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If you’re just starting to earn points, credit card sign-up bonuses or welcome offers can be a critical part of your strategy for saving on your next trip. In today’s post, we’re going to cover everything you need to know about how sign-up bonuses work and why you should care about earning them.
Page Contents
- Why Do Banks Offer a Sign-Up Bonus?
- What is a Credit Card Sign-Up Bonus?
- How Does the Minimum Spending Requirement Work?
- When Does the Clock Start on a Credit Card Sign-Up Bonus?
- How Do I Meet the Minimum Spend?
- Earn a Sign-Up Bonus After Making Your First Purchase
- Consider Annual Fees
- Types of Sign-Up Bonuses
- Best Credit Card Sign-Up Bonus
- Not All Points Have the Same Value
- Final Thoughts
- FAQ
Why Do Banks Offer a Sign-Up Bonus?
Travel rewards cards are a lucrative business for big banks. The competition for the best customers is fierce, so credit card issuers offer sign-up bonuses to attract new card members. The bank hopes you'll remain a card member for a long time after earning the sign-up bonus. That way, they'll recover the cost of acquiring your business throughout your relationship.
Earning these sign-up bonuses can be a great way to start building a long-term credit card strategy.
What is a Credit Card Sign-Up Bonus?
There are many kinds of sign-up bonuses, but the most simple and common format gives you a limited time window in which to spend a certain amount of money on your new card. In exchange, the bank awards you a one-time bonus — usually points, miles, or cash back. Let's look at an example.
The Chase Sapphire Preferred® Card is one of the top cards we recommend to points and miles beginners. The current offer is 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
- Rates & Fees
- 5X points on Lyft rides through September 2027
- 5X points on travel purchased through Chase Travel℠
- 3X points on dining at restaurants worldwide
- 3X points on eligible streaming services
- 3X points on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
- 2X points on all other travel
- 1X point per dollar spent on all other purchases
Compare that to a cash-back offer, such as the one attached to the Capital One Savor Cash Rewards Credit Card. Instead of awarding points, you'll get a one-time credit of $200 Cash Back applied to your statement after you spend $500 on purchases within 3 months from account opening.
- $200 Cash Back after you spend $500 on purchases within 3 months from account opening
- 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®)
- 1% on all other purchases
- No foreign transaction fees
- $0 annual fee
- 8% cash back on purchases made via the Capital One Entertainment ticketing platform
- 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply)
- 3% cash back on dining and entertainment
- 3% at grocery stores (excluding superstores like Walmart® and Target®)
- 3% on popular streaming services
- 1% on all other purchases
Related: Back to Basics: An Introduction to the Types of Reward Points
How Does the Minimum Spending Requirement Work?
The amount you need to spend to earn your credit card bonus is called the “minimum spending requirement.” You won't get the bonus points if you don’t meet this requirement within the timeframe.
Most requirements are about 90 days / three months, but you may see variations for longer timeframes. This is especially true if your bonus is two-tiered.
Tiered (multi-part) minimum spends and bonuses
Most often, a welcome offer comes with a straightforward spending requirement, but some offers use a tiered structure. For example, you might be able to earn part of the total bonus offer with a lower spending requirement, with the option to earn even more points/cash back after achieving a more ambitious spending target.
The second tier of these offers is generally cumulative. However, confirming the details of the offer before applying for a card is always a good idea to ensure you know exactly how much you need to spend and the relevant deadline.
When Does the Clock Start on a Credit Card Sign-Up Bonus?
The clock starts ticking on your time to meet the minimum spend the day you are approved for the card — not the day you receive the card in the mail or activate it. If the card you apply for doesn't show the card number instantly upon approval, you may lose a week or two to collect your bonus while waiting for your physical card to arrive.
If you expect to complete your minimum spend close to the deadline, it's a good idea to call the number on the back of your card to confirm when the offer expires. Remember that many purchases take a day or two to post to your account, so try not to wait until the last minute.
Related: How To Track Your Progress Toward a Citi Sign-Up Bonus
How Do I Meet the Minimum Spend?
The biggest key to earning your sign-up bonus is picking an offer that fits your normal spending patterns. Your goal should be to meet the minimum spend with purchases you would make anyway.
If you worry about being able to meet the minimum spending requirement, then consider timing your credit card sign-ups for when you have a large purchase to make. Purchases outside the norm may help you to meet a more ambitious minimum spending requirement. Additionally, consider whether you can pay your rent or mortgage by credit card, plus paying taxes with your card, or even your (or your child's) college tuition.
