The Best Credit Cards For Large Purchases

Typically the way to maximize credit card rewards is to take advantage of the best credit card welcome offers and also to use the cards with the best bonus categories.

Many people may find themselves in a situation where they need to make a very large one-time purchase. Maybe you’re paying taxes by credit card. Maybe you’re doing a home renovation. Maybe your business has a huge purchase it needs to make.

Assuming your purchase isn’t in a category that otherwise qualifies for a bonus category (like dining, groceries, gas stations, airfare, hotels, etc.), what’s the best way to maximize rewards? Of course let me note upfront that this is contingent on having a card with a high enough credit limit for this kind of a purchase.

Admittedly there’s no one size fits all answer. It depends on what rewards and perks you value most, and it depends on just how much you’re spending (after all, “big spending” means different things to different people).

In this post I wanted to take a look at how I’d go about deciding which card to use for a large purchase, so that you can hopefully at least come up with an approach that works for you.

In this post:

Credit cards often have big welcome offers, and the spending requirements to unlock those bonuses can vary. Sometimes you can unlock the bonus after a single purchase, and sometimes you can unlock the full bonus after tens of thousands of dollars of spending.

So if I do have a big purchase to make, my first consideration is if there’s any card that I’ve been considering applying for that has a big spending requirement. These kinds of situations can be the ideal time to pick up a card like this. This would probably get you the highest return per dollar spent of any of the possible options.

Another logical option for your spending would be to simply use one of the best cards for everyday spending.

Nowadays you don’t have to work hard to get a good return on spending, as you can earn 2x transferable points per dollar spent with cards like the Capital One Venture X Rewards Credit Card (review), the Capital One Spark Cash Plus (review), the Citi® Double Cash Card (review), etc. Based on my valuation of points, those rewards can potentially equate to a 3.4% return on spending.

If you’re looking to earn something beyond just points or a welcome offer with a big spending amount, there are quite a few airline credit cards that offer significant incentives for spending. This can either be for spending any amount, or there are certain threshold bonuses. Let’s break this up into two categories, and I’ll list the opportunities I consider to be most lucrative.

For one, there are airline credit cards that can help you earn airline elite status, with the most lucrative opportunities being the following:

There are also airline credit cards that can help you earn companion perks, with the most lucrative opportunities being the following:

Not only are there lucrative airline credit cards if you’re spending big amounts, but arguably there are even more lucrative opportunities with hotel credit cards. This can either be for spending any amount, or there are certain threshold bonuses. Let’s break this up into two categories, and I’ll only list the opportunities that I consider to be most lucrative.

For one, there are hotel credit cards that can help you earn hotel elite status, with the most lucrative opportunities being the following:

There are also hotel credit cards that can help you earn free night awards, with the most lucrative opportunities being the following:

While the above are what I consider to be among the most lucrative options for big spending amounts, what’s my personal strategy? If I’m not trying to reach a minimum spending requirement on a card, usually my spending for big purchases goes onto one of three cards:

Many people view a big purchase as an opportunity to maximize their credit card rewards. There are several great strategies that you can take to maximize your rewards, as I don’t think there’s one best approach to take.

At a minimum, just use a card that’s best for everyday spending. However, ideally take advantage of a card with a welcome bonus that has a big spending requirement. Alternatively, airline and hotel credit cards sometimes have very lucrative spending bonuses, which can prove worthwhile.

What’s your credit card spending strategy for big purchases?

It depends on what one defines as "large." To some people, a "large" purchase might exceed the likely credit limit on most cards. Which would force a person to use a charge card. Then, the field of contenders is quite narrow, with the Amex Business Platinum being a prime candidate.

When I make a large purchase I’m not worried about points. I’m worried about protection. Will the credit card have my back if something goes wrong? If it’s AMEX, the answer is yes. AMEX has resolved thousands of dollars of disputes in my favor that I don’t think other issuers would have. So AMEX gets all my big ticket expenditures.

@grichard's suggestion is great. Otherwise, I would put it on BOA premium rewards card to get 2.625% cash back. Given the poor value that most people with less than generously flexible schedules get with airline & hotel points, I think it's best to aim for the most cash back.

If the big purchase is at a retailer, check out the option of making the purchase and simultaneously opening a store charge card. They sometimes have lucrative first-day discounts.

A few years ago I opened a Home Depot card when I ordered about $30K of cabinets for a kitchen rehab, and they did indeed give me the promised 10% off.

What about the Biz Plat at 1.5x on purchases over $5,000?

Seemingly inconsequential if you also have the Blue Business Plus which is 2x on everything.

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Seemingly inconsequential if you also have the Blue Business Plus which is 2x on everything.

What’s your credit card spending strategy for big purchases?