What is a Credit Card Sign-up Bonus?
Credit card sign-up bonuses entice new members to apply. Also called welcome offers, they are sometimes too good to be true, and often tempting for most people. Once you sign-up for a specific credit card, you need to reach a certain spending amount. When the terms and conditions are met, you will get a corresponding reward. These bonuses come in different types and with different requirements.
Want to know more about the best credit card sign up bonus? Keep on reading and learn from the insights we’ll share.
What are the Different Types of Sign-up Bonuses?
Depending on your needs and lifestyle, credit card companies offer a wide array of sign-up bonuses, including those that are briefly mentioned below.
Air Miles: This is common for travel credit cards, especially those that are co-branded with certain airlines. Once a certain spending limit has been reached, you will be given a certain number of miles, which you can then convert into free flights.
Credit Card Points: Aside from miles, the sign-up bonus can also be in the form of points depending on the type of credit card that you have.
Cash Back: You will get a certain amount on your credit card after reaching the minimum spend requirements. This will automatically be deducted from your credit card statement
Cash Voucher: After meeting the minimum requirement, you can also receive cash vouchers from the credit card company.
How Much are You Required to Spend Before the Sign-up Bonus is Activated?
There is no definite answer to this question. The minimum spending requirement will vary from one bank to another. This will also depend on the type of credit card that you have. Basic cards have low spending requirements while it will be higher for premium credit cards. On average, this can range from $500 to $5,000.
Why Do Credit Card Companies Offer Sign-up Bonuses?
The most logical reason why credit card companies offer bonuses is that they want to entice people. This is their way of showing their customers that they are better when compared to others. These companies operate in a competitive industry, so they need to find a way to stand out and captivate the attention of the public.
Credit Cards with the Best Sign-up Bonus
If you are on the lookout for the best credit card bonus offers, we got you covered. Here are some of the best options that should be on your radar.
Chase Sapphire Preferred® Card
Sign-up Bonus: 60,000 bonus points
Rewards: 2x points on travel and dining, 25% travel redemption
Annual Fee: $95
APR: 17.49% to 24.49%
Balance Transfer Fee: N/A
Foreign Transaction Fee: Free
If you are a frequent traveler, it is hard to go wrong with this credit card. A huge 60,000 bonus point is waiting for new members. To qualify, you need to meet the minimum spend requirement of $4,000 on the first three months after the opening of your credit card. If you redeem the points through Chase Ultimate Rewards, this bonus will correspond to up to $750 in travel-related expenses.
It is also notable that you will earn two times points for travel and dining expenses. For all other purchases, you will earn 1 point for every dollar. You can use it even out of the country without worries that you will have to shoulder steep foreign transaction fees. Keep on swiping and you will not be charged extra for all your international expenses!
Wells Fargo Propel American Express® Card
Sign-up Bonus: 20,000 bonus points
Rewards: 3x points on restaurants, gas stations, rideshares, flights, car rentals, hotels, homestays, streaming services
Annual Fee: $0
APR: 0 for the first 12 months
Balance Transfer Fee: 0
Foreign Transaction Fee: Free
Annual fees can be a nightmare! With this credit card, that should not be the case as there is ZERO annual fees. This best credit card signup bonus no annual fee is also excellent because there are no foreign conversion fees, as well as balance transfer fees.
For the bonus, you will get 20,000 points after spending $1,000 in three months, which is a reasonable requirement compared to what is offered by other major credit cards. You can also enjoy accelerated rewards on various expenses, such as for those related to travel. As a bonus, this card also offers cellphone protection against theft.
Capital One® Venture® Rewards Credit Card
Sign-up Bonus: 50,000 bonus miles
Rewards: 2x miles per dollar
Annual Fee: 0 on first year, $95 after
APR: 17.24% to 24.49% depending on creditworthiness
Balance Transfer Fee: N/A
Foreign Transaction Fee: Free
Jet-setters will love this credit card because of its attractive bonus miles. Upon signing up, you will be eligible to enjoy 50,000 miles once you meet the spending requirement of $3,000 in the first three months. You can also earn two times rewards for every dollar. Plus, there is no need to pay the annual fee in the first year of using this card.
There are many other travel benefits that you can enjoy when you are using this card. For instance, you can receive a $100 credit on Global Entry. You can use your miles in more than 15 airlines and hotel loyalty programs. You can also gain access to VIP events as a part of the premium benefits that you can enjoy when you have this credit card.
Citi Rewards+℠ Card
Sign-up Bonus: 15,000 bonus points
Rewards: 2x points in supermarkets and gas stations,
Annual Fee: 0
APR: 0 in the first 15 months, 13.49% to 23.49% after
Balance Transfer Fee: $5 or 3% of the amount
Foreign Transaction Fee: 3%
One of the biggest selling points of this credit card is that it is the only one that rounds up to the nearest ten points the rewards that you can earn from every purchase. The best thing is that there is no cap! Upon signing up, you will be eligible for a 15,000 bonus, which you can claim after spending $1,000 in the first three months of using your credit card. You can use these points for redeeming a total value of $150. When you reach your first 100,000 Thank Points, you will get 10% of your total points.
