Credit Cards

3 Ways To Qualify For Credit Card Sign Up Bonuses

Almost every credit card companies out there offer sign-up bonuses such as miles, points, or cashbacks. While some only require a small purchase amount to qualify (which in turn you will not get much in bonus returns), some higher level credit cards will give you bonuses that may worth $1000 or more.

For average Americans, qualifying for the lower level credit card sign up bonus is easy. Most of these credit cards require you to spend $500 or $1000 within 90 days of account opening. However, these cards will probably not worth opening. Most of the bonuses for the credit cards at this level is probably worth ranging from $100 – $300 only. If you ask me, I would not bother applying for a credit card with that kind of bonus. The hassle of keeping track of it is most likely not worth it.

Some of the high-end credit cards issued by major banks give you sign-up bonuses that is worth applying. In fact, some of the benefits on these credit cards alone are so useful that the high annual fee is practically pays by itself. The only problem with these cards is the high spending requirement to qualify for the bonus. Some of these cards require $3000 – $5000 spending in 90 days to qualify. A $1000 average spending on credit card is not for everyone. In this blog, I wanted to give a few tips to help you qualify for these high requirements cards.

Consolidate Your Expenses Into One Credit Card

This is easy to do. You are basically charging all of your expenses such as restaurants, groceries, gas, cell phones, utilities, and everything else to the new credit card that you just sign up for. This adds up very quickly. By consolidating alone, you will most likely meet the $800-$1000 spending level in one month.

Try to tally up your expenses and see what the total is. Do this BEFORE you apply for the credit card.

Look For Major Bills That Can Be Paid In Full Instead Of Monthly

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One great example on this is your insurance premium. As I have talked about in another posting, I pay my insurances at full amount to take advantage of the discount. Besides that, if I pay it with the new credit card, the charges can contribute a lot to the spending requirements for the bonus.

So, go ahead, stash your monthly insurance payment to your own account or a second dedicated account for these things. Pay your insurance in full using the new credit card. Pay back the credit card with your accumulated money in that dedicated account when it is due.

Time Your Credit Card Account Opening

If you know that you will not have enough expenses that you can pay within 90 days period, don’t apply at all. It will be a wasted effort and you will end up with one extra credit card that you will have to close.

Timing is crucial. Blindly applying for a new credit card without paying attention to the timing can make you lose out in the bonus time frame.

Lastly, I want to say that these bonuses are worth to get. I personally have benefited a lot from it to pay for my family vacations. However, keep in mind that you need to pay of the credit card right at the due date. If you are unable to pay it off and start getting interest charges, these bonuses will essentially worthless.

Checkout websites like CreditCards.com and The Points Guy that gives you more details on the credit card benefits.

Hope this blog post is beneficial to you. Remember, credit cards are not evil as long as you use it responsibly. Have a great day!

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