Few things in life entice me more than a big welcome bonus on a rewards credit card.
There are many great bonuses vying for my attention right now, and despite maintaining a healthy credit score, it isn’t sensible for me to apply for all of them.
Writing about credit cards and points and miles on a daily basis, I always have my eye on the best offers available, especially when new products enter the market. When these cards increase their welcome offers for a limited time only, I’m even more tempted to apply.
However, one thing that gives me pause is ensuring I can meet the minimum spending to earn these welcome bonuses; otherwise, I might miss out but still be paying an annual fee.
That’s why I’ve developed a strategy of timing my credit card applications around the big, unavoidable annual bills in my life to ensure I can hit the spending required to enjoy those rewards.
Here’s how this strategy works for me, some pitfalls to be aware of and the elevated welcome bonuses I have my eye on right now.
Related: 5 things to check before applying for your next credit card
The upside of my unavoidable big annual bills
Hitting a minimum spending requirement, especially in the $6,000 to $10,000 range, can feel daunting if you only focus on daily expenses, considering you might not use your card every day.
However, a single large bill can knock out most (or all) of that target instantly.
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I’m a homeowner in Australia and know I will receive the renewal invoice for my building and contents insurance each year in February, due in March. Though I never enjoy the thought of having to fork over several thousand dollars every year for this, I do know it must be paid, and it can meet a decent chunk of the minimum spending requirement for a credit card welcome bonus.
I also receive my annual property tax assessment in April. I have the option of spreading the payments evenly across the year with a monthly direct debit, but I prefer to pay the whole amount at once by credit card.
I’ve also noticed my everyday spending changes a fair bit depending on the season. I usually spend more in the summer when I’m maximizing my time outdoors, socializing with friends and going on summer holidays. The spending then usually shrinks in October and November before ramping up again in December as the holiday period brings gift buying, parties and festive home decoration. So, although the February-to-April period is the most reliable for large, predictable expenses, I know certain other periods of the year make it easier to meet the minimum spending for welcome offers than others.
I always want to ensure I can pay my bills on time (and consider that there could potentially be delays in the approval of my new credit card, especially if I have had a number of card approvals recently and have high lines of credit open), so I like to apply for the new card a few weeks before I know I’ll receive these big bills.
Related: Why I charged $50,000 on my United card to get closer to Platinum elite status
Predictable expenses you can plan around and pitfalls to avoid
Your predictable annual bills may differ depending on your personal situation and where you live, but here are some you may be facing that could help with your welcome bonus strategy, especially if you are a U.S. homeowner:
- Property taxes: Many counties bill twice per year (e.g., Los Angeles County in November and February) while New York City bills quarterly or semiannually. Card payments typically add about 2%-3% in convenience fees (e.g., New York City adds 2%; Los Angeles County adds about 2.22%).
- Income taxes: To top off a welcome bonus, you might consider paying via an IRS‑authorized processor (fees apply): Pay1040 charges 1.75% for consumer credit and 2.89% for commercial, and ACI Payments charges 1.85% for consumer credit. Form 1040 card payments are limited to two per year by payment type. PayUSAtax no longer accepts IRS payments.
- Vehicle registration: Deadlines are state‑specific (e.g., Florida registration renews on the owner’s birthday; Texas registration renews the same month every year). Online card payments often add around 2% (e.g., the California Department of Motor Vehicles adds 1.95%; the Wisconsin Department of Transportation adds up to 2.35%).
- Insurance premiums: Auto policies are commonly six or 12 months; homeowners/renters are typically annual. Many carriers accept credit cards; some add small convenience fees. Check your insurer’s billing page.
- Homeowners association/condo dues: Community portals (e.g., ClickPay, AppFolio) usually allow cards with up to a 3% fee; paying via automated clearing house, or ACH, is often cheaper.
- Tuition and school fees: Bursar sites using TouchNet/Nelnet typically accept credit cards with around 2.85%-2.95% fees; bills line up with semester starts (August/September and January).
- Year‑end charitable giving: Donations made by Dec. 31 count for that tax year, but you must keep receipts/bank records.
Related: Should you pay your rent with Bilt? We crunch the numbers
Once you know when your big expenses will hit, there are some important conditions of these welcome offers and pitfalls of this strategy that you should be aware of:
- Don’t pay excessive fees: Some bill processors charge credit card fees of up to 3%. Those fees might only be worth paying if you would otherwise fail to hit the minimum spending to earn the welcome bonus, as the fees you pay could total more than the rewards you earn.
