Credit Card Funding: The Easiest Manufactured Spending
You already know the best way to rapidly accumulate credit card points is through new card bonuses, but meeting the spend requirement to trigger one of these bonuses can be difficult. You don’t want to spend money just to hit a bonus, that cuts into your profits. One way to accomplish this goal is through manufactured spending and using credit cards to fund new bank accounts.
Many banks will allow credit card funding when you open a new account.
This is by far the easiest way to manufacture spending on your card (purchase on a card that counts towards your minimum spend requirement but you haven’t spent any money). You don’t even have to leave the couch.
Often banks will pay you a bonus to open a new account so you can maximize your profits even further if you use credit card funding to hit another bonus. Two birds! Here is a profitable example with almost no requirements:
Premier Members Credit Union Reverse Tiered Money Market Account
This savings account features 4% APY (on up to $2,000) plus a $50 Referral Bonus. Opening this account is a soft credit pull so it doesn’t affect your credit score and it codes as a purchase so you are not charged a cash advance fee*. It’s available nationwide. You can use a credit card to fund up to $1,500 which will get you halfway through most minimum spend requirements.
Use my referral code to get a $50 bonus. Enter this code in your application: MXMUWAUYM
You can transfer money out of this account at any time but I will be leaving it in there as 4% APY on a savings account is a great rate. You will only earn the full 4% on the first $2,000 in this account and progressively less as your account size grows. This makes for an excellent emergency fund.
Further reading
- Doctor of Credit on credit card funding and a long list of bank account bonuses
- Doctor of Credit
Referral Links
*Occasionally, funding a bank account will code as a cash advance. Cash advances on credit cards incur very high fees that accrue interest instantly. However, cash advances will be declined if they are higher than your cash advance limit, so you should lower that limit as much as possible. You can lower your cash advance limit by calling your bank or sending them a secure message through online banking. If you do get charged a cash advance fee, pay it off instantly and move on. There is no way to fight this.
