Let’s talk about ways in which credit card holders can meet their minimum spending requirements for their travel credit cards.

Meeting the minimum spending requirement to unlock generous sign-up bonuses on travel credit cards can be a strategic move to maximize rewards and enhance your travel experiences.

In Canada, where such credit card bonuses can be especially lucrative, figuring out how to spend enough money within a short period—usually three months—without unnecessarily wasting funds is key. This task can seem daunting at first, especially if you’re not planning any large purchases or if your regular monthly expenses seem insufficient.

However, with a bit of creativity and planning, it is entirely feasible to meet these thresholds in ways that are both practical and beneficial to your financial health. From leveraging your everyday spending to timing major purchases wisely, we’ll explore 10 effective strategies that can help you hit your target without altering your financial stability.

These methods not only make it easier to earn those enticing rewards but also integrate smoothly with your regular financial activities, ensuring that every dollar spent also works towards unlocking fantastic travel opportunities.

Whether you’re a seasoned points hacker or new to the world of travel rewards, these tips will guide you through the process of maximizing your credit card benefits without overextending your budget.

What is Minimum Spending?

Minimum spending requirements on credit cards, particularly those linked to rewards or travel benefits, refer to a specific amount of money that cardholders must spend using the card within a set period, usually within the first few months after account opening. This requirement is a common condition attached to sign-up bonuses or introductory offers, which can include points, miles, cash back, or other perks.

The concept behind minimum spending requirements is simple: credit card issuers offer substantial rewards as an incentive for new users, but they also seek to encourage active card usage. By setting a spending threshold, issuers aim to integrate their card into the user’s regular spending habits, hoping that the card remains a top choice for everyday transactions even after the initial bonus is earned.

For example, a new credit card might offer 50,000 bonus miles if the cardholder spends $3,000 within the first three months of account opening. This target encourages the cardholder to prioritize spending on that card over others to earn the bonus, which might cover a significant portion of a flight ticket or several nights at a hotel.

The key challenge for cardholders is to meet these spending requirements without accruing debt or purchasing unnecessary items. It necessitates strategic financial planning, such as timing the application for a new credit card with planned large expenditures, like buying electronics, booking vacations, or managing household expenses. This strategy ensures that the purchases align with the cardholder’s normal spending patterns and budgets, avoiding financial strain.

Understanding minimum spending requirements is crucial because failing to meet them means missing out on potentially valuable rewards. This aspect of credit card ownership calls for consumers to carefully assess their spending ability against the card’s requirements before applying, ensuring that the benefits are attainable and align with their financial goals and capabilities. Thus, savvy consumers view these requirements as an opportunity to maximize rewards efficiently while integrating their new credit card into their financial management strategies.

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Here at 10 Ways to Canadians Meet Your Minimum Spend

1. Buy Gift Cards 

One strategic method to meet the minimum spending requirements on a new credit card is through the purchase of gift cards. This approach can be particularly useful when you’re short of reaching the spending threshold and you’ve exhausted other usual spending options. Gift cards offer a way to essentially shift future expenses to the present, aligning immediate spending with earning potential rewards without unnecessary or imprudent spending.

Purchasing gift cards for retailers where you regularly shop—such as grocery stores, gas stations, or online platforms like Amazon—can be an effective strategy. You pay for the gift card with your new credit card, thereby contributing to the minimum spend, and use the gift card later at your convenience. This is not just limited to personal use; gift cards can also serve as thoughtful gifts for birthdays, holidays, or other occasions, thus fulfilling both a practical need and financial strategy.

It’s also possible to buy Visa, MasterCard, or American Express gift cards, which are more versatile. These can be used virtually anywhere credit cards are accepted, making them similar to cash. However, be mindful of potential activation fees, which can add to the cost.

Employing gift cards as a tool to meet minimum spending requirements should be done thoughtfully to ensure it genuinely benefits your financial planning without leading to overspending. This technique can bridge the gap between your regular expenditure and the target spend for earning bonuses, effectively leveraging your usual budget for maximum advantage.

