This includes 1 point per dollar on spend, plus 10 points per dollar spent from the sign-up bonus.  Assuming American Express Membership Rewards are worth 2 cents each, on that $1,000 purchase, you will earn 11,000 points. These points are worth $220.   This $220 in value is worth more than the $30 credit card transaction fee, so it’s clearly worth it.  

 

Sometimes, merchants charge a flat fee.  The car lease I mentioned earlier charged $1.95 per payment.  Again, the value of the points earned outweighed the fee. This is the same way to evaluate whether it is worth paying the 2.9% fee to pay bills with Melio.  If you have a large sign-up bonus, it is usually worth paying the fee.

If you are paying credit card fees for business expenses, those fees may be tax-deductible. The deduction applies to transaction fees you charge on your credit card. Consult with your accountant.

Summary

By consistently charging everyday expenses to a credit card, you can easily meet a hefty spending requirement. This will allow you to earn your credit card sign-up bonus. In turn, this will earn you free travel.

Be vigilant about putting as much of your spending as possible on your credit card. Use these spending tips to get big credit card sign-up bonuses.

Once you have all of these miles and points, you’ll be ready to turn them into free travel. Contact me to help you spend them efficiently for a fantastic trip. I provide an award booking service to help you get the most value out of your miles and points.

Additionally, I am a certified travel agent and can book your trips on a combination of monetary payment and points. Let me help you get where you want for less!