Minimum Spend

Reviewed by Apoorva | Updated on Sep 30, 2020


Minimum spend is a jargon referring to the least amount of money a customer must spend on his credit card within a given time frame to earn the card's sign-up bonus. Minimum spend is short for minimum spending requirement.

Meeting the Minimum Spend Requirement

Some consumers use creative ways to meet the minimum spending requirements. These methods include using credit cards to purchase money orders that can be used to pay providers that do not accept credit card payments, such as mortgage lenders. They may also use credit cards to purchase gift cards that can be used in future months. Such strategies are called manufactured spending.

Example of Minimum Spend

A credit card might offer a sign-up bonus of 40,000 points that can be redeemed for Rs.500 in airfare or Rs.400 in cash if you spend Rs.4,000 within the first three months of card usage. In this case, the minimum spend is Rs.4,000.

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