How do credit card sign-up bonuses work?

A credit card sign-up bonus is a reward you receive for opening the card and completing any bonus requirements. With most bonuses, you must spend a minimum amount within a time limit. When you do, you'll receive a lump sum of cash back or travel points, depending on the type of credit card.

What should I look for in a credit card with a sign-up bonus?

The most important things to look for in a sign-up bonus credit card are the bonus amount and the requirements to earn the bonus. Choose a card with requirements you're confident you can meet and the best bonus amount you can find.

How do I qualify for a credit card sign-up bonus?

To qualify for a credit card sign-up bonus, you must get approved for the card and meet all the terms of the bonus. Sign-up bonus credit cards are usually aimed at consumers with good credit, which means you should have a FICO® Score of 670 or higher.

Best Sign-Up Bonus Credit Cards for March 2021

A credit card sign-up bonus is one of the best deals you can get from a card company. You're basically getting paid -- in cash back or travel rewards -- to open a new credit card and meet any bonus requirements. And since credit card bonuses are so popular, there are plenty of opportunities to cash in.

The best credit card sign-up bonus has competitive rewards and reasonable requirements to earn the bonus. While it's natural to look for the biggest bonus amount first, the credit card bonus offer that's right for you will also have requirements you can easily handle, and earn the type of rewards you want. On our list of the best sign-up bonus credit cards, you'll find a variety of options with one thing in common -- they're the most lucrative bonuses on the market.

The Ascent's best credit card sign-up bonus offers:

Travel and points transfers: Chase Sapphire Preferred® Card
Bonus cash rewards and no annual fee: Discover it® Cash Back
For premium travel: Chase Sapphire Reserve®
Unlimited travel rewards: Bank of America® Travel Rewards credit card
Flexible cash rewards program: Chase Freedom Unlimited®
Cash rewards program: Bank of America® Cash Rewards credit card
Hotels: IHG® Rewards Club Premier Credit Card
Unlimited travel miles: Capital One® Venture® Rewards Credit Card
Travel and dining: Wells Fargo Propel American Express® card
U.S. supermarkets: Blue Cash Preferred® Card from American Express
One-card wallet: Chase Freedom Flex℠

Ratings Methodology

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If you want a fast start towards earning rewards, you can't do better than a sign-up bonus credit card. The best credit card bonus offers are worth hundreds of dollars or more, and getting one is as simple as opening a credit card account and making purchases.

There are some risks to credit cards with a sign-up bonus, though. If you pick a credit card bonus with a high spending minimum, you may have trouble making enough purchases. You might miss out by not spending enough, or you could end up in debt from overspending. To avoid issues, you'll need to find the best sign-up bonus credit card for you.

Credit card bonus offers are extra rewards for opening a new credit card and completing the card's bonus requirements. Most of the best credit card bonuses require you to spend a minimum amount with the card within a set timeframe.

What is an introductory period or an intro offer?

Credit card intro offers last for a certain amount of time, and the length of the offer is called the introductory period. When a credit card sign-up bonus offers $500 for spending $3,000 in three months, the intro offer is the $500, and the introductory period is three months.

A credit card bonus is simple enough to get. Here's how to get new credit card bonus offers:

Make sure you're eligible. The best credit card sign-up bonuses often have restrictions on eligibility. For example, you may not qualify for a credit card welcome bonus if you've already gotten a bonus on the same card -- or a card in the same product line -- within two years. Be sure to check first, because it's frustrating to apply for the best sign-up bonus credit card, only to discover that you aren't eligible for the intro offer.
Review the bonus rules. See what you need to do to earn the credit card's sign-up bonus. Although most welcome bonus credit cards require you to spend a minimum on purchases, this isn't always the case. Some credit card bonuses only require a single purchase, or are issued as soon as you're approved for the card. And a few of the best credit card intro offers match the rewards you earn over a specific timeframe, such as your first year using the card.
Complete the bonus requirements. When you have the credit card, it's time to do what's required to earn the bonus. Keep in mind that for any credit cards with an intro bonus, you can contact the card issuer to check your progress. This can help ensure you're on track or confirm you've completed the requirements.

After you've finished all the bonus requirements, the card issuer will send you the bonus. This usually isn't instantaneous, but most credit card sign-up bonuses process within one to two billing cycles.

What credit score do you need for a sign-up bonus?

You generally need a FICO® Score of 670 or above to qualify for a credit card sign-up bonus. The best welcome bonus credit cards are aimed at consumers with good to excellent credit scores. There are some exceptions, and it's possible to get approved for these top credit cards even without good credit, but it's more difficult.

Here’s what you should look for:

Valuable rewards. Whenever you shop for rewards credit cards, it's important that you pick a card with rewards you like. A bonus doesn't do you much good if it's offering points with a hotel you never plan to visit. If you're looking at travel rewards credit cards or store credit cards, make sure you will use the rewards they offer. Cash bonus credit cards are the safest option, since everyone can use more cash.
Requirements you can meet. It's easy to get mesmerized by the best credit card bonus deals. Remember that the bonus requirements are more important than the bonus amount -- there's no point getting a card with a huge bonus and a spending minimum you could never reach with your normal expenses. The best sign-on bonus credit card for you will be one with requirements that are within your reach.
A competitive bonus amount. Once you've found the best credit cards with sign-up bonus requirements that you can handle, you can compare what each bonus offers. Since a credit card bonus is the fastest way to earn rewards, it makes sense to get the biggest one that works for your spending habits.

