I’m going to write about one of my favorite ways to easily meet the spending requirements typically required for credit card sign up bonuses. This method is also helpful if you’re a bit short on miles or points for an award redemption.
First off, this works for me because I pay my credit cards off in full each month and thus avoid any interest. If you’re unable to pay your credit cards off in full I do not recommend doing anything discussed below.
The premise of prepaying bills is simple but often overlooked. In some instances prepaying allows you to minimize flat fees charged when paying with a credit card. The thinking is that I’m going to consume these utilities sooner or later and this way I don’t purchase anything needlessly to meet a spending requirement. Here’s some of the bills I prepay:
- Verizon Fios – There’s no charge to pay your monthly bill with a credit card and you can prepay up to $24999.99 with a one-time payment. I only use Verizon for internet so I won’t prepay more than $500. The resulting credit balance will usually get used up within 7-8 months.
- T-Mobile – No charge to pay with credit card or prepay your bill. You can prepay up to $25,000.01. My monthly bill is $100+ so I will comfortably prepay $1,000 knowing the credit balance will be used up in 9-10 months.
- DirecTV – You can’t really prepay much with them as they only allow you to pay $100 over your current balance at any given time.
- EZPass – I live in an area infamous for tolls. Tolls around here aren’t cheap and really do add up. No fee to prepay account up to $99,000 max. Yes, the maximum amount allowed on their website is $99,000.
- PSE&G – This is my local electric and gas provider. $3.95 fee / $1,500 max
- Suez – This is my local water utility. $1.99 fee / $1,000 max