In episode 42 of Miles Ahead: The Canadian Points Podcast, Daniel, Jeff, and Josh from FrugalFlyer.ca discuss minimum spending requirements (MSR), including the basics of what they are and practical strategies to meet them.
The hosts share their early MSR experiences and how MSRs work, including that the MSR clocks start at card approval, advise planning spend before applying, and recommend saving screenshots of offer terms. Easy methods include using Chexy or Casa to pay rent and other bills, buying gift cards cautiously, booking and later canceling refundable hotels to extend timing, prepaying insurance/utilities, paying health expenses for reimbursement, aligning applications with travel or big purchases, and covering group expenses for reimbursement.
They then explain manufactured spending, its risks and secrecy, and cover the PayPower Mastercard, buying groups, and discontinued plays like Revolut, the Air Canada Conversion Card, and Mogo.
(00:53) The Team’s First Big MSR Stories
Josh, Jeff, and Daniel all share their stories about hitting their first big minimum spending requirement for a welcome bonus and how they achieved it.
(04:24) Minimum Spending Requirements: Basics & Timing
Minimum spending requirements are tied to credit card welcome bonuses and require spending a certain amount of money in a set period of time. The timer starts once the card is approved.
(06:22) Tracking & Planning Minimum Spending Requirements
Before you apply for a new credit card, you need to have a plan as to how you will meet the minimum spending requirement. It’s always worth tracking what the offer was and how close to the spending requirements you are as well.
(08:18) Chexy for Minimum Spending Requirements
Chexy, a rent and bill payment service in Canada, is one of the best tools currently for meeting minimum spending requirements with a reasonable fee.
(12:01) Casa: Another Rent Payment Service
Casa is another rent payment service, similar to Chexy, that lets you pay your rent with an eligible Visa or Mastercard for a small fee.
- Learn More: Earn Credit Card Rewards with Casa
(12:52) Straightforward Ways to Hit MSRs
There are no shortages of ways to approach reaching a minimum spending requirement, including gift cards (but proceed with caution), the refundable hotel trick, or prepaying bills such as insurance or utilities.
- Learn More: How to Meet Minimum Spending Requirements
- Learn More: Using Gift Cards to Meet MSRs
- Learn More: The Refundable Hotel Trick
(16:39) Additional Ways to Boost Spending for MSRs
Planning around large purchases, charging part of a new car purchase, paying for group events or dining, and updating preset bills to your new card are all great ideas to implement as you work towards your next minimum spending requirement.
(21:22) Manufactured Spending 101
Manufactured spending is a circular spending method, where you can generate credit card charges and liquidate those funds while spending minimal money out of pocket.
- Learn More: The Gentleman’s Guide to Manufactured Spending
(25:04) PayPower: Method and Risks
PayPower is a digital prepaid Mastercard that has been around for a long time in Canada. Cardholders can load this card at grocery stores and then access the funds through a variety of methods.
- Learn More: PayPower Mastercard Guide
(31:17) Buying Groups Explained
Buying Groups ask members to purchase items at a discount and ship them to their warehouse, while reimbursing members after items are received.
- Learn More: Buying Groups Guide
- The Best US Buying Group: Buying Group Signup
- Resource for More Information: Buying Group Gurus
(38:38) Post Mortem: Revolut
Revolut, when it was available in Canada, let users load their account with a credit card and then simply withdraw the balance back to their bank account, allowing them to pay off the card.
- Read More: Revolut Post Mortem
(42:46) Post Mortem: Air Canada Conversion Prepaid Card
The Air Canada Conversion Prepaid Card wasn’t around for long, but when it was, cardholders could load their account with an eligible credit card and then withdraw the funds at a CIBC ATM for no cost.
44:58 Post Mortem: Mogo Prepaid Card
Through a roundabout method, users could generate bonus cash back and spend throughout the Mogo Prepaid Card for a period of time.
- Read More: Mogo Post Mortem
(49:12) Conclusion
If you have any episode-specific questions, leave a comment below. If you have any questions you want answered by the Frugal Flyer Team in a future episode, submit a question to the Miles Ahead podcast.
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