Some credit card issuers will cancel your monthly bill if it is too small, so if you charge only $ 1 or so on your card, you may not have to make the payment.
This could provide you with a way to make a little extra money each month while keeping your credit card accounts active in order to avoid having them canceled.
The credit card issuers presumably do this, because the cost of billing customers for such small amounts would outweigh the payments they receive, but not all issuers do this, and you’ll want to watch your bill closely if you try it, just to make sure that you don’t incur any late fees if they don’t waive your charges.
Basically, you just make a small charge on your credit card for an Amazon Gift Card or anything else that you can buy for a small amount, or you pay down the outstanding balance on your credit card bill until there is only a small amount remaining, and then the issuer will waive the remaining balance.
Remember, if you have been carrying a balance from your previous billing period, you should not do this without paying the total balance that you owe, or you will be charged interest.
In addition, there’s always the possibility that the Credit Card issuer may catch on if you are doing this on a regular basis, so they could always cancel your account for “fraudulent” activity, although you’re not necessarily breaking any rules by making small purchases on your credit card.
Still, the credit card issuers could change their policies at any time, so it’s a good idea to keep a close watch over your accounts if you plan to do this, and not to just set up your purchases on autopilot or anything like that.
List of Credit Card Issuers and Small Charge Waiver Amounts
- American Express – $ 1 (very inconsistent and may not work)
- BarclayCard – $ 0.99
- Capital One – $ 1.00
- Chase – $ 0 (not allowed anymore)
- Citibank – $ 0 (not allowed)
- Citizens – $ 0.99
- Comenity – $ 1.99
- Discover – $ 1.99
- PenFed – $ 1.00
- US Bank – $ 0.99
- Wells Fargo – $ 1.99
If you have any experience with these issuers or any other issuers, please feel free to post any information that you have in the below comments, and I’ll add them to this list.
It’s also important to note that this can change at any time, so you should experiment carefully on your own accounts to see what works or doesn’t work for you.
FatWallet – This information was originally posted on FatWallet several years ago, and you can review their threads for lots of user experiences.
Travel Codex – This information was posted on Travel Codex more recently, so you can find some up-to-date user experiences there.
Reddit Churning – The same info from Travel Codex was recently posted on Reddit Churning, so you can probably find some more recent user experiences there.