For newbies, credit card sign-up bonuses or welcome offers emerge as pivotal strategies for unlocking savings on your forthcoming travels. In this article, we’ll explore sign-up bonuses and provide you with comprehensive insights to kickstart your point and mile accumulation endeavors. Want to learn more? Read on!
The Incentive Behind Banks’ Sign-Up Bonuses
Major banks make a lot of money through travel rewards cards. Due to the fierce competition, credit card issuers use signup bonuses as a way to lure customers. Securing these sign-up bonuses can serve as a tool for initiating a long-term credit card strategy.
Consider these offers as upfront payments extended by the bank as you initiate your cardholder relationship. The bank wants you to remain a loyal card member for as long as possible. This enables them to recoup the expenses incurred while acquiring your business throughout your relationship. Many premier rewards cards offer great value, so this symbiotic arrangement benefits both parties.
Credit Card Sign-Up Bonus
Sign-up bonuses exist to grant you a specific timeframe to spend a fixed amount using your new card. In return, the bank grants you a one-time bonus, usually points, miles, or cash back. The Chase Sapphire Preferred® Card extends a sign-up offer of 60,000 bonus points following a $4,000 purchase expenditure within three months of account activation.
Cracking the Code of Minimum Spending Requirements
The monetary threshold you must cross to unlock your credit card bonus is known as the “minimum spending requirement.” Failing to meet this stipulated threshold within the designated time frame results in the forfeiture of the bonus points.
The countdown for meeting the minimum spending starts from the day of your card approval, not on card receipt or activation. This distinction implies you might lose a week or two while waiting for your card’s delivery. If you anticipate nearing the minimum spending threshold’s deadline, contact the number on the back of your card to confirm the offer’s expiration date.
Additionally, remember that several purchases may take a day or two to reflect in your account. Hence, procrastination until the eleventh hour is a big no. Ensure all transactions are posted to your credit card account before the stipulated deadline to ensure eligibility for your sign-up bonus. While most requirements span three months or 90 days, certain variations may exist, especially in scenarios involving bonuses with dual components.