Wells Fargo Cash Wise Visa® Card:
Sign-up Bonus: $150
Rewards: 1.5% cash rewards on qualified purchases
Annual Fee: 0
APR: 0 on the first 15 months, 13.99% to 25.99% after
Balance Transfer Fee: $5 or 3% of the amount
Foreign Transaction Fee:3%
This is a great option if you would like to earn cash rewards on every purchase you will make. While you get a 1.5% cash reward on most purchases, if you use qualified digital wallets, the reward will be 1.8%. It is also a good card because of the $150 bonus, which you can claim after spending $500 within the first three months of using your card. This is one of the lowest spending requirements for the cards that are listed in this article.
Ink Business Preferred® Credit Card
Sign-up Bonus: 100,000 bonus points
Rewards: 3x points on travel, shipping purchases, cable, internet, phone, advertising
Annual Fee: $95
APR: 17.49 to 22.49%
Balance Transfer Fee: $5 or 5% of the amount
Foreign Transaction Fee: Free
With 100,000 bonus points for new members, this is one of the most attractive rewards from all the cards that are included on our list. However, take note that the minimum spend requirement is $15,000 in the first three months, which is high. You will get three points for every $1 you will spend on travel and internet services, among other categories. Plus, you will earn 25% more in your travel redemptions.
The Platinum Card® from American Express
Sign-up Bonus: 60,000 Membership Rewards points
Rewards: 5x Membership Rewards Points
Annual Fee: $550
APR: 25.24%
Balance Transfer Fee: 9.9%
Foreign Transaction Fee: Zero
The annual fee of this credit card is frustratingly high, which can discourage many of you. Nonetheless, you should look at all the benefits to decide if it is worth the steep annual fee. You will get a sign-up bonus of 60,000 points after spending $5,000 in the first three months.
You will also be eligible for a $200 airline fee credit every calendar year. For Global Entry, you will get $100 statement credit and $85 for TSA Precheck. You will also be eligible for complimentary benefits of up to $550 at over a thousand hotels and resorts in the world.
United℠ Explorer Card
Sign-up Bonus: 60,000 bonus points
Rewards: 2 miles per $1 on qualified purchases
Annual Fee: 0, $95 after the first year
APR: 17.99 to 24.99 %
Balance Transfer Fee: $5 or 5% of the amount
Foreign Transaction Fee: Free
If United is your preferred airline, then you have one good reason to choose this for the best signup bonus credit card. After spending $3,000 in the first three months, you will get 60,000 bonus miles. The card also entitles the member and a companion to a free first-checked bag with a calculated value of $30. You will also earn 2 miles for every dollar you spend on United purchases, as well as in qualified restaurants and hotels.
Discover It® Cash Back
Sign-up Bonus: Match all cashbacks earned throughout the year
Rewards: 5% cashback
Annual Fee: 0
APR: 0 on the first 14 months, 13.49 to 24.49% after
Balance Transfer Fee: 3%
Foreign Transaction Fee: Free
The sign-up bonus of this credit card is unique compared to those that are mentioned above. The company will match all the cash back that you have earned in the first year of your relationship. There is no limit, so you can earn a lot!
There is also 5% cash back in qualified purchases, which will rotate throughout the year depending on their current offerings. Eligible purchases include gas stations, grocery stores, and restaurants. For all other purchases that do not match the pre-defined criteria, you will receive a 1% cashback.
How We Came up with our List of Best Sign-up Bonus Credit Cards
To identify the best signup bonus credit card, we have evaluated hundreds of credit cards in the United States. Priority is given to those from big banks since our goal is to list down the most reputable credit cards currently available.
Aside from the bank’s reputation, we also looked at client experiences to ensure your highest level of satisfaction. Aside from the bonus type and amount, we also considered the annual fee, interest rates, and balance transfer fees, among other things. While the things mentioned above are accurate as of the time of writing this guide, take note that there can be changes anytime.
How to Calculate the Value of a Sign-up Bonus
As you decide on the best signup bonus credit card, one of the first things that you need to do is to calculate the value of the bonus. One way to do this is through the absolute value method. This means that you will calculate the total value of the sign-up bonus in dollars and see if it is worth your money.
The next method is the rebate percentage method. With this, you will be required to identify the total value of the credit card in dollars. Then you will divide this by the minimum spending requirement to unlock the bonus. For instance, if the total bonus is $500 and the spend requirement is $3,000, this means that the value is .17. Rank the credit cards based on this formula and find one that yields the highest value.
FAQs on Sign-up Bonus Credit Cards
Before we conclude our guide on the best credit card signup bonus offer, allow us to answer a few of the questions you might have.
Q: What credit score do I need for a sign-up bonus?
A: Good to excellent credit is required by most banks to qualify for a sign-up bonus. The requirements will vary from one bank to another. Aim for a credit score of at least 720 to increase your chances of approval.
Q: Should I pay an annual fee for a credit card with a big sign-up bonus?
A: If the bonus is worth it, don’t hesitate to pay the annual fee. Calculate the value of the bonus and other rewards that come with the card, such as rebates and discounts.
Final Verdict
The best credit card bonus offers can open a world of possibilities. From cash rebates to air miles, sign-up bonuses can exist in many forms. They can be tempting, but before you give it a go, take the time to examine the value of the bonus. More importantly, evaluate several credit cards to find one that will work best for your needs!
