What is a sign-on bonus?

A credit card sign-on bonus (or “SUB”) is a bonus amount of cash back or points that you receive for spending a minimum amount in a specific time period on the new card. For instance, the Chase Sapphire Preferred typically gives 60k Chase points after you spend $4000 in the first 3 months of having the card, which is worth ~$800 towards travel if used well. If you can’t tell, credit card sign-on bonuses can be a great way to earn free travel, cash back, or other great rewards. However, in order to get the bonus rewards, you have to spend a fairly large amount in a reasonably short period of time.

For high spenders, hitting SUBs is generally straightforward: just spend as normal and you’ll hit the minimum spend without an issue. However, for others, meeting the minimum spending requirement can be a challenge, especially if you're not used to using credit cards.

Therefore, in this article, we want to share a list of some of the more unique ways to hit credit card sign-on bonuses that go beyond just normal spending, but that also don’t violate the terms of most credit cards (i.e., without manufactured spend, which is illegitimately spending on the card, such as buying thousands of dollars worth of gift cards to then be sold).

Now that we’ve got the basics out of the way, let’s jump into the list.

The best unique ways to hit credit card sign-on bonuses

1. Taxes:

Did you know you can pay your taxes with a credit card? For those of you having to pay large sums of taxes, you are able to use your credit card to pay your taxes every year. This can be a great way to hit sign-on bonuses, especially if you often make large tax payments. However, this does come with a ~1.85% fee, so make sure to take the fee into consideration; if the points you get back are less than the fee, this isn’t the option for you. To do this, simply choose “pay with credit card” when you are done paying your taxes, and you’re all set!

2. Pre-pay taxes

Sure, paying your taxes in April with a credit card is one way to do it, but did you know you can pay taxes any time you want? This is called making an “estimated tax payment”, which can be done at any point throughout the year, no matter how much you are paying in taxes.

To do this, simply file a 1040-ES (estimated tax) form and pay however much you need to cover the SUB on one of the IRS's payment sites and put it towards 1040-ES. You'll still be charged the extra 1.85%, so this strategy may be better suited towards higher SUBs.

But the best part of this strategy is that when you file your next taxes, you just fill out that you've filed a 1040-ES and it will be deducted from your amount due. If you've paid too much in taxes, you'll actually get it back as a refund!

3. Planning your new credit cards around trips

Another one of the best ways to hit sign-on bonuses without spending any extra money is to plan to get a credit card when you have a big trip coming up. As trips (and especially family trips with 3+ people) can cost thousands of dollars, using a new credit card for a trip can therefore make easy work of most sign-on bonuses. Plus, many of the cards with good SUBs also have good travel rewards and bonuses (such as travel spend bonuses, or free checked bags on flights): it’s a win-win! Many credit card pros will get a new card for every trip, so they’re always working towards sign-on bonuses with every trip they take.

4. Pre-pay utility bills

Many utility bills (e.g., insurance, utility, cell phone, etc.) can be pre-paid up to 6-8 months in advance, and can often be done with a credit card! This is an excellent way to hit SUBs as this is money you were already going to have to be spending, so there is no risk of overspending here. To do this, simply call your bill provider and they should be able to help you prepay; while this can sometimes come with a fee, it will come down to your specific utility provider. It’s worth calling all of them to see which ones let you pre-pay with a credit card.

5. Put all your spending on one card

Finally one of the simplest ways to hit a sign-on bonus is to simply ONLY use the new card for every single purchase, regardless of what the % reward is for that category of spend. While the success of this will depend on your total spending, it is a very efficient way to hit a SUB without putting in any additional thought: you have a purchase? You use the new card. The only consideration for this strategy is if your card has a foreign transaction fee and you are buying things abroad; in this case, you will lose

Summary

Overall, sign-on bonuses are some of the most fun and useful parts of getting a new credit card, and can give you enough points to go on luxury trips that would otherwise cost thousands. For tips on which credit cards to get, make sure to check out our recommendations!