For consumers, the great advantage of the credit card industry is that it is extremely competitive. There are few other products available that pay you just to try them out. Yet that is essentially what credit card issuers do when they offer generous welcome bonuses – sometimes. valued at $ 1,000 or more – when you open a new account and meet the spending conditions.
How Credit Card Bonus Offers Work
With most reward credit cards, new account holders should expect to receive a generous welcome bonus. But first you need to earn this bonus: there is usually a minimum spending requirement that needs to be met within a limited amount of time. For example, an airline credit card may offer new applicants 50,000 bonus miles after using the card to spend $ 3,000 within three months of opening the account.
To ensure that you receive the bonus, remember that your account is opened on the day your request is approved, not when your card is first mailed, received, activated or used. With most card issuers, you will receive your bonus shortly after your statement is closed in the month you meet the minimum spend requirements.
Should you close your account after getting the bonus?
Many people choose their credit cards, largely based on the welcome bonus offered. You may be tempted to cancel your account after receiving the bonus. But you should really avoid doing this.
Canceling your card immediately after receiving a bonus may violate the terms of some card issuers, and they may decide not to do business with you in the future. Also, it is often not in your best interest to cancel a credit card account you just opened. Why? On the one hand, you will lose the rewards and benefits offered by the card.
Welcome credit card offers exist to give you a chance to evaluate a new card, and that’s what you really should be doing. You are expected to keep the Card Account open and in good standing for at least a year and then decide if it meets your needs. By canceling a card quickly, you reduce the average length of your account history on your credit report, which is a small but important factor in your credit rating. Plus, you likely won’t receive a refund of your annual fee if you cancel.
What’s the best credit card welcome bonus for you?
The best credit card welcome bonus will be the one that is most valuable to you. When it comes to cash back, it’s pretty easy to figure out which is the best bonus. Things get complicated when trying to assess the value of bonuses awarded in the form of reward points or miles. You must therefore determine the real value of these rewards or miles.
For example, if you see that a resort credit card offers 100,000 points, it only makes sense when you research the value of the free nights that those points can be redeemed for. To find out, go to the hotel’s website and see how many points are needed for a free night at a place you’d like to go. Then compare it to the price you would otherwise pay in dollars.
At the same time, you should consider the card itself, apart from the one-time bonus. Does it have any features and benefits that you can use? Does it offer competitive rewards for spending? Are the fees reasonable? When you find that a card offers both a great welcome bonus and great rewards, along with solid features and benefits and acceptable fees, then this is the card for you.
Best Credit Card Bonus Offers: September 2020
This popular travel rewards card just increased his welcome bonus to the highest amount ever. Another novelty this year, the Favorite Chase Sapphire The card offers ways to earn and redeem bonuses for everyday purchases, not just travel. With an annual fee of $ 95, it’s a great way to get started with rewards credit cards.
- Welcome bonus: You can now earn 100,000 Ultimate Rewards points, worth $ 1,250 in credits for daily spending or travel booked through Chase, after spending $ 4,000 within three months of opening the account.
- Rewards for spending: 2x on meals, including eligible delivery services, take out, restaurant meals and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Annual subscription : $ 95.
here is another one main rewards card who recently increased their welcome bonus and made changes to offer more rewards other than travel. This last offer offers 100,000 bonus miles after spending $ 20,000 on purchases in the first 12 months after opening the account. Or, you can still earn 50,000 miles if you spend $ 3,000 on purchases within the first 3 months of opening the account.
The Company awards The card offers unlimited double miles on all purchases, plus 5x miles on all food delivery and pickup orders with Uber Eats (through January 31, 2021). Miles can be redeemed for one cent each as statement credits for travel purchases, and until the end of 2020 you can redeem your rewards for recent and eligible restaurant delivery, takeout and streaming services to thousands of merchants. You can also transfer your Capital One Miles to airline miles or hotel points. There is an annual fee of $ 95 for this card.
- Welcome bonus: Earn 100,000 bonus miles after spending $ 20,000 on purchases in the first 12 months after opening the account. Or, you can still earn 50,000 miles if you spend $ 3,000 on purchases within the first 3 months of opening the account.
- Rewards for spending: Earn unlimited double miles on all purchases
- Annual subscription $ 95
This is a no-cost reward card that currently has a welcome offer that includes both cash back and a special bonus on travel purchases valid for one year. You win a $ 200 bonus after spending only $ 500 within three months of opening the account plus you receive 5% cash back on travel purchases when you book through Chase Ultimate Rewards. Cardholders can also earn 3% cash back on restaurant and drugstore purchases. Otherwise, Unlimited freedom offers 1.5% cash back on all purchases, with no limit, and no annual fee.
- Welcome bonus: $ 200 bonus after spending just $ 500 within three months of opening the account, plus you receive 5% cash back on travel purchases when you book through Chase Ultimate Rewards.
- Rewards for spending: 1.5% cash back on all purchases, no limit.
- Annual subscription : $ 0
This card can be one of the best cash back cards offered today, and it’s even better with this big welcome bonus. While the combined $ 350 welcome bonus is generous, you could earn even more money each year at a 6% discount (up to $ 6,000 spent, then 1%) at US supermarkets with the Favorite Blue Silver menu. All of these opportunities to earn rewards make his annual fee of $ 95 ($ 0 in the first year) worth it.
- Welcome bonus: Earn up to $ 350 combined in statement credits after spending $ 3,000 on new purchases within six months of opening the account. Plus, get 20% back on Amazon.com purchases with the card during the first 6 months of card membership, up to $ 200 back.
- Rewards for spending: Earn 6% Cash Back at U.S. supermarkets (up to $ 6,000 spent annually) and select streaming services. Earn 3% cashback at gas stations in the US and on public transportation purchases (including taxis / carpooling, parking, tolls, trains, buses, etc.) and 1% elsewhere.
- Annual subscription $ 0 the first year, then $ 95
- See prices and fees. Conditions apply *
Here’s another card offering a welcome bonus of 20,000 points, worth $ 200 in cash back and other rewards, after spending just $ 1,000 within 90 days of opening the account. It gives you fantastic 4x rewards on take out, food delivery and meals, and 2x points at grocery stores, grocery delivery, gas stations and on streaming services. There is no annual fee for this card.
- Welcome bonus: 20,000 points, worth $ 200 in cash back and other rewards, after spending just $ 1,000. within 90 days of opening the account.
- Rewards for spending: 4x rewards on takeout, food delivery and meals, and 2x at grocery stores, grocery delivery, gas stations and on streaming services, 1x elsewhere.
- Annual subscription : $ 0