Best Credit Card Welcome Offers for New Cardholders

What are credit card sign-up bonuses?

Credit card sign-up bonuses, also called welcome bonuses, are part of marketing campaigns that credit card companies use to attract new cardholders. These campaigns can have a big benefit for card members who know how to maximize bonuses.

The structure of the bonus depends on the type of card. Cash-back cards provide bonuses in the form of cash back, while travel rewards cards provide bonuses in the form of points or miles that work with a specific program.

If you sign up for a new credit card and are eligible for a welcome bonus, you can earn hundreds of dollars in value, making these offers attractive. You may be able to earn enough of a sign-up bonus, for example, to cover a flight or a few nights in a hotel.

How does a credit card bonus work?

You don’t automatically earn a welcome bonus simply by being approved for a credit card and opening an account. These bonuses come with spending requirements that must be completed first.

Typically, welcome bonuses require you to spend a certain amount within an initial timeline after opening the new credit card account. How much you have to spend, and how quickly, often correlates to the value of the bonus or the type of card. 

For instance, business cards and luxury travel cards tend to require higher spending amounts, but there isn’t a hard and fast rule.

To understand how welcome offers work, consider some real-life examples.  

• The American Express Blue Cash Preferred® Credit Card is a cash-back credit card. It offers a $250 welcome offer. To earn the bonus, you must spend $3,000 on purchases with your card within the first six months of opening the account.
• The Capital One Quicksilver® Credit Card is another cash-back card. It comes with a welcome offer of $200 cash back when you spend $500 in the first three months.
• In contrast, The Platinum Card® from American Express is a travel rewards credit card. The welcome offer for this card is 80,000 Membership Rewards Points when you spend $8,000 on purchases in the first six months. Membership Rewards Points can be redeemed for travel and other rewards.

In most cases, you’re only eligible for a sign-up bonus if you’re a new cardholder or haven’t had a card in that specific product line. For example, if you already have a United Airlines credit card, upgrading to another United Airlines credit card with the same bank may mean you’re not eligible for any sign-up bonus.

What is the best credit card sign-up bonus?

There isn’t a single best credit card welcome bonus on the market, in part because these offers constantly change. 

What’s best for you also depends on your spending habits and goals. A travel rewards card offering an 80,000-point welcome bonus sounds great, but if you never travel or don’t spend enough to earn the offer, it’s not the best credit card option for you.

A good bonus is one that:

• Allows you to earn with regular spending or special planned spending (such as purchasing a kitchen appliance you need with a card that has an introductory APR offer)
• Offers rewards you can use and want
• Has a bonus rewards value that is more than any annual fee

For example, the Capital One Quicksilver card’s $200 cash-back bonus only requires you to spend $500 in the first three months. Most people can easily accomplish that just using the card to cover groceries or gas. Because the card has no annual fee, that $200 value is pure “profit” as long as you pay your statement off every month and don’t incur interest expense. That’s a pretty solid welcome bonus.

The same considerations apply with points and miles cards. Look for welcome bonuses that offer 50,000 or more in miles or points for the best value.

Are credit card sign-up bonuses easy to get?

To earn a credit card sign-up bonus, you must be approved for the card and then meet the minimum spending thresholds within the allotted time. These requirements make the degree of difficulty associated with earning welcome bonuses variable.

Most cards that offer a welcome bonus do require at least a good credit score — or a score in the mid-600s or higher. 

Welcome bonuses with higher spending requirements tend to align with the following:

• Business credit cards. Card companies create welcome bonuses with the likely spending habits of cardholders in mind. They expect businesses to spend more, so required spending can be $5,000 or more in three to six months for some of these offers on business credit cards.
  Editor’s pick: Ink Business Preferred® Credit Card
• Luxury travel rewards cards. Companies want to attract luxury travelers, so the sign-up bonus may require spending on the higher end.
  Editor’s pick: The Platinum Card® from American Express
• High-value bonuses. If a welcome bonus has a value of $800 or more, it typically requires you to spend several thousand dollars or more in the first few months.
  Editor’s pick: Chase Sapphire Reserve®

How to choose the right credit card sign-up bonus for you

To get the best sign-up bonus for you, consider the big picture. Not all credit cards with a welcome bonus are a good fit for every person.

Let’s take a look at what you should think about.

Think about the rewards you want

Start by considering the type of rewards you can get the most value out of. 

Options can include:

• Cash back. This is the easiest reward for most people to use, as you earn various levels of cash back on purchases. You can use those rewards to reduce your statement balance or, in some cases, request a payout via check or PayPal.
  Editor’s pick: Blue Cash Preferred by American Express
• General travel points. These rewards can be redeemed when you book travel. Often, you get the most value when booking through the credit card’s travel program, but some cards let you convert points to use with hotel or airline customer loyalty programs. This is typically the most flexible option for travel rewards.
  Editor’s pick: Chase Sapphire Preferred
• Hotel points. Hotel-branded credit cards let you earn points you can redeem on hotel stays and other rewards. This option is good if you prefer a specific hotel brand and stay at its properties often.
  Editor’s pick: Hilton Honors American Express Surpass® Card
• Airline miles. Airline-branded cards let you earn miles for specific programs, such as Delta or Southwest. This option may be a good idea if you fly frequently with a certain airline.  
  Editor’s pick: Delta SkyMiles® Platinum American Express Card
• Other branded rewards programs. Some stores provide rewards credit cards, such as the Capital One Walmart Rewards® Mastercard®. If you shop often with that store, you may be able to maximize rewards to save money.
  Editor’s pick: Capital One Walmart Rewards® Mastercard®

Consider the minimum spending requirements and annual fees

Choose a card that matches your budget. If you can meet the spending requirements without maxing out your card and not paying off your balances, it’s not a good option for you. Rewards cards work best when you can earn value on spending you already planned.

Pay attention to the annual fee, too. If you won’t get more in rewards each year than the fee costs, the card probably isn’t worth it.

Look at the drawbacks of each card

Consider any potential negatives, such as high APR, blackout dates for redeeming rewards, or limited cash-back categories that might impact your ability to maximize earnings.

Try CardMatch to see if you get offered an even higher bonus

CardMatch is a free online tool that recommends credit cards that match your preferences and qualifications. Sometimes you can get targeted offers with this tool, meaning there’s a chance you’ll be offered an even higher welcome bonus than the credit card issuer advertises on their site. Using this tool won’t even affect your credit score, so there’s no harm in seeing your matches. Learn more in our helpful guide to how CardMatch works.

Are credit card bonus offers worth it?

Credit card welcome offers are certainly worth it in many cases, especially if you can meet the spending requirement without changing any of your financial habits. Consider whether you can earn the bonus by using your card to buy gas, groceries, and business supplies or make other planned purchases.