Credit card sign-up bonuses: Everything you need to know

Signing up for a new credit card can be a rewarding experience—especially when the card offers an early-spend bonus. 

These bonuses offer the opportunity to earn extra rewards for using the card. But there’s a little more to it than just signing up or applying for a credit card. Learn more, including how they work at Capital One.

What you’ll learn:

• A credit card sign-up bonus offers a one-time rewards bonus. 

• Sign-up bonuses might also be referred to as welcome bonuses or early-spend bonuses.

• To earn a sign-up bonus, new cardholders typically must use the card to spend a certain amount of money within a specific time frame.

• Depending on the card issuer, bonuses could take the form of points, miles, cash back or other credits.

A credit card sign-up bonus is a one-time reward offered to new cardholders. To earn a welcome bonus, cardholders usually have to meet specific requirements, like spending a certain amount on the card within a set time frame.

Sign-up bonuses are different from regular, ongoing credit card rewards.

Here’s a look at some Capital One credit card bonuses for new cardholders—plus a glimpse at regular rewards:

If a credit card offers a sign-up bonus, the requirements can vary by issuer. But usually, a cardholder must spend a certain amount of money on the card within a designated time frame to earn the sign-up bonus. Things like balance transfers, cash advances and wire transfers typically don’t count as purchases. Be sure to check the details of the card’s bonus offer.

The amount of time it takes to receive a sign-up bonus varies depending on the issuer and the card.

If you’re trying to judge how much a bonus is worth, weighing how much you have to spend with how much you might earn is a good place to start. You could review your spending habits to see if you normally spend that much or if you’ll have to stretch your budget. If a card has an annual fee, that might also be worth factoring in.

If you’re overspending or unable to make monthly payments on time, it could hurt your credit.

To make the most of a bonus opportunity, it pays to apply for the right card. Here are some tips to help you narrow down your search for a credit card with a sign-up bonus.

If you’re looking for a new card, it helps to select a rewards card that provides the type of rewards you want—rather than selecting a card only because it seems like an attractive bonus offer.

For instance, it might make sense for someone to pick a card that provides a sign-up bonus of 75,000 miles if they’re a frequent flyer. Someone who doesn’t fly frequently might consider a card that offers a cash back bonus instead.

Some credit cards limit the amount of rewards someone can receive. If you find that limitations on earning rewards isn’t ideal, consider a card that offers ongoing unlimited rewards.

With Capital One, there’s no limit to how much you can earn. And your rewards won’t expire for the life of the account.

Credit card sign-up bonuses can be a great benefit, and your spending habits can help determine whether they’re worth your while. Plus, cards with annual fees often provide more benefits. It may help to make sure those particular benefits work for your lifestyle to help determine if an annual fee is worth it.

Still looking for more information about sign-up bonuses? These frequently asked questions might help.

To earn a sign-up bonus, a cardholder typically must spend a certain amount with the new card within a set period of time. But it’s still important to use the card responsibly.

Looking for a credit card with an attractive sign-up bonus? You can compare cards from Capital One and see if you’re pre-approved, without hurting your credit scores.

Are you new to credit or searching for your next credit card? Capital One can help:

• Check for pre-approval offers with no risk to your credit scores.
• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver or other cash back rewards cards.
• Explore credit cards you can use to build credit responsibly and earn rewards.
• Monitor your credit score with CreditWise from Capital One. It won’t hurt your credit, and it’s free for everyone.