If you need to spend a little extra to get yourself to the finish line, consider buying gift cards to places you normally shop. This strategy lets you pre-pay for future purchases on your new card. If you do this, be careful: Make sure you can pay off the bill in full each month. Credit card interest will negate the value of any rewards you earn.
Need more ideas? Check out our dedicated post on how to meet minimum spending requirements.
Earn a Sign-Up Bonus After Making Your First Purchase
Not all cards require you to meet a large minimum spending requirement to earn a lucrative bonus. Some cards award the bonus after you make your first purchase — or even instantly once approved. If you have limited expenses, you can put on a credit card; these types of offers can be a great way to boost your rewards balance. Just buy yourself a pack of gum and earn a stash of points to plan your next trip.
Important: Pay attention to the timeframe for making the first purchase. Although these offers don't come with a traditional minimum spend, there is usually a deadline or additional requirements to qualify for your bonus — such as paying the card's annual fee.
- Get $25 back as statement credits on inflight WiFi on American Airlines operated flights.
- Receive 25% inflight savings when you use your card for food and beverages on American Airlines operated flights.
- Earn a companion certificate each anniversary year, good for 1 guest at $99 (plus taxes and fees) if you spend $20,000 on purchases and your account remains open for 45 days after your anniversary date.
- Earn 2X miles on American Airlines purchases
- Earn 1X miles on all other purchases
Consider Annual Fees
Many of the best rewards cards come with an annual fee. But sometimes, that fee will be waived for the first year as part of the credit card bonus offer. This allows you to get the sign-up bonus and try out the card for a year at no cost. After that first year, you can decide if it is worth keeping the card and paying the annual fee.
In other cases, the annual fee will be billed to your account when you're approved for the card or shortly after that. This adds to your cost of opening a new account, but any sign-up bonus worth considering will compensate for an upfront annual fee. For example, the Marriott Bonvoy Boundless® Credit Card card offers an annual free night (worth up to 35,000 points) every year on your account anniversary. If you stay with Marriott at least once per year, it should be easy to get more value from your free night than the cost of the $95 annual fee.
- Earn 6X Bonvoy points per $1 spent participating Marriott Bonvoy hotels, 3X points per $1 on the first $6,000 spent in combined purchases each year on grocery stores, gas stations, and dining, and 2X points per $1 on all other purchases
- Earn 3 Marriott Bonvoy® points for every $1 on the first $6,000 spent in combined purchases each year on gas stations, grocery stores, and dining
- Earn 2X Bonvoy points for every $1 spent on all other purchases
Other cards come with annual fees that are much higher — from $250 to nearly $700. These cards come with benefits like access to airport lounges, statement credits towards travel purchases, hotel or airline status, more comprehensive travel insurance, the ability to earn more points on certain purchases (like 3x points on dining purchases), and more! These cards aren’t for everyone, but if you are able to utilize the benefits they can be well worth the annual fee.
- Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Travel℠. For example, 60,000 points are worth $900 toward travel.
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $120 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance and more.
- Member FDIC
- Rates & Fees
- 10X points on hotels and car rentals purchased through Chase Travel℠
- 10X points on Chase Dining (including prepaid reservations and prepaid takeout purchased through Chase)
- 5X points on airfare purchased through Chase Travel℠
- 3X points on all other travel
- 3X points on dining at restaurants
- 1X points on all other purchases
Types of Sign-Up Bonuses
Besides points and miles, you may encounter other types of credit card bonus incentives. These could be statement credits after making purchases with certain merchants, subscriptions or memberships, elite status with a partner loyalty program, or free hotel nights.
Below are a few historical examples.
- Hilton's co-branded credit cards have offered a free night award in addition to bonus points.
- Some of Marriott's co-branded credit cards have offered free night certificates in lieu of points.
- Southwest's co-branded cards have offered a one-year Companion Pass or a Southwest flight discount for cardholders.
- American Express cards previously offered a one-year WeWork Membership.
- Delta's co-branded cards have offered $100 or more in statement credits when you make a Delta purchase.
- Both Delta and United credit cards have offered additional steps to help you earn elite status.
Please note that these examples are for illustrative purposes only; they do not represent the current offer for the cards mentioned.
Best Credit Card Sign-Up Bonus
The right timing can make a huge difference in the number of points or miles you can earn from welcome bonus offers. Most cards have a standard sign-up bonus or welcome offer that is in effect for most of the year. But periodically, many of them will run a limited-time, increased welcome offer.
