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Matt Carpenter Shows Us 3 Ways to Make the Most Out Of Credit Card Sign-Up Bonuses

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Getting free cash from your credit cards never hurts. Here’s how to make sure you’re putting it to good use.

  1. Spend the money on necessities

Once you have acquired your sign-up bonus, allocate a portion or the total sum of it towards a fund for your everyday necessities. Though it may be tempting to splurge on a new electronic device or vacation, it is smarter and more beneficial in the long-run to use that money to cover items you need on a day-to-day basis, such as groceries, bills, toilitries, medication and utilities. This is especially useful if you find yourself or your family in a tight spot with money, or if work is particularly slow. There is no shame in being prepared or living within your means, and living practically and responsibly. 

  1.  Use that cash bonus to pay off debt

Debt is a scary thing. It can destroy your credit score and cost you tons of money in interest charges. Debt also makes it much harder for you to be able to borrow money when you need to. Using the extra money from a sign-up bonus towards paying off a debt can automatically save you money on interest, and get you that much closer to living your life debt-free. 

  1. Save the money for a financial crisis

Disaster can strike at any moment, without cause and without warning. The best way, and really the only way, for you and your family to make it through, is to be prepared. If worst comes to worst (or in layman’s terms, if shit hits the fan), you will have peace of mind knowing you have a plan and a safety net in place. Also, the aftermath of said disaster will be much less stressful, and much easier to bear. One day you could get stuck in the middle of a pandemic and lose your job. A natural disaster could strike and wreak havoc on your home or yard. Your car could break down or you get in a bad accident, or get slammed with medical bills. Without a savings account, you take on the enormous risk of running up a credit card tab needed to cover these last-minute expenses. So, if you find yourself low on savings, it is definitely a great idea to use your sign-up bonus as a nice padding for your emergency fund, and it pays off to know you are prepared for whatever life throws at you. 

While free money is never a bad thing for anyone, keep in mind that you do have to spend money in order to get money, in the form of a “minimum spending requirement.” Chasing sign-up bonuses by applying for multiple credit cards within a short period of time can ultimately hurt and chip away at your credit score. Play it safe and be aware of the qualifications you need before applying for a credit card, and make sure it is easily attainable for you to be approved. Be sure that you have the funds on hand to meet the spending requirements before you sign-on for anything, and keep an organized record of the spending and making payments on time. 

Matt Carpenter is a leader in the credit consulting space, and has helped to successfully repair 500+ credit scores. His focus and determination on quick turnaround, high-quality work, and client relationships has built his reputable name and business on a strong foundation of happy customers, and a long list of referral partners. 

Credit is like fitness, a lifestyle that requires consistency. It’s time to acquire a better financial routine. For more tips & tricks, or to reach out to Matt, head over to his Instagram: @thematthewcarpenter and @peakcreditcourse 

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The Flourishive Magazine tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience.