5 Reasons a Credit Card Company Won't Pay Out Your Sign-Up Bonus

Sign-up bonuses are a popular credit card perk because of the value they offer. It would normally take a long time to earn hundreds of dollars in cash back or 50,000 points. Many of the top sign-up bonuses are worth that much or more -- I've earned some worth over $1,000. And you can earn them in a matter of months.

The rules for sign-up bonuses vary. With most of them, the welcome offer consists of a bonus amount, a spend requirement, and a time limit. For example, earn 60,000 points for spending $4,000 on purchases in the first three months. It's normally a straightforward process.

However, there are several reasons why a credit card company could decide not to pay out your sign-up bonus. It's good to be aware of these so you don't miss out on a valuable bonus opportunity.

1. You didn't meet the spend requirement in time

Credit card companies are strict about sign-up bonus requirements. If you need to spend $4,000 in 90 days, and you do it in 92 days, you're probably not going to receive the bonus.

That's why meeting the spend requirement within the time limit is a must. Here are a few suggestions to help with that:

• Make sure you can reach the spend requirement before applying for the card. If it's much more than you usually spend, you're better off picking another card. Or, wait to apply until you have some big purchases to make.
• Keep track of your progress. Some card issuers include a bonus tracker in your online account. If yours doesn't, you can track this yourself by monitoring your credit card spending. You can also call or send a secure message to customer service at any time to check how much you've spent and the deadline to earn the sign-up bonus.
• Don't cut it too close. Try to meet the bonus requirements at least a week or two before the deadline. If you're still trying to spend enough at the last minute, there's the risk of transactions not posting to your account right away and not counting toward the requirements.

2. You aren't eligible for it

Sign-up bonuses have eligibility rules, which depend on the card issuer and the card. For example, if you've already had a credit card before, you may not be eligible for its sign-up bonus a second time. Or, there may be a waiting period. Some credit cards have terms and conditions stating that you're not eligible for the sign-up bonus if you already had that same card within the last 48 months.

If you've had a certain card before, or one from the same product line, check the bonus terms before you apply. Confirm that you're eligible first to avoid any disappointment later.

3. You expected the annual fee to count toward the spend requirement

Annual fees rarely count toward sign-up bonus requirements. The bonus terms normally specify that you must spend a minimum amount on purchases. Any type of credit card fee isn't a purchase.

It'd be nice if annual fees helped reach spend requirements, especially with those premium travel credit cards that cost $450 or more. Unfortunately, this isn't the case. If you want to double check, review the bonus terms for the card you're interested in.

4. You made ineligible purchases

Many credit card companies also have exclusions on certain types of purchases. These purchases don't count toward the spend requirement on a sign-up bonus.

In most cases, it's cash-like and cash equivalent purchases that are excluded, such as money orders and traveler's checks. Betting transactions, including lottery tickets and race track wagers, are also common exclusions. American Express cards are known for excluding gift card purchases.

If you use your card for normal, everyday spending, you probably won't have any problems. But if you think any of your spending may be ineligible, you can check exclusions in the bonus terms.

5. You returned purchases

When you return a purchase for a refund, it effectively reduces your credit card spending. That could be a problem if it pushes your spending below the threshold for your card's sign-up bonus.

Let's say you need to spend $3,000 in the first three months. You do that, but then you decide to return a $300 purchase. That would lower your spending to $2,700, meaning you'd need to spend more once again. And if it's already past the time limit to meet that spend requirement, then you're out of luck.

Sign-up bonuses are one of the easier ways to earn more credit card rewards. But you need to meet all the requirements, because card issuers typically don't offer any second chances. Play it safe by reviewing the bonus terms first, and then keeping track of your progress once you have the card.