Buy Gift Cards with Rakuten

Buying gift cards through Rakuten is a smart strategy for several reasons, particularly if you’re looking to maximize your savings and earn additional rewards beyond just meeting minimum spending requirements on credit cards.

• Cash Back Rewards: Rakuten is primarily known for offering cash back on purchases made through its platform. When you buy gift cards through Rakuten, you earn a percentage of your purchase back in cash. This can be especially beneficial if Rakuten is running a special promotion or increased cash back offer for certain retailers. Essentially, you not only fulfill your spending requirements but also get a return on that spend in the form of cash back.
• Stacking Rewards: Using Rakuten to purchase gift cards allows you to “stack” rewards. For example, if you buy a gift card for a particular store through Rakuten using a rewards credit card, you earn cash back from Rakuten plus whatever rewards your credit card offers (such as points or miles). This dual earning strategy maximizes the value of every dollar spent.

2. Sign up for a Credit Card Before a Big Purchase 

If you’re planning a large purchase, you can use this expense to quickly meet the minimum spending requirement. This not only ensures that you earn the bonus, often enough for a free flight or hotel stay, but also does so without altering your normal spending habits or stretching your budget.

Many travel credit cards also come with added protections such as purchase protection, extended warranty, travel insurance, and baggage protection. By charging a large purchase to a new travel credit card, you can take advantage of these benefits, providing you with extra security and peace of mind during your travels.

Strategically timing your credit card application to coincide with a planned big purchase can catapult your rewards earning potential, helping you maximize the travel points or miles you earn right from the start. This approach not only makes financial sense but also enhances your overall travel experience with valuable perks and protections.

3. Prepay Your Insurance 

Insurance premiums, particularly annual ones for car or home insurance, can be substantial. By prepaying these expenses, you can consume a significant portion of the minimum spending requirement needed to unlock lucrative credit card sign-up bonuses. This is especially useful if the spending threshold is high and might be challenging to reach with your everyday purchases alone.

By planning major expenses like insurance payments around the acquisition of a new credit card, you’re not just meeting spending requirements arbitrarily. Instead, you’re aligning necessary annual expenditures with strategic financial benefits, such as bonus points, improved cash flow management, and the advantages of credit card protections.

4. Send Money to a US Bank Account with Wise (formerly TransferWise) 

Wise, formerly known as TransferWise, is a global technology company that provides financial services for individuals and businesses looking to send and manage money internationally. Founded in 2011 by Kristo Käärmann and Taavet Hinrikus, Wise has grown from a cost-effective way to exchange currencies to a broad platform offering a variety of financial services.

Key features and services of Wise include:

Currency Exchange: Wise offers currency exchange services with a strong emphasis on transparency and low fees. Unlike traditional banks that often hide hefty charges in poor exchange rates, Wise uses the real mid-market exchange rate and charges a low, upfront fee, which can significantly reduce the cost of international money transfers.

Borderless Accounts: Wise provides a “borderless” account where users can hold, manage, and send money in multiple currencies. This account allows users to receive money from over 30 countries without any fees and spend abroad in the local currency with the Wise debit card.

Money Transfers: Users can send money to people in other countries quickly and at a much lower cost compared to traditional bank transfers. Wise’s platform is user-friendly and allows for easy tracking of transfers.

Wise permits payments via bank transfer, debit card, and credit card, among other options. However, the allowed methods can vary based on the country from which you are sending money.

You can use a credit card to fund a transfer with Wise, including Visa and Mastercard, leveraging this transaction to meet minimum spend. Using a credit card to send money via Wise often incurs a higher fee than other methods like bank transfers or debit cards, so this method should only be used as a last resort. This is because credit card providers typically treat these transactions as cash advances, which can lead to additional charges from your credit card issuer.

5. Put Money On a Prepaid Card 

Prepaid cards in Canada typically function similarly to debit cards but are not linked to a bank account. Users can load funds onto the card and then use it for purchases, online transactions, bill payments, and sometimes ATM withdrawals, depending on the card’s features and issuer.

These cards can be useful for budgeting, managing expenses, or for those who may not qualify for traditional banking services. They are often marketed as a convenient and secure alternative to carrying cash.

