What is a bonus offer and can I use it?
What is the actual bonus? Do you earn miles, cashback or bonus points? Make sure you like the offer.
For example, if you’re looking at a card that offers a large travel reward package, but you’re a bit of a couch potato, that card might not work for you.
What fees will you need to pay?
When calculating, do not forget to include all the fees that come with the credit card. For example, if you earn a $ 150 cash bonus but have to pay an annual contribution of $ 99, then you really only earn $ 51 in cash bonus. This seriously lowers the value of the sign up bonus.
Before registering, look out for fees such as annual, overseas transactions and late payment fees. It’s also a good idea to revise the proposed annual interest rate. If your interest payments are much higher than other cards, the sign up bonus might not be worth your time.
However, in Money Under 30 we always recommend paying off the balance in full and on time, and if you follow our advice responsibly, then even a high annual interest rate will not matter much, because you will never pay it!
What categories are included in your expenses?
This is a common mistake made by credit card holders who do not realize that they are spending money outside of an ever-changing category. You can earn a whopping 100,000 bonus points as a sign up bonus for your Chase Sapphire Preferred® card after spending $ 4,000 in the first three months. You will also earn 2x points for your expenses. However, this 2x points offer only applies to travel and restaurant purchases. Unless you are eating or traveling, you may not be able to get the most out of this card.
More importantly, many cards have specific areas or categories in which your spending will be considered when determining your spending requirements. If you do not spend in these categories, your purchases will not contribute to the minimum spending requirement and you will not reach your limit to activate your sign up bonus.
This is possibly the biggest problem people face when signing up for a bonus card, so pay attention to the spending requirements.
Sign Up Bonus Key Features
Now that you know how lucrative bonus credit cards when signing up can be, it’s time to learn how to determine which ones are right for your application.
There are hundreds of credit cards out there and they all claim to offer you the best deal. So how do you know what to watch out for?
Here are the most important features when buying the best bonus credit cards upon signup:
Registration bonus
Obviously, this is the most important aspect of a bonus card when registering. Without a good signup offer, it might be a lucrative card, but it won’t fall into this category.
Cash rewards
This is probably the most compelling benefit for cardholders. You just can’t beat getting cashback. With this bonus, you can use your rewards however you want and you get cash back using your card to cover the expenses you have, so it really feels like free money.
Travel rewards
Often, travel credit cards offer you a sign up bonus in the form of travel rewards. For example, the Capital One Venture Rewards credit card offers a whopping 60,000 bonus miles if you spend $ 3,000 on purchases in the first three months of opening an account.
If you travel a lot, this might be a great deal. If you don’t travel much, you’re probably better off looking for a different type of credit card first, as these cards are for those who spend on travel.
However, if you are looking for a free flight or an upgrade ticket, this kind of check-in / tourist credit card bonus can really come in handy.
Other travel perks
As mentioned, great travel credit cards bring great travel deals. For those who travel frequently, these types of rewards are a godsend, and the sign up bonus credit card that bundles travel rewards into its package is truly top notch.
Some of the best travel rewards include no foreign transaction fees, additional earnings on travel purchases, hotel, flight or car rental upgrades, car and baggage insurance, emergency assistance, trip interruption or cancellation insurance, VIP lounge access at the airport and much more. …
Annual interest rate
How much interest you pay on your credit card balance is an important factor for most people. The high annual interest rate can completely void any savings or bonuses you receive, even a solid signup bonus.
Of course, you can completely negate this factor by paying off your balance in full each month. This is the most responsible way to spend money, but if it is not financially feasible for you, consider only credit cards with a competitive annual interest rate.
Annual fees
The annual fees in this category vary greatly. You can find cards with pay ranging from $ 0 to $ 450. Sometimes the annual fee is a reflection of what you get on your credit card, but not always.
More details: Is it ever worth paying an annual credit card commission?
Should you get a bonus credit card for signing up?
The best credit cards with a sign up bonus truly are the cream of the crop in the credit card industry. The correct cards offer the most benefits, the largest bonuses, and reasonable and acceptable terms.
In short, if your credit rating allows you to access this category, then you should definitely consider applying for one of these cards. Just be sure to read the terms and conditions, understand what you are signing up for, and calculate the cost of the offer before you get down to business.