January 23, 2024 |4 min read
Signing up for a new credit card can be a truly rewarding experience—especially when the credit card offers a sign-up bonus.
But what exactly is a credit card sign-up bonus? And how does it work?
Read on to learn all about credit card sign-up bonuses.
Key takeaways
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A credit card sign-up bonus offers a one-time lump sum of rewards points, miles or cash back.
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Only new cardholders—not existing cardholders—are usually eligible for credit card sign-up bonuses.
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Qualifying for a credit card sign-up bonus normally requires making a minimum amount of purchases on a card within a certain window of time.
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Get startedWhat exactly is a credit card sign-up bonus?
A credit card sign-up bonus offers a reward to a new cardholder as long as the cardholder meets certain requirements.
How to earn your sign-up bonus on a new card
To earn a credit card sign-up bonus, a cardholder typically must spend a certain amount on the card within a certain period of time. Bonus requirements vary depending on the card and the card issuer.
Keep in mind that not all card issuers offer credit card sign-up bonuses. And if an issuer does offer these bonuses, they might only be for certain cards.
The types of credit card sign-up bonuses you can expect
Credit card sign-up bonuses generally come in three forms: cash back, miles and rewards points.
Cash back
Some credit card issuers provide cash back bonuses—typically as statement credits—for new cardholders.
For example, the Capital One Quicksilver card offers a one-time $200 cash bonus to a new cardholder who makes $500 in purchases within three months of the account being opened. Beyond that, the holder of a Quicksilver card can collect unlimited 1.5% cash back on every purchase.
Miles
Instead of cash back, a credit card sign-up bonus might come in the form of miles. This is often the case with travel rewards credit cards.
For example, the Capital One Venture card gives a new cardholder 75,000 bonus miles once they spend $4,000 on purchases within the first three months of the account being open. The same mileage bonus and bonus requirements apply to the Capital One Venture X card too.
Rewards points
A third form for a credit card sign-up bonus is rewards points.
A credit card might, for instance, give a sign-up bonus of 80,000 points after a cardholder makes $8,000 in purchases within the first six months of the account being open.
Once those bonus points are deposited into the account, a cardholder may be able to redeem them for things like travel purchases, online shopping purchases, gift cards and statement credits.
How to choose a card with the best credit card sign-up bonus
To make the most of a bonus opportunity, it pays to choose the right card.
Choose a card that offers the type of rewards you want
When someone is looking for a new card, they should select a rewards card that provides the type of rewards they want rather than selecting a card based only on what seems like an attractive bonus offer.
For instance, it makes sense for someone to pick a card that provides a sign-up bonus of 75,000 airline miles if they’re a frequent flier. But if they rarely fly, airline miles might go to waste. For someone who doesn’t fly frequently, a card providing a cash back sign-up bonus might be more beneficial.
Pay attention to any limits on the rewards you earn
Some credit cards cap the number of rewards someone can receive, whether it’s cash back, miles or points. So, once a new cardholder has racked up a sign-up bonus, they may find the limits for ongoing rewards are too restrictive. Therefore, it might be wise to explore a card that offers unlimited rewards.
With Capital One, there’s no limit to how much you can earn. And your rewards won’t expire for the life of the account.
Credit card sign-up bonuses in a nutshell
Credit card sign-up bonuses can be lucrative, offering a one-time lump sum of cash back, miles or rewards points. These bonuses generally are worth hundreds of dollars. In exchange for a sign-up bonus, a cardholder typically must put a set amount of purchases on their new card within a set period of time.
Looking for a credit card? Compare your options online to find out which Capital One credit card might be right for you.