Some prepaid cards (like the PayPower card for example), allow you to load with a credit card, for a small fee. Unlike the TransferWise method, Canadians can benefit from increased points earning if they fund a prepaid card at a location with a points multiplier. For example, the American Express Cobalt card earns 5 MR points at grocery stores, so loading a prepaid card with your Cobalt Card at a grocery store will lead to increased earnings, which can offset the fees typically associated with a reload.

6. Retail Arbitrage 

This is a bit more time-consuming than the other methods described above, but it can be a lucrative method of hitting a minimum spend. There are several credit cards in the Canadian market which enable you to access further benefits when you hit a high spending threshold, so this method could be helpful if you’re looking to put a lot of spend on your card.

For example, Canadians will be able to qualify for 25K Elite status based on everyday spending. Canadians who earn 100,000 Aeroplan points via eligible sources throughout a calendar year will earn 25K status. Eligible sources include:

• Credit card spending
• Points accumulated through flying
• E-store purchases 

It may be challenging for the average Canadian to spend to the point where you earn 100,000 Aeroplan points. Retail arbitrage is a gateway to high spending.

Retail arbitrage is a business strategy where individuals or companies purchase products from retail stores or online marketplaces at a lower price and then resell them for a profit at a higher price on different platforms. The goal is to take advantage of price discrepancies between different markets or channels.

Here’s how retail arbitrage typically works:

• Sourcing Products: Retail arbitrageurs search for products that are priced lower than their market value. This can involve visiting clearance sections, sales, thrift stores, liquidation sales, or online marketplaces where items are being sold at a discount.
• Assessing Profit Margins: After finding potential products, retail arbitrageurs calculate the potential profit margins by considering the cost of purchasing the item, any associated fees (such as shipping or transaction fees), and the expected selling price on the platform where they intend to resell the item.
• Reselling: Once they have purchased the products, retail arbitrageurs list them for sale on various platforms such as online marketplaces (e.g., Amazon, eBay), their own e-commerce websites, or local marketplaces. They aim to sell the items at a price higher than what they paid, thereby generating a profit.
• Managing Inventory and Logistics: Successful retail arbitrage requires efficient inventory management and logistics. This includes storing inventory, handling shipping and fulfillment, managing returns, and ensuring timely delivery to customers.
• Scaling the Business: Some retail arbitrageurs focus on scaling their business by continually sourcing profitable products, expanding into new markets or product categories, or optimizing their selling processes to increase efficiency and profitability.

Retail arbitrage can be conducted both online and offline, and it doesn’t require significant upfront investment or specialized knowledge. However, it does require careful research, diligence, and the ability to adapt to market changes and trends.

One of the more popular ways of earning credit card points is by reselling on Amazon. If you’re interested in learning more, I strongly encourage you check out the Youtube channel FlipsbyMiles

7. Leverage Buying Groups

Buying groups, also known as purchasing groups or group purchasing organizations (GPOs), are entities formed by businesses or individuals with the purpose of leveraging their collective purchasing power to obtain better prices, terms, and services from suppliers. These groups aggregate the buying needs of multiple members to negotiate discounts and other favorable terms with suppliers, typically in exchange for membership fees or a percentage of the savings achieved.

When participating in a buying group in Canada, the consumer, or ‘buyer,’ follows a structured ordering process, albeit with some variations among different groups or clubs:

Firstly, the group notifies you of available product offers, typically through email, an online portal, or communication platforms like Discord, which they may utilize to inform members of deals.

Once notified, you proceed to purchase the products using your preferred payment method. Depending on the group’s policies, this step may involve selecting from various payment options.

Subsequently, you ship the purchased goods to the buying group’s designated location or warehouse. For drop shipping, simply input the buying group’s shipping information during checkout, possibly including an ID number or tracking details. Some groups may offer the alternative option of shipping directly to your address and then forwarding the items to the group using a provided prepaid label. Familiarizing yourself with the group’s shipping policies and guidelines is crucial to ensure compliance.

Upon receiving the item, the buying group credits your account for the purchase. Once the group acknowledges receipt of the item, they credit your account accordingly. Following this, you can request a payout, with methods varying among groups but commonly including options such as PayPal, e-check, or ACH transfers.

