Many rewards credit cards offer introductory bonuses as an opportunity for cardholders to benefit from signing up for and making a purchase with a new card. New cardmember bonus offers, often referred to as introductory, sign-up, or welcome bonus offers can come in the form of points, miles or cash back. To choose the best offer for you, you should compare rewards cards and consider your spending and rewards preferences.
What is a rewards credit card sign-up bonus?
A sign-up bonus is an offer to earn rewards for spending a certain amount of money on the card within the first few months after opening your account. Rewards cards typically offer benefits such as points, miles or cash back.
You have to earn the sign-up bonus
When signing up for a rewards credit card, remember that you will not automatically receive the welcome offer. A sign-up bonus is an offer to earn rewards if you meet the spending requirement, so you will have to spend at least the minimum amount required to qualify. If you do not meet the spending or time frame needed to earn the incentive, then you will not benefit from the bonus points, miles or cash back.
How new cardmember bonuses work
Once you sign up for a rewards card with a welcome bonus, you have a set amount of time to meet the purchase requirements and receive your rewards. A rewards credit card that earns cardholders points, for instance, may offer 40,000 bonus points if you make $3,000 in purchases on your card within the first 3 months after opening your account. A cash back card could have an introductory bonus of $200 after you spend $600 within the first few months.
Whether your rewards card offers points, miles or cash, you must spend at least the minimum amount required to qualify for the earnings detailed in the welcome offer.
Is a rewards card sign-up bonus worthwhile for you?
Getting a rewards credit card may be worth the spending required for the sign-up bonus and can allow you to optimize your spending if: