f you’ve used a credit card within the past century, you’d know many rewards come with using one. For any given card you’ll be given a primary benefit like Cash Back or Travel Miles for every single purchase you make. This is why many people choose to get a credit card in the first place, the other is a massive bonus that can enable you to travel for free!
There is another significant benefit of owning a credit card, and that is the initial credit card bonus, which in many cases can give you lump-sum rewards of anywhere from $100-$2000 in rewards (miles or money back). It’s like getting free money for spending!
These large Credit Card Bonuses, in general, require you to spend a specific amount during a particular amount of time. For the higher spending bonuses ($4,000+) they seem somewhat unattainable, but some hacks will help you get these bonuses rather quickly!
Here’s how to reach these bonuses quickly!
1: Use Credit Card to Pay Bills
Credit cards offer some of the best reward options out there. Get Cash Back for spending money on stuff you bought, earn trips through miles/points, and receive other benefits like car rental insurance. Paying bills with a credit card is sometimes not a good idea if:
- You have more debt than savings
- Are charged for using a credit card
- Have credit cards without any reward or bonus
We’ve partnered up with a company called Plastiq. They enable you to pay taxes, rent, and other bills typically used with a checking account. They do however charge up to 2.5% (smaller fee if it’s a debit card) in fees.
On the other hand, paying more substantial costs like Rent and Taxes could earn you a credit card bonus almost instantaneously! For example, one credit card would give you 25000 travel points if you spend $3,000 in 3 months.
By paying your taxes or rent, you could quickly get the bonus just by using the Plastiq app on Rent or Taxes!
When Using Credit Cards for Bills is a GOOD Idea
Using a credit card(s) for bills makes sense for a lot of reasons. Here are the main ones:
- You are close to a massive credit card bonus
- Are not charged for using a credit card to pay
- Pay off credit card debt monthly
- Have a credit card with great rewards
When Using Credit Card for Bills is a BAD Idea
While you can reap tons of rewards for using a Credit Card for Bills since it dramatically speeds up rewards and bonus opportunities, it should be of note that not all card holders should pursue using Credit Cards for every purchase including bills. Here are some reasons to stay away from using Credit Cards for Bills:
- You Can’t Pay Off Bills Daily (Weekly, or Monthly)
- You Make Lots of Impulse Purchases
The key when using Credit Cards is Control because you’ll need to think of your Credit Card as a Debit Card that is linked directly to your banking account!
2: Pay for Daycare Using the Credit Card
If you have kids and you have to go to work, you probably place your kids in daycare. For those unaware, daycare is a massive expense. Sometimes bills reach up to $2000 a month…per child! If you were going to write up a check for these types of costs, you are mostly losing out on free rewards and money by not using a card here.
3: Pay Water, Electric, and Cable
Seems pretty obvious, and as we will keep mentioning that you should treat a Credit Card as if it were a debit card, paying for utilities makes the most sense when you try to reach Credit Card spending plateaus (for bonuses).
Because these are recurring (or every month) expenses, you’ll probably have to pay for them anyway, so why not earn points, plus get closer to those bonuses!
Feeling Green? You can sync up your Electric Bill with an app like Arcadia Power and convert your home into 50% Wind Energy with little effort. It’s FREE, plus it’s easy to pay with a Credit Card!
Want to pay less for Cable and internet? We partnered up with the app TRIM. They’ll cut your cable bill without sacrificing your current entertainment and internet speed! It works!
4: Treat Credit Card as if it were a Debit Card
It’s easy to get lost in the debt that credit cards come with. Every time a credit card has been swiped or inserted into a card reader, you are essentially letting another company bill you at a later point.
It’s not your money you are spending, rather debt you are accumulating. Credit Cards are certainly tools to help you gain rewards, increase credit, or perhaps purchase things that are essential to your life, including medical bills.
However, if you don’t pay off your card daily, weekly, or monthly you may tend to let a balance keep growing until it’s totally out of reach for you or your family. It’s a scary situation to be in, and one that will change your financial dependence.
5: If You Haven’t Reached It Yet, Don’t
The final tip here is that if you can’t reach the bonus doing what you have been doing for several months or years, then don’t overspend to get the bonus. It’s not worth changing your lifestyle or spending habits to reach a bonus.
Sure you can buy that expensive Apple product and reach it instantly, but then you’ll have a hard time paying it off. Just don’t!
You could look into lower range bonuses like $100 through $150 that will typically reward you for reaching a spending limit of $500-$100.
The Wells Fargo Cash Wise card is an example of an offer, where you’ll need to spend a meager $500 in order to get the $150!
Most people who have built a solid credit rating should consider Sign Up bonuses as a way to carve out more freedom and opportunity in their lives.
On the other hand, for those who cannot spend or pay off credit cards as quickly as possible though, should not pursue credit card bonuses.