What are the best credit card bonus offers?

A credit card sign-up bonus is essentially an introductory reward offered by a credit card issuer to new cardholders who apply and meet specific criteria, typically a minimum spending requirement within a defined timeframe. These bonuses, often in the form of cash back, points, or miles, serve as an incentive to attract new customers. While these initial offers can be attractive, it's crucial to consider the card's long-term value, including its ongoing rewards program, fees, and other benefits, rather than solely focusing on the sign-up bonus.

When a credit card offers a sign-up bonus, it typically works by requiring new cardholders to spend a certain amount of money on purchases within a specific initial period after opening the account. If this spending requirement is met within the given timeframe, the cardholder will then receive the advertised bonus, which could be in the form of cash back, points, or miles. The exact spending threshold and the time allowed to reach it can vary between different credit card offers.

No, sign-up bonuses are not paid up front. Credit card companies give you a specific number of months to earn your sign-up bonus. You may think that once you have met the outlined threshold, you can get your rewards right away. Unfortunately, that's not usually the case. After earning your rewards, it may take up to six to eight weeks for them to be credited on your account.

A good credit card sign-up bonus allows you to maximize the benefits of the card. Companies offer sign-up bonuses to convince consumers to carry their card, and these bonuses may take several forms. In some cases, you may get cash back for spending a certain amount of money in the first months of having the card, which is outlined by the credit card company. Other bonuses may come in the form of points or miles, or even limited-time offers like a 0% introductory APR period.

When it comes down to it though, a good credit card welcome bonus is a bonus that you can realistically earn, and use. A card offering 100,000 bonus miles with an airline you never fly, for example, likely won't benefit you much. You should never choose a credit card based solely on its welcome offer, but if a card you are considering does have a welcome offer, be sure it's realistic for your lifestyle and spending habits.

The CardName currently offers one of the most valuable bonuses, worth 25% more if you redeem your points through Chase Travel℠. Because it is at the higher end of sign-up bonuses, CardRatings experts consider it the best credit card bonus. However, this card also comes with several other valuable features that make it well worth carrying.

Keep in mind, though, that there is an annual fee of AnnualFees, so it has to offer a valuable bonus to help new cardholders offset the fee a little. If you don’t see yourself using the benefits the card offers or if for some reason you won’t be able to take advantage of the credit card bonus, this may not be the card for you.

Generally, credits cards that offer lower bonus amounts, as well as lower spending thresholds required to qualify for those bonuses, are easier to earn than those cards with higher bonuses. Cards that have high bonuses also usually have high spending requirements– and usually higher available lines of credit– so they tend to be for consumers with excellent credit histories.

If you only average, say, $200 a month spend on your card, it's going to be quite difficult, and probably unrealistic for you, to try and earn a $500 welcome bonus that's earned once spending $3,000 within three months, for example. If you regularly spend $1,000 or more on your credit card each month though, a bonus like this should be no problem for you to earn.

To earn a credit card bonus, you generally need to spend a certain amount of money on the card within a specific timeframe after opening the account. Make sure the required spending fits your normal budget and avoid overspending or going into debt just to get the bonus. Consider your upcoming expenses and if you can strategically use your new card for planned purchases to meet the spending goal. Learn more about how to earn a credit card welcome bonus.

If you earned credit card rewards by spending money, then no, these rewards aren't taxable. Generally, if you are earning cash back on a percentage of your purchases, for tax purposes the money you get back is considered a rebate or discount, so that is not taxable. However, if you earn a bonus without spending anything, you may need to report that bonus as income as it isn't tied in any way to spending. Because credit card companies almost always require you to meet some sort of spend threshold before earning a bonus though, this situation is very rare. Occasionally though, there will be some sort of bonus offer where you can earn a bonus just for being approved for the card. So, in those rare situations, it's important to take into consideration the tax implications that bonus could have.  Also, if you have a business card, since the purchases you make are tax deductible, any cash back that you receive on those purchases could reduce the amount of the deduction you are allowed to write off.

For further information, please see our guide to credit cards and taxes.