- Credit card annual fees don’t count toward welcome bonuses.
- Watch how payments are coded: Avoid anything that might be processed as a cash advance, such as money transfers, prepaid reloads, or person-to-person payments. These typically don’t count toward minimum spending and can trigger fees and interest immediately.
- Keep an eye on the clock: The spending window usually starts on your approval/account opening date, not when the card arrives in the mail. It’s a good idea to set some calendar reminders a week before your minimum spending window expires so you can check how you’re tracking. Also, take into account any delays the card issuer might have in approving your application.
- Remember the magical spending amount: I once missed out on the welcome bonus on a Delta Air Lines American Express card as I thought the spending required was $2,000 when it was actually $3,000, and Amex would not budge once the spending window had expired. Don’t make the same mistake I did.
The elevated welcome bonuses I want to earn right now
Here are the credit cards and welcome bonuses I have my eyes on right now, in order of preference:
- Atmos Rewards Summit Visa Infinite® Credit Card: Earn 100,000 Atmos Rewards points and a 25,000‑point Global Companion Award after spending $6,000 or more in the first 90 days from account opening.
- Citi Strata Elite℠ Card (see rates and fees): For a limited time, earn 100,000 bonus ThankYou Rewards points after spending $6,000 on purchases in the first three months from account opening.
- American Express Platinum Card®: Find out your offer and see if you are eligible for as high as 175,000 Membership Rewards points after spending $8,000 on purchases in the first six months of card membership. Welcome offers vary, and you may not be eligible for an offer.
- Chase Sapphire Reserve® (see rates and fees): Earn 125,000 bonus Ultimate Rewards points after spending $6,000 on purchases in the first three months from account opening.
The new Atmos Rewards Summit card is at the top of my wish list even though I’ve never flown Alaska Airlines (and I probably never will). The offer featuring 100,000 of the most valuable airline points you can earn is very lucrative, as is the flexible 25,000‑point Global Companion Award, which can be redeemed on all of Alaska’s airline partners, including British Airways and American Airlines. That perk is ideal even for someone like me, who doesn’t fly Alaska Airlines.
Earning 3 points per dollar spent on all foreign spending is incredibly generous, so I want to pick up this card sooner rather than later, likely in the next month or so. Then, I can funnel holiday expenses like gifts and end-of-year celebrations to meet the minimum spending.
I had been on the fence about the Citi Strata Elite Card until the Citi ThankYou Rewards program added American Airlines AAdvantage as its newest transfer partner. I hold the Citi Strata Premier® Card (see rates and fees), which has been one of the most rewarding and underrated credit cards I’ve ever had, thanks to the fact that many categories earn 3 points per dollar spent. When the Strata Elite launched, there were some interesting earning rates, though nothing was really a slam dunk given the high annual fee.
However, when American Airlines AAdvantage joined Citi’s transfer partner roster, my whole rewards strategy changed, and this card became much more desirable. When the welcome offer recently increased from 80,000 to 100,000 ThankYou Rewards points, I made up my mind.
Still, I need to be sensible with timing the minimum spending of both cards and plan to add the Strata Elite to my wallet toward the end of the year (I’m crossing my fingers the elevated welcome offer remains until then). This means I will still be within the first three months when the first of those annual homeowner bills start rolling in.
Bottom line
There are many great welcome offers available on excellent rewards credit cards right now, and there are times I want all of them at once.
Over many years of earning and burning points and miles, I have learned to be patient and space my applications out strategically across the year. Welcome offers change regularly with little notice, and of course, if I wait a few months, I might miss out on the highest offers of these cards mentioned above.
Sometimes I’m forced to choose between applying for a card when I’m unsure if I’ll meet the welcome bonus (because an especially good offer is ending soon) and potentially having no elevated welcome bonus to work toward when the big bills are due.
However, I’ve found there’s usually a good card available that I want with an elevated offer when I have big expenses, and that works for me. I usually avoid paying large bills on a credit card with a processing fee of more than 1%.
Knowing that I have big bills rolling in every year (especially from February to April), as well as seasonal holiday spending, I can feel confident that it will be easy to meet a minimum spending requirement several times per year.
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