Sign-up bonuses are introductory offers to new cardholders, and can often be worth a substantial amount of money.
Sign-up bonuses come in several different forms ranging from cash back that can be redeemed as a statement credit, to items like bonus points or miles. Both bonus points and miles can be redeemed for many different items, including travel. You should check and see what you can redeem points and miles for before you decide on a new card as every card offer is different.
Keep in mind, most sign-up bonuses require you spend a certain amount of money within a certain period of time, often the time period is a few months. Better sign-up bonuses usually require you to spend more money, but there are still very lucrative sign-up bonuses available for cardholders who do not want to spend as much.
You should fully evaluate your spending habits, and find a sign-up bonus offer that matches the amount of spending you would usually do during the introductory period time, you do not want to overspend just to meet a sign-up bonus threshold.
Sign-up bonuses can save you a substantial amount of money in a relatively short time period, just a few months. But, those savings can quickly be lost if your new card comes with an excessive number of fees. Fees ranging from fees assessed annually, to fees for balance transfers or interest paid on balances carried from month to month. You should carefully evaluate the fees you will be charged on any new credit cards you are considering.
Also, it is best to be sure you are able to pay off your balance every month, making it possible to avoid what could potentially be hefty interest rates. It is important to make sure you are getting the best interest rate available to you when you search for a new sign-up bonus card, just as you would when searching for any other new credit card.
One of the potentially beneficial ways to utilize a sign-up bonus on a new card is to look for offers when you know you are going to be making a large purchase that will fulfill the sign-up bonus spending requirement. This is a great way to save a good amount of money on a large purchase you were already planning on purchasing. Keep in mind, opening a new line of credit may affect your credit score, so it is best to make sure you are ready for a new card, and not just opening a new account solely for the sign-up bonus.
There are several options available to borrowers looking for a new credit card with an introductory sign-up bonus. The savings can be potentially worth a substantial amount of money if you find the best possible offer available.