There’s a minimum spend of $3,000 in the first 3 months on my credit card. How am I expected to spend all that?

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First, let’s define minimum spend.

A minimum spend is the required amount of money you have to spend within a period of time to earn the sign-up bonus from the credit card company. Typically, this period of time is within the first 3 months or 90 days of approval. The amount of minimum spends vary anywhere from $1 to $4,000. Many point-earning credit cards require you meet a minimum spend. The credit card offer will outline the minimum spend requirements.

Tips to help you meet the minimum spend:

Know your budget. Never sign up for a card that has a higher minimum spend than you can meet. Certainly, no points are worth incurring fees and paying high interest.

Think about your daily and monthly expenses. Anything that you already pay cash for should go on your credit card. These are things like gas, groceries, dining, utilities. Because, all of these things add up.

Can you put your rent or mortgage on your credit card? Most mortgage providers do not allow you to use a credit card, but many rental agencies do. Make sure you check with yours.

Do you have any taxes or mandatory big-ticket purchases coming up? If you own a car or a house, odds are you owe annual taxes. If you do, put them on your credit card!

What about big life events? Are you getting married? Having a baby? These are things that are typically budgeted for and expenses should be placed on credit cards, if possible.

Did you just move into a new house? You’ve probably budgeted for that new couch or for the dining room to be painted. Similarly, these are things that should go on your credit card.

It’s a lot easier than you think to hit these minimum spends responsibly and without over-extending yourself.

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