Hacks to Make the Most of Credit Cards with Sign-up Bonuses

“Apply for our credit card, and get 50,000 miles as a sign-up bonus!” More than often, you might have come across this line, enticing you to apply for a new credit card. Read the key term “Sign-up bonus” here. No matter how many credit cards you own today, there is every probability that you are still confused about how sign-up bonuses actually work.

If you think you are a smart purchaser, meeting just “minimum spend” criteria to get these rewards, you can still be confused. Here’s a write-up just for you! In this piece, we help you dig into the science behind Sign-up bonuses and how to make the most of these rewards.

Sign-up Bonus Simplified! Banks provide credit card welcome bonuses as incentives to attract new customers. Typically, these bonuses involve earning extra points or cashback by reaching a specified spending threshold within a limited timeframe. Occasionally, welcome bonuses may also offer added benefits such as reduced annual fees or merchandise.  It's important to carefully review the terms and eligibility criteria before applying for a credit card, especially if you wish to make the most of welcome bonus opportunities. Familiarise yourself with the specific type of welcome bonus, the actions required to qualify for it, and the eligibility conditions.

Checklist to Be Eligible for Sign-up Bonuses

Understanding eligibility for welcome bonuses, especially for frequent credit card applicants, can be confusing. Different banks have varying rules, specific to the issuing bank, rewards program, or credit card type.

Eligibility criteria can get complex, but if you have few credit cards and a high credit Score, you're likely to qualify for most welcome bonuses. These eligibility restrictions are typically in place to deter constant credit card applications, known as churning, to earn bonuses.

Straightforward Ways to Earn Sign-up Bonuses

The thing with sign-up bonuses is that you do not just get them when you meet the eligibility criteria, you have to earn them. The earning process usually involves making minimum purchases using the eligible credit card. Sounds complicated right? Here are some cheat codes to earn a sign-up bonus easily. 

Earn Welcome Bonus upon Credit Card Application Approval or After Making the First Purchase

This is the most effortless way to earn a sign-up bonus. Most credit cards provide a welcome bonus when you open an account with them or make the first purchase using the credit card or get your credit card application approved. 

Make Purchases from the Selected Merchants

Many retailer credit cards with joint branding typically make it compulsory to make a purchase at specific merchants to qualify for a portion of the signup bonus. Likewise, in-store credit card promotions providing purchase discounts often require you to put the transaction on your newly acquired credit card account.

Meet the “Minimum Spend” Criteria within the Set Timeframe

To get bigger welcome bonuses, you would need to spend a certain amount on your card within a specific time. The spending amount is usually clear, but watch out for different time measurements like 90 days, three months, or three statement cycles. Also, note that the clock might start from the application date, not the approval or card opening date. Make sure you know the deadlines for meeting spending requirements.

Keep an Eye on Ongoing Rewards

When considering a credit card with a welcome offer featuring bonus rewards for spending, ensure that your spending habits align with the ongoing rewards structure before applying.

Sign-up Bonuses are Cool But Do Read Between the Lines

Digging into the perks of welcome bonuses is a win-win game for both banks and consumers! For banks, it's the ultimate lure to boost credit card sign-ups, while consumers get to tap into a treasure trove directly from the bank's marketing budget. If you're on the hunt for a new credit card, you may not want to miss out on the welcome bonus excitement either.

• Dive deep into the bonus details. Welcome bonuses come in various shapes and sizes, so before committing to a new credit card, ensure you know exactly what's in store. If it's points or miles, map out how you'll make the most of them.
• Strategise to snag the offer. Whether it's hitting a spending target in three months or making a purchase from a specific merchant within 90 days, plan your moves to secure that welcome bonus before you sign on the dotted line.
• Check the fine print. Make sure you're eligible for the welcome bonus and grasp the qualifying criteria and eligible purchases by reading through the terms.
• Explore your options. With many banks rolling out enticing welcome bonuses, these can be the game-changer for a credit card's value in the first year. Shop around to uncover the best deal for you!

Make the Most of Credit Cards with Sign-up Bonuses Like a Pro

When considering your next credit card, it's crucial to time your sign-up around upcoming expenses. If you struggle to meet the minimum spending requirements, there are ways to navigate around it.

In your daily transactions, even small purchases can accumulate over time. Focus on a strategy that involves removing all other cards from your wallet while striving to reach the minimum spend threshold.

To maximise a credit card's sign-up bonus, explore 'manufactured spending.' This technique involves optimising credit card spends for rewards without significantly impacting your bank account. It's a valuable approach for meeting minimum spend requirements or accumulating frequent flyer miles with an airline or hotel.

When enrolling for a new credit card, the initial year's most valuable perk is usually the sign-up bonus. Therefore, it's crucial to fulfil the specified spending requirement within the designated time frame. However, it's equally important to avoid making unnecessary purchases solely to meet the bonus criteria.

Sign-up bonuses may encourage overspending by motivating you to reach minimum spending thresholds swiftly. If carrying a balance is necessary to attain the bonus, ensure you can promptly pay it off to make the sign-up bonus truly beneficial.

Policybazaar UAE – Helping you navigate the wilderness of the insurance world!

Writtent by: Tanvi Pathak