"If the OP opens the new card specifically to pay insurance premiums, this should hopefully give him enough money to earn the new cardmember bonus for that card, without feeling pressured to spend on a bunch of stuff. New cardmember bonuses often require you to spend $500 or even $1,000 or more in the first three months to qualify for added cash back, rewards, or miles. Covering one big fixed cost on the card eliminates the need to do that, reducing the chances of overspending."
"Too many inquiries hurt your credit score. Inquiries are requests to check your credit when you apply for a new loan or a new card. They stay on your credit history for two years, and too many can reduce your score because applying for so much credit in a short time suggests you may be getting into too much debt."
One strategy is to open a new credit card each year and charge a large recurring bill, like insurance, to meet the signup spend requirement. Using a single large payment can trigger new cardmember bonuses without pushing for additional discretionary spending. New card bonuses often require $500 to $1,000 in the first three months, and covering a fixed cost reduces the chance of overspending. Downsides include hard credit inquiries that remain on the credit file for two years and can lower scores, along with a reduced average age of credit accounts, which can also hurt creditworthiness.
Read at 24/7 Wall St.
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