If you are interested in buying groups in Canada, feel free to check out Canada Buying Group

8. Purchase Something for a Friend or Family Member 

Purchasing something for a family member can be a strategic way to help you reach your minimum spending requirements for your credit card. Here’s how:

• Pooling Spending: If you’re part of the same household or have a close relationship with a family member, you can coordinate spending to consolidate purchases. This allows you to combine your spending with theirs to collectively meet the minimum spending threshold on your credit card more quickly.
• Authorized User: Adding a family member as an authorized user on your credit card account enables them to make purchases using the card. Their spending contributes towards meeting the minimum spending requirement, helping you reach the target faster.
• Joint Expenses: Many households have joint expenses such as groceries, utility bills, or household supplies. By using your credit card to cover these shared expenses, you can accumulate spending towards the minimum requirement while still fulfilling necessary purchases for the household.
• Gift Purchases: Buying gifts for family members, especially for occasions like birthdays, holidays, or special events, can be a convenient way to increase your credit card spending. You can use your card to purchase gifts for family members, thereby meeting your minimum spending requirement while also providing thoughtful presents.
• Reimbursement: If a family member plans to make a significant purchase in the near future, you can offer to make the purchase on your credit card and have them reimburse you directly. This allows you to meet your spending requirement upfront while avoiding any financial strain and ensuring that the spending is reimbursed promptly.
• Receiving Payments: Conversely, if a family member owes you money for previous expenses or loans, you can ask them to pay you back using your credit card. This inflow of funds onto your credit card account counts towards your spending requirement, helping you reach the target without additional out-of-pocket expenses.

By leveraging these methods, purchasing items for family members can serve as a practical and mutually beneficial way to meet your minimum spending requirements on your credit card. It allows you to reach your target efficiently while contributing to shared expenses or providing support to loved ones.

9. Buying Sports/Concerts Tickets

Buying and selling tickets can be a strategic method to help you meet the minimum spending requirements for your credit card. Here’s how:

Buying in Bulk: If you’re part of a group planning to attend an event or activity, consider coordinating ticket purchases and using your credit card to buy tickets for the entire group. This allows you to consolidate spending and reach the minimum requirement faster.

Season Tickets or Subscriptions: Buying season tickets or subscription packages for events, performances, or attractions can involve significant upfront costs. Using your credit card for these purchases helps you meet a large portion of your spending requirement in a single transaction.

Reselling Tickets: After purchasing tickets, you may have the opportunity to resell them for a profit. This can be especially lucrative for sought-after events or tickets with high demand. By reselling tickets through platforms like StubHub, Ticketmaster Resale, or Craigslist, you generate additional revenue that contributes towards your minimum spending requirement.

Ticket Brokering: Some individuals engage in ticket brokering as a side business. They buy tickets in bulk or during presales using their credit cards and then resell them at a higher price closer to the event date. This practice allows them to generate substantial spending on their credit cards while potentially earning a profit from the resale.

10. Use a Bill Paying Service

Many bills, such as rent, mortgage, insurance premiums, or utility bills, involve significant recurring payments. Using a bill-paying service to pay these bills with your credit card allows you to quickly reach a substantial portion of your minimum spending requirement, especially if these bills are typically paid by other means.

Most bill-paying services offer flexible payment options, including credit card payments, bank transfers, or checks. Opting to pay bills with your credit card allows you to leverage the benefits of your card, such as rewards points, cashback, or travel benefits while meeting your spending target.

Conclusion

Meeting credit card minimum spending requirements in Canada can be achieved through a variety of creative and strategic methods.

From leveraging everyday expenses and bills to utilizing purchasing groups, prepaid expenses, and bill paying services, there are numerous avenues to reach your spending targets while maximizing rewards and benefits.

By understanding your spending habits, exploring diverse spending opportunities, and staying informed about credit card features and promotions, you can effectively meet minimum spending requirements while optimizing your financial goals.

Whether you’re a seasoned points collector or new to the world of travel rewards, these strategies offer practical and efficient ways to unlock the full potential of your credit card benefits and enhance your overall financial management.