What types of credit card bonuses are offered?

Credit card bonuses come in three variations. Here's how each type works:

Points or miles

You receive your bonus as credit card points you can redeem via travel purchases. These points are sometimes referred to as miles, especially with airline credit cards, but this is simply a branding decision made by the card issuer. Travel rewards cards often have the largest bonus amounts, making them some of the best bonus credit cards.

Cash back

You receive your bonus as cash back. Redemption methods vary depending on the card, but most cash back cards let you redeem your cash back as a statement credit towards your credit card bill, in a check, or possibly as a direct deposit to a bank account. A big perk of cash bonus credit cards is that you can easily use your bonus, and there's no learning curve like there can be with redeeming points.

Discount

You receive your bonus as a discount on a purchase. This type of bonus is most common with store credit cards, which may offer 20% off or more if you apply and get approved for a credit card at checkout. Although a discount bonus can be tempting because it offers instant savings, it usually doesn't get you nearly as much value as the credit cards with the best sign-up bonus offers.

The type of bonus you should pick depends on what you want in a credit card. For most consumers, the best credit card welcome bonus will be in points or cash back.

Can you open multiple sign-up bonus credit cards at the same time?

You can open multiple sign-up bonus credit cards at the same time, and this can be a good way to maximize your rewards. However, you should be careful about the number of credit cards you get and their bonus requirements. When you have multiple new credit cards, there's a greater risk of missing bonus requirements or making unnecessary purchases to reach spending minimums.

Here's a quick, three-step process you can follow to choose the best sign-up bonus credit card:

1) Decide what type of credit card bonus you want. The most effective way to narrow down the best credit cards with sign-up bonus offers is by the type. Once you choose between travel points or cash back, you'll just about cut your list in half. As mentioned earlier, discount bonus offers rarely offer as much value, so avoid these unless you're set on a store credit card.

2) Check out sign-up bonus details with different cards. The details you're looking for are each credit card's bonus amount and its requirements to earn that bonus. Since you're looking for the credit card with the best sign-up bonus for you, rule out any with spending minimums you can't reach.

3) Pick the best intro offer credit card for your financial needs. This will likely be the card offering the largest bonus amount with a spending minimum you can handle. But if you plan to go for multiple bonuses, then the best intro bonus credit card may be one with a lower spending minimum. This way, you can reach the requirements on two or more bonuses simultaneously.

What other credit card offers should I consider?

Rewards

This is a credit card that earns rewards on each purchase, typically in the form of cash back or travel points. There's quite a bit of overlap between the best credit cards with bonus offers and rewards credit cards, meaning you can often get a card that has both features. Not every rewards card has a sign-up bonus, though, and sometimes a high-quality rewards card is still worth considering even without that benefit.

One-card wallet

A style of sign-up bonus in which the card issuer matches all the rewards you earn over a set timeframe (often a year) using the card. It gets the name "one-card wallet" because it encourages you to use one credit card for all your purchases. This is the standard bonus offer with Discover credit cards. If you plan to stick with one card, then a rewards match is probably the best credit card sign-up bonus of 2020 for you.

Balance transfer

An intro offer for a low APR on balances you transfer from other credit cards. The best balance transfer credit cards typically have 0% intro APRs, and these can last for over a year. If you have credit card debt, this can save you a lot of money on interest.

FAQs

A credit card sign-up bonus is a reward you receive for opening the card and completing any bonus requirements. With most bonuses, you must spend a minimum amount within a time limit. When you do, you'll receive a lump sum of cash back or travel points, depending on the type of credit card.
The most important things to look for in a sign-up bonus credit card are the bonus amount and the requirements to earn the bonus. Choose a card with requirements you're confident you can meet and the best bonus amount you can find.
To qualify for a credit card sign-up bonus, you must get approved for the card and meet all the terms of the bonus. Sign-up bonus credit cards are usually aimed at consumers with good credit, which means you should have a FICO® Score of 670 or higher.

The Picks
Card	Rating	Great For
Chase Sapphire Preferred® Card	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Travel and points transfers
Discover it® Cash Back	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Bonus cash rewards and no annual fee
Chase Sapphire Reserve®	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: For premium travel
Bank of America® Travel Rewards credit card	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Unlimited travel rewards
Chase Freedom Unlimited®	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Flexible cash rewards program
Bank of America® Cash Rewards credit card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Cash rewards program
IHG® Rewards Club Premier Credit Card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Hotels
Capital One® Venture® Rewards Credit Card	Rating image, 4.5 out of 5 stars. 4.5 stars	Great For: Unlimited travel miles
Wells Fargo Propel American Express® card	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: Travel and dining
Blue Cash Preferred® Card from American Express	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: U.S. supermarkets
Chase Freedom Flex℠	Rating image, 5.0 out of 5 stars. 5.0 stars	Great For: One-card wallet