A lucrative welcome bonus should always be near the top of your priorities when weighing which credit card you’d like to add to your wallet. Most cards use the best welcome offers, and there are a variety of solid options out there.
You choose a beautiful card, and it comes to you in all its beauty – now what?
The welcome bonus comes with a spending requirement, usually anywhere from $2,000 to $8,000 within three to six months of card membership (and sometimes more spending over a longer period of time). These requirements generally depend on the amount of the offer and the type of card you choose. The more premium the product, the higher the need to spend.
It’s not always easy to meet that spending requirement, but it’s very important to earn a welcome offer. Your priority should be to have a strategy in place to ensure you are using your money wisely to achieve that goal.
Here are four tips to make sure you earn that welcome bonus and don’t leave valuable rewards on your new credit card on the table.
Related: Credit cards can get you $1,000 or more in first-year value
Have a plan for your spending
Whether you’re a points and miles lover with more than 15 credit cards to your name or you’ve just applied for your first rewards card, you’ll want to consider how you’ll spend money on that new card.
When it comes to getting a welcome bonus, I advise putting as many of your expenses as you can on your new card – everything from dining out to shopping and miscellaneous monthly spending. This is especially true if the need to spend money is on the high side.
If you can, consider adding your new card to a mobile wallet and keep it in your mobile wallet while you work on the bonus. I also suggest adding a recurring charge or two to your new card, like a streaming subscription or your cell phone bill.
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The last thing you want to do is miss the limit on your new card because you forgot to swipe it.
Related: Will my rewards change if I pay with a mobile wallet?
Schedule your shopping
Are you planning to move, have a big trip coming up or expect to spend extra money during the holidays? Any big purchase you plan to make can give you a lot of help when it comes to earning a welcome bonus.
Let’s say you expect to spend a lot of money in the month before you travel across the country to visit your parents for Thanksgiving, and you should start thinking about holiday gifts. This can be a powerful time to consider applying for a card with a higher welcome bonus, as you will be spending money anyway.
I would also recommend that you don’t wait until the last few weeks to spend your extra money on demand. If you can, making the extra effort to meet the requirement sooner rather than later is the safest bet.
Also, if you have an expensive purchase that can be made in bulk and split up later, such as paying the full bill for a dinner with friends and family, you can charge that to your new card and have others pay for it. . That way, you get the money to spend, but you also manage to avoid spending money beyond your means.
Related: Top credit cards for big purchases
Plan to pay your balance each payment cycle
While you may have to increase your spending to meet certain thresholds to get the lucrative welcome bonuses, I advise you to keep TPG’s high command of rewards credit cards at the forefront of your mind: You will pay your balance in full.
Earning interest because you have a balance on your new card won’t result in you getting the rewards benefits you’re earning, especially if that card has a high interest rate.
Although certain spending limits can be high, consider your spending strategy before applying for a new card. Make sure you can meet the requirement and earn your rewards without carrying a balance to make the most of your bonus miles, points or cash back.
Related: Credit card bonuses you can earn for spending $1,000 or less
Be prepared for obstacles
Even if you come up with the best plan, make big purchases and pay off your balance in full, some obstacles are inevitable. Again, mistakes happen – even to the most experienced credit card professionals.
Being prepared for hiccups along the way can help lessen the impact of obstacles you encounter while working to earn your welcome bonus.
Let’s say you are targeted for a high welcome offer, but when you receive your bonus, you find your account boosted by a few points or a smaller refund than expected.
To avoid this, I recommend that you take screenshots or record yourself filling out the donation request you receive. This way, you’ll be able to report to the issuer to see if they’ll give you the number of points, miles or cash back you’re expected to earn.
TPG credit card writer Danyal Ahmed recently experienced this tragedy in his family when his wife applied for a letter American Express® Business Gold Card. His wife received a targeted offer of receiving 200,000 bonus points after spending $10,000 in the first three months of card ownership and a 0% introductory APR for six months from account opening (on purchases that qualify for Pay Later, then 18.99% -27.99% variable APR, see rates and fees).
Despite meeting the spending requirement and receiving the welcome bonus, the 0% APR offer was not applied to the account. After going back and forth with American Express customer service and providing them with screenshots of the intended email and application page, Amex agreed to honor the terms and reinstated the introductory APR offer.
Additionally, be aware of what you spend money on while working to meet the welcome bonus. Know how much certain purchase codes are, and don’t assume that just because you’ve tapped your new card, it’s automatically calculated based on your cash requirement.
Always keep tabs on your account while you’re working on getting a welcome offer, and track your progress to make sure you don’t miss out.
Along these lines, don’t make the tax payment the only way you use it to get the welcome bonus. It may not count as eligible spending, which could cause you to miss out on your welcome bonus rewards.
Also, give yourself more room and spend more than your requirement so the bonus can account for any unexpected statement credits or refunds.
You don’t want to make the critical mistake of thinking you’ve met the spending requirement, only to find out that you’ve received back credits that put you under that limit later on.
Related: The 11 biggest mistakes people make with travel rewards credit cards
Bottom line
If you’re adding a new credit card to your wallet, you want to make sure you have a plan in mind to reach your spending limit and earn that valuable welcome bonus.
Getting that welcome bonus ensures you get the most value possible from your new card, whether you’ve taken advantage of a limited-time offer or just want to accumulate more points for your favorite currency.
When working towards your bonus, make sure you pay close attention to how you spend the money and whether it matches your goals to get the most out of your new card.
Related: Best time to apply for these popular travel credit cards based on offer history
For Amex Business Gold rates and fees, click here.
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