Credit card sign-up bonuses are one of the best reasons to apply for a new credit card. Many cards offer bonus points or miles for signing up and spending a certain amount of money in the first few months. These bonuses can be worth hundreds or even thousands of dollars, making them a great choice for value-seekers. Keep reading to learn more about the benefits of applying for a credit card with a sign-up bonus.
How Do I Find The Best Credit Card Sign-Up Bonuses?
Sign-up bonuses offer cardholders an opportunity to earn a large amount of rewards or travel points very quickly. Cards with the best sign up bonuses include the Capital One Venture Rewards credit cards, the Chase Sapphire Preferred and Chase Sapphire Reserve cards, the Citi Premier card, or Citi AAdvantage Platinum Select World Elite MasterCard, and the Platinum Card from American Express.
Another reason to pursue a new card is that it can help you establish or build your credit history. Having a strong credit history is important because it helps you qualify for mortgages, car loans, and other types of financing in the future. Sign-up bonuses also typically come with generous perks such as complimentary airport lounge access and statement credits.
it card bonuses from different issuers. Be sure to read the terms and conditions carefully so that you understand what you’re getting into. And lastly, make sure that you can afford to meet the spending requirement within the designated time frame without putting your finances at risk.
Don’t Apply For Too Many Cards At Once.
Credit card companies are always looking for new customers, and they often use welcome bonuses as an incentive to get people to apply. The bonuses can be quite lucrative, but there’s a catch: You have to meet a certain spending requirement within a set time frame to qualify—usually within a few months of your account opening.
If you’re not careful, you could wind up applying for too many cards at once and hurt your credit score in the process. This is because each time you apply for a new credit card, the issuer runs a hard inquiry on your credit report. Too many inquiries in a short period can ding your score and make it harder to get approved for future credit cards and other loans.
So before you start applying for cards left and right, be sure to do your research and make sure you can meet the spending requirement without putting yourself into debt. Also, try not to cancel any of your existing cards until you’ve been approved for all of the new cards—this will help keep your utilization rate low and maintain or improve your credit score.
Keep In Mind That Not All Bonuses Are Created Equal.
Most major banks and airlines offer sign-up bonuses, so there are plenty of options to choose from. Be sure to compare the membership rewards structures and incentives of different cards before enrollment, as not all bonuses are created equal. Some cards have higher annual fees than others, for example, so make sure you’re getting enough value back from the credit card bonus itself to offset the card’s annual fees.
Some cards offer a cash bonus or extra points for new cardholders at sign-up, while others offer bonus points or miles that can be redeemed for travel. The value of these bonus offers varies based on how you use them.
For example, if you redeem your bonus points for travel rewards, they might be worth more than if you redeem them for cash back. That’s because travel purchases often cost more than cash-back rewards. So, if you’re planning on using your credit card for everyday expenses and then redeeming your travel points, a card with a sign-up bonus can be a great deal.