Credit Card Bonuses 101: How to Earn Sign-Up Rewards
February 23, 2026
Credit card sign-up bonuses are one of the most lucrative ways to earn rewards quickly. A single welcome offer can be worth $500 to $1,000 or more in cash back, travel points, or statement credits. But earning those bonuses requires understanding how minimum spending works and choosing the right card for your situation.
What Is a Credit Card Sign-Up Bonus?
A sign-up bonus (also called a welcome offer) is a one-time reward that credit card issuers offer to new cardholders. You earn it by spending a required amount within a set timeframe — typically $3,000 to $5,000 within the first 3 months of opening the card. Once you hit that threshold, the bonus posts to your account.
Unlike bank bonuses where you just need to deposit money, credit card bonuses require actual spending. That's an important distinction — you need to have real expenses to put on the card.
Types of Credit Card Bonuses
- •Cash back — The simplest type. You get a flat dollar amount deposited as a statement credit or check. Common amounts range from $150 to $500.
- •Points — Cards in travel ecosystems (like Chase Ultimate Rewards or Amex Membership Rewards) award bonus points that can be redeemed for travel, transferred to airlines, or converted to cash.
- •Miles — Airline-specific cards offer bonus miles that can be used for flights. These can be worth significantly more than their cash value if redeemed for premium travel.
- •Statement credits — Some cards offer bonus value in the form of statement credits toward specific categories like travel, dining, or streaming services.
How to Meet the Minimum Spend
The minimum spending requirement is the biggest hurdle for most people. Here are smart strategies to meet it without overspending:
- •Time it with big purchases — Planning to buy furniture, electronics, or pay a large bill? Open the card right before to apply that spending toward the bonus.
- •Shift your regular expenses — Put groceries, gas, utilities, subscriptions, and dining on the new card instead of your usual payment method.
- •Prepay bills — Some insurance companies, utilities, and services let you prepay several months at once. This is legitimate spending that counts toward the bonus.
- •Pay taxes with a credit card — The IRS accepts credit card payments for a small processing fee (about 1.85%). If you owe taxes, this can be worth it to meet a large spending requirement.
- •Use the card for group expenses — Offer to pay for group dinners, trips, or shared purchases and have friends pay you back.
⚠️ Never buy things you don't need just to meet a spending requirement. If you can't meet the minimum spend through your normal expenses and planned purchases, choose a card with a lower requirement.
What Counts Toward Minimum Spend?
- •Regular purchases (groceries, gas, dining, shopping) — Yes, always counts.
- •Recurring bills (utilities, insurance, subscriptions) — Yes, these count.
- •Balance transfers — No, these never count toward minimum spend.
- •Cash advances — No, and they come with high fees and interest.
- •Annual fees — Usually no, though some issuers count it.
- •Returned purchases — Refunds reduce your qualifying spend, so avoid returns during the bonus period.
Understanding Annual Fees
Many cards with the best sign-up bonuses charge annual fees, typically $95 to $550. The key is to calculate whether the bonus value exceeds the annual fee. A card with a $95 fee and a $750 bonus is a net gain of $655. Many premium cards also waive the annual fee for the first year.
💡 If a card charges an annual fee, you can often call to downgrade to a no-fee version after the first year. This keeps your credit line and account history intact while eliminating the ongoing cost.
Will Applying Hurt My Credit Score?
Applying for a new credit card results in a hard inquiry on your credit report, which temporarily lowers your score by about 5-10 points. However, the new credit line also improves your overall credit utilization ratio, which typically offsets the inquiry within a few months. Most people see their score recover — and often improve — within 3-6 months of opening a new card.
Issuer-Specific Rules to Know
- •Chase 5/24 Rule — Chase will deny most applications if you've opened 5 or more credit cards (from any issuer) in the past 24 months. Plan your Chase cards first.
- •Amex Once-Per-Lifetime — American Express generally only lets you earn each card's welcome bonus once. Make sure you haven't had the card before.
- •Citi 48-Month Rule — Citi requires 48 months between earning the same card's bonus.
- •Capital One Limits — Capital One typically limits you to two of their credit cards at a time.
Getting Started
Start with one card that matches your spending habits. If you spend heavily on dining, choose a card that rewards restaurants. If you travel frequently, a travel card with a transferable points bonus makes sense. The best first bonus is one you can earn without changing your lifestyle. Browse our current credit card offers to find one that fits.