Some credit cards offer sign-up bonuses to new cardholders who meet eligibility criteria. Typically, you’ll need to make a certain number of purchases—measured in either number of transactions or dollar amount—in order to earn your welcome offer. There may be other fine print as well, such as not already holding a similar credit card from the same issuer or for making a purchase from a specific merchant or purchase category.
These sign-up bonuses can be worth hundreds of dollars, depending on the card. They are a tool for card issuers to attract new customers and because of this, the offer is usually available a maximum of one time per person per card.
Welcome offers vary over time, so the offer available today may be different from what was offered on the same card in the past (or what may be available in the future).
How Can I Sign Up for a Credit Card?
Signing up for a credit card can be a great way to start building your credit score, but isn’t a decision to be taken lightly. The first step is to do some research and find a credit card that best fits your needs. You can compare benefits, rewards, interest rates and fees among cards using our lists, like the one above.
Once you’ve decided on the card you want, you can apply online or in person at the credit card issuer. To apply, you’ll need to provide some personal information, such as your Social Security number and income. You may also be asked to list any debts you have. The credit card issuer will then review your application and decide if you qualify. If you do, you’ll receive your card in 10 to 14 days or less and can typically start using it immediately after activation.
Should You Apply for a Credit Card With a Large Sign-Up Bonus?
Just as there’s no one right credit card for everyone, there’s also no sign-up bonus so perfect you must apply. Although a juicy welcome offer can be tempting, consider the attributes of the card beyond any initial points bonanza. Applying for a new card can temporarily ding your credit score so you want to be sure that any new card you open makes sense for your particular spending patterns and financial needs.
Pro Tip
Don’t spend beyond your means to earn a welcome bonus. Crunch the numbers to ensure the spending requirements attached to a welcome bonus are achievable with your current spending patterns. Overspending to reach a welcome bonus could risk a need to carry a balance and begin incurring interest.
Should You Keep the Card After Earning the Bonus?
Some issuers state in the card’s terms and conditions that they will claw back any welcome offers if you cancel your card within a certain time period. If you are considering canceling a card, be aware of how long the issuer stipulates you must keep your account open to keep your bonus.
If you find that a particular card doesn’t fit your spending patterns or if your needs have changed, consider other options before closing a credit card account. Some card issuers will allow you to transfer your available credit limit to another card held by that bank. If the card has no annual fee, it may make sense to leave the card open, but use another card with a better reward structure. Remember closing an account can hurt your credit.
If you show a pattern of opening and closing credit card accounts just to earn a welcome bonus—known as churning—issuers may consider you a risk and deem you ineligible for new accounts. Some issuers won’t give you a sign-up bonus on a card if you have carried it before, opened or closed the same card product within a certain period of time or opened any new accounts with that issuer or other issuers recently.