There are two main ways to evaluate whether a credit card is good: its long-term holding value and its sign-up bonus value. So for most applicants, the motivation for applying usually comes from one of these two factors. Long-term value generally depends on your spending habits and your preferences for various benefits, which we already analyzed in detail in the article “Which Credit Card Should I Apply For? — Long-Term Holding Edition.” Today, we’ll talk about the other angle: sign-up bonuses.

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What Is a Sign-Up Bonus?

A sign-up bonus is an extra reward that a bank offers to encourage you to use a new card more, usually if you spend a certain amount within a set period after opening the card. For example: spend a total of $1,000 within the first three months after opening the card, and receive $150.

How to Evaluate a Sign-Up Bonus

We all know that when you apply for a credit card, the cost to you is one HP and one new account (both can lower your credit score in the short term), in exchange for the card’s sign-up bonus and long-term benefits. Assuming the long-term value stays the same, the more valuable the sign-up bonus is, the more reason you have to choose that card. Of course, this assumes you can actually get approved. In general, a sign-up bonus can be evaluated from the following aspects:

  • Whether the sign-up bonus is useful to you

If the sign-up bonus is cash, then obviously more is better. But if the sign-up bonus is airline miles or points, then in general, if you probably won’t use those points within 1–2 years, you may be better off not applying. Miles and points are often devalued. A hotel night that costs 10,000 points today may cost 20,000 points two years later.

  • Whether you can meet the spending requirement

Some credit cards require you to spend $4,000 in three months. If that is far beyond your normal spending and you can’t find another low-cost way to meet the requirement, you may be better off choosing a card with a lower spending requirement and a moderate sign-up bonus.

  • The actual value of the sign-up bonus

For cash bonuses, more is naturally better. For miles and points, it’s best to first estimate what those bonus points are actually worth to you. If you have no idea, you can refer to the article “A Brief Review of Different Points Currencies.” Don’t assume that 80k points is automatically better than 40k points. A very possible scenario is that the former is worth 0.5 cent per point, while the latter is worth 2 cents per point.

For general airline miles cards and hotel points cards, you can use $400 as a rough dividing line. For example, the SPG credit card offers a 25k-point sign-up bonus worth $500+, which makes it worth applying for.

  • How the current sign-up bonus compares with historical offers

Banks constantly adjust sign-up bonuses, so before applying, it’s best to compare the current offer with the historically common high offers. Please see the post “Highest-Ever Credit Card Sign-Up Bonuses.” At the same time, targeted offers you receive by mail and prequalified offers you find online are often better than the public official offer, which we’ll explain in more detail below.

How to Find a Better Sign-Up Bonus

If you’ve already decided to apply for a credit card, check the following places before submitting your application to see whether there is a better sign-up bonus available.

  • Google: directly search for the highest sign-up bonus for XX credit card (it’s usually better to search in English). Before applying, make sure the offer still matches the search result, because sometimes the promotion may already have expired.
  • The blog page “Highest Sign-Up Bonuses” (still under construction)
  • The prequalified offers pages on each bank’s official website (to look for good offers targeted to you, use your browser’s incognito/private mode)
  • Credit card matching tools
  • Call customer service directly and ask whether there are any offers targeted to you

Sign-Up Bonus Matching

After applying for a credit card, you may sometimes discover a new offer, such as a higher sign-up bonus or a lower spending requirement. At that point, don’t beat yourself up for applying too early. First, contact customer service and see whether they can match it. If you meet certain conditions, a representative may manually make up the difference in the sign-up bonus. Here’s a bank-by-bank discussion:

  • Chase

The general policy is that they can match a new sign-up bonus within three months. You can call the number on the back of the card or send a secure message. If you send a message, it’s best to include a screenshot or link to the new offer you found.

  • Citi/Barclays

In general, they can match a new sign-up bonus (there is no clearly defined time limit). You can call the number on the back of the card or send a secure message. If you send a message, it’s best to include a screenshot or link to the new offer you found.

  • Amex/Discover

In general, they cannot match a new sign-up bonus, though if you call and push a bit, you may get a small amount of compensation.

Earning a Sign-Up Bonus More Than Once

Some cards allow you to earn the sign-up bonus more than once, so you can get multiple bonuses by applying for the same card multiple times. However, policies keep changing, so below are only some current situations by bank:

  • AMEX: Since 2004, you can earn the sign-up bonus on a given card only once per lifetime.
  • Chase: Two years after receiving the first sign-up bonus, you can earn it again. You need to close the previous card and reopen it to get the bonus.
  • Citi: If you have not opened or closed this card within the past 18 months, you can earn the sign-up bonus again after being approved.
  • Barclays: You may be able to apply for the same card multiple times and get the sign-up bonus multiple times (subject to change).
  • BofA: You may be able to apply for the same card multiple times and get the sign-up bonus multiple times.

 6. Things to Keep in Mind

  • Spending that counts toward the sign-up bonus generally does not include annual fees, refunded purchases, interest charges, Balance Transfer, or cash advance.
  • After receiving the sign-up bonus, do not close the card immediately, or the bonus may be clawed back.
  • If the sign-up bonus is airline miles or hotel points, those rewards are usually transferred to the corresponding airline or hotel loyalty account after you receive them. Closing the card afterward does not mean those points will expire immediately (expiration follows the airline/hotel program’s rules, generally ranging from 18 months to 2 years).
  • The time limit for meeting the spending requirement is generally calculated from the date your application is approved, not from the date you activate the card.
  • High sign-up bonuses are often limited-time offers, so if a great one appears, it’s usually best to apply as soon as possible.

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