What is a credit card sign-up bonus?

Credit card sign-up bonuses are one-time offers to new cardholders. They’re usually offered as cash back, credit card points or travel miles. New cardholders may need to meet certain conditions to receive the bonus. For example, they may need to reach a minimum spending requirement within the first few months of opening the account.

What you’ll learn:

• A credit card sign-up bonus offers new cardholders the opportunity to earn extra rewards for opening an account and using the card.

• Sign-up bonuses are sometimes called 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 and the issuer, bonuses could take the form of miles, cash back or other credits.

Sign-up bonuses—sometimes called welcome bonuses or early-spend bonuses—are different from regular, ongoing credit card rewards. They can only be redeemed once, usually after meeting the minimum spending requirement.

For example, the Capital One Quicksilver card allows you to earn $200 cash back as a sign-up bonus if you spend $500 within 3 months of opening the account. Requirements for sign-up bonuses vary by issuer. Bonuses typically can be earned alongside regular rewards a card might offer.

Balance transfers, cash advances and wire transfers typically don’t count as purchases.

The time it takes to receive a sign-up bonus depends on the issuer and the card. For qualifying Capital One cardholders, bonuses are applied to rewards balances within two billing cycles once the spending requirement has been met.

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

Here are some tips to help you get the most out of a bonus opportunity.

When looking for a new rewards card, it can help to think about the type of rewards you want. For instance, if you enjoy travel, it might make sense to pick a card that lets you earn bonus miles. But if you don’t travel frequently, you might consider a card that offers cash back instead.

If you find that a card with limits on rewards isn’t ideal, you might consider a card that offers unlimited rewards. With Capital One rewards cards, there’s no limit to how much you can earn. And your rewards won’t expire for the life of the account.

Sign-up bonuses can be a great benefit, and your spending habits can help determine whether they’re worth your while. For example, comparing an annual fee with potential perks can help you decide whether the fee is worth it.

Review how much you have to spend to earn the bonus to ensure you can meet this threshold without overextending your budget. If you have to spend beyond your means to hit a certain spending requirement, it might not be worth it. If you’re planning a major purchase in the near future, it could help you reach the bonus requirement without unnecessary spending.

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

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

• See if you’ll be approved for credit card offers with 100% certainty—without harming your credit scores. 
• Explore travel rewards cards with unlimited miles you can actually use. 
• Earn cash back on every purchase, every day, with a cash back rewards card. 
• Earn unlimited cash back on food and fun with a dining and entertainment rewards card.