In a series of posts, we've taken a look at historical offers to help judge when you should apply for some of the most popular rewards cards. You can find the offer history and records of best-ever offers from major card issuers in the posts below:
- American Express: Best-Ever Offers and When You Should Apply
- Capital One: Best-Ever Offers and When You Should Apply
- Chase: Best-Ever Offers and When You Should Apply
- Citi: Best-Ever Offers and When You Should Apply
Several of these top credit card offers are available now! But offers change all the time, so it’s best to stay updated and find a card that works best for you. If you’re a small business owner or a freelancer, you can get a card that has valuable offers for small businesses.
If you’re smart (or just lucky) you can find a card that has a welcome bonus of 100,000 points or more.
While it's always best to snag these limited-time offers when they're available, it may be possible to get the bank to match a recent offer if you miss an opportunity. If you have signed up for a credit card within the past 90 days and notice the bonus has gone up, contact the credit card company and ask if they'll match the higher bonus. This doesn't always work, though.
Related: Best Rewards Credit Card Offers This Month
Can you get the same bonus twice?
It's also important to note that you might not be able to get the bonus on that card again — maybe never, or maybe not for a few years. Credit card issuers have different rules, but it's not uncommon to see phrasing like “this bonus isn't available to people who earned the bonus in the past 24 months.”
Even more restrictive, American Express has a “once in a lifetime” rule for each card, so you want to earn the highest bonus possible whenever you get one.
Related: Understanding Rewards Credit Card Application Rules and Restrictions
Not All Points Have the Same Value
Be careful when comparing offers that earn different types of rewards. Not all points are created equal. You may see an offer for 100,000 Hilton Honors Points and another offer for 60,000 Chase Ultimate Reward Points. Your mind tells you that 100,000 is more than 60,000, but the value tells a different story.
In recent redemptions, AwardWallet users have averaged 0.59¢ cents per Hilton Honors point while getting 1.95¢ cents per Chase Ultimate Rewards point. That's a big difference!
Points and miles are all worth different amounts, and these values can surely change over time. Cash back, on the other hand, is always worth its face value.
Final Thoughts
Building a strong portfolio of cards is a marathon, not a sprint. You'll earn far more points in the long run if you wait to take advantage of limited-time offers. But make sure to choose offers that fit your normal spending patterns. You won't earn that big bonus bonus if you don't meet the minimum spending requirements.
Remember that some types of points are worth more than others, so don't fall into the trap of picking the bonus with the biggest number before considering your future travel plans. For more help with building your strategy, check out our beginner's guide to award travel planning.
Related: How to Plan a Long-Term Credit Card Strategy
FAQ
When will my signup bonus post?
Each credit card issuer handles this a little differently. Typically, your bonus will post within a few weeks after the statement closes on the month you meet the spending requirement. Your statement closing date is the day your bank creates your bill for the previous month's charges. Any purchases made after this date will end up on the subsequent billing statement.
You might assume you'll see your bonus post soon after meeting the spending requirement, but you may end up waiting for a month or more if you cross the spending threshold at the beginning of a new statement cycle. You can get your bonus faster if you can time your spending to make sure to reach the requirement right before your statement closes.
Will opening cards hurt my credit score?
In general, opening a new card won't hurt your credit score in any significant way. In fact, there is a good chance that a new card will actually improve your score in the medium to long term. In the short term, however, a credit card application will result in a hard inquiry on your credit report which will ding your credit a few points. In most cases, you'll only see a hard inquiry with one of the three credit bureaus: Experian, Equifax, or Transunion, so two of the three should be unaffected. (Capital One is a notable exception; they post an inquiry to all three bureaus for new applications.)
Your credit is a huge asset in your quest for points and miles, so take a few minutes to familiarize yourself with the factors that impact your score, and especially how they are weighted. Here's the short version:
The most damaging thing to your credit score is missing payments. As long as you pay your card on time each month, you'll be in great shape. The second most important factor in your credit score is credit utilization. Credit utilization is the amount of available credit you are using. It's ideal to have a lot of available credit and use only a small percentage for purchases.
Can I get a signup bonus more than once?
The major banks have tightened their application rules in recent years to discourage folks from earning multiple bonuses for the same card. While this is still technically possible with some cards, it's generally not a good idea. If you're just starting out, there are plenty of great card products that can help fuel your travel adventures for years to come.
If you already have a portfolio of rewards cards, check out our guide to application rules and restrictions before applying for your next card. In some cases, holding one card may make you ineligible for another card.
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Preferred® Card (Rates & Fees), and Chase Sapphire Reserve® (Rates & Fees)
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
