My latest card churn came with a pretty substantial set of minimum spending requirements. The days of getting massive sign-up bonuses simply by getting a credit card and only making 1 purchase are slowly becoming history. Obviously there are still many offers out there that will award the bonus after your 1st purchase, but credit card companies are consistently putting out more and more offers that require you to actually put some sizable spending on your card before they dole out a pile of points.
In order to be able to continue to accumulate a large stash of points from new card sign-ups, it will continue to be important that we continually take advantage of ways to get our spending up w/out having to significantly increase our expenses! My latest card churn is a perfect example.
The typical American is not going to be running $5,250/mo through credit cards, which is what I will have to average in order to hit the minimum spending requirements from this churn. I am a typical American. I do not have daddy’s slush fund to spend on lavish parties and bizarre random items that nobody has ever heard of. If I ran $5,250 worth of “Traditional” purchases through my cards every month, it wouldn’t take long before I had to file bankruptcy. (But I bet I’d have fun until then!)
So how am I going to put $21,000 in spending on credit cards in 4 months? With a little help from my friends! Here is a high level overview of how I plan to hit my minimums. Please do your own research and make your own decisions before implementing any of these methods.
The WF Prepaid is a great tool for hitting minimum spending requirements. WF will allow you to fund your prepaid card from any Visa or MasterCard, however you have to be careful. 1st of all when you are funding your prepaid card to hit spending, you need to make sure that it actually is going to be a purchase rather than a cash advance. Cash advances will kill you with interest and fees and on top of that they generally will not even count towards your spending requirements because it is not a purchase.
Based on FlyerTalk reports it appears that only Chase and B of A will code this as a purchase. I have also seen reports of US Bank coding as a purchase. CITI will code this as a Cash Advance
So what are the amounts I can load and what are the fee’s??
- $3 monthly maintenance fee -does not appear to be able to be waived.
- $5 load fee (per load using a non-WF credit or debit)
- $2,500 Max load in 24 hr period
- $3,500 Max load in 15 day period
- $4,500 Max load in 30 day period
So in order to maximize the WF card you would want to load as much as possible on each load as the fee is a flat $5. On day 1 I can load $2,500 for $5 then I need to wait until day 16 in order to do $2,000 on my next load. Then I can rinse and repeat starting day 31.
Monthly cost to manufacture $4,500 in spending in one month: $13
Ok so now the money is on the card but obviously I need to get my money out to pay the credit cards back or I will end up getting charged interest and that would defeat the purpose!
ATM Withdrawal – 2 free/mo from Wells Fargo ATM’s (max of $500 each)
VENMO – Venmo will allow you to deposit money into your Venmo account via debit card for free (most banks anyway) and then I can withdraw to my bank account from there.
BlueBird – You can load your BlueBird account free at Walmart stores and then use Bluebirds bill pay feature to pay your mortgage/rent and any other bills from there. Wells Fargo has a transaction limit on the prepaid of $600 so this will have to be done with multiple transactions.
If you don’t already use Amazon Payments you need to!! Amazon will allow you to send up to $1,000/ month to anyone else on Amazon Payments and fund it for free from a credit card! I can send my wife $1,000 and it then she can withdraw the money directly into her bank account. Easy spending! Just make sure you select product/service when you send the funds to another individual. A lot of people like to break it up into smaller amounts and stay under just under the $1,000 a month in order to avoid arousing suspicion from Amazon. I don’t break it into smaller amounts and have never had a problem, but do what you are comfortable with.
As both my wife and I have an Amazon Payments account we can get an additional $2,000/month spending via this method.
So between these two sources alone I can get $6,500/month in spending for a total cost of $13/month, not to shabby at all!
For more details and input these methods, send me your questions or checkout the online forums at FlyerTalk.