Credit card bonuses vary widely. Most are in the form of bonus points in a specific rewards program. But, there are also cards offering bonus cashback and vouchers. They are one of the most widely known ways to boost a rewards program's balance of rewards points. There are a few hoops to jump through—typically spending a certain amount over a set period of time from sign up—before the bonus will be deposited into your account.
"Sign-up bonuses have changed considerably over the years since we started Credit Card Compare. It used to be that a sign-up bonus could be triggered simply by applying and getting approved. Those days are long gone now, with banks typically requiring a certain amount of spend over a specified period of time before paying out. They're still one of the fastest ways to rank up a lot of points, but you do need to be careful. Avoid chasing spending targets and buying things you don't need."
David Boyd
CEO at Credit Card Compare
How sign-up bonus credit cards work
Sign-up bonus credit cards typically require cardholders to spend a certain amount of money on the card within a specified period, usually the first few months after opening the account. Once the spending threshold has been met, the cardholder becomes eligible to receive the sign-up bonus.
It's essential to carefully read and understand the terms and conditions of sign-up bonus credit cards to ensure you qualify for the rewards.
Benefits of sign-up bonus credit cards
- Earn reward points: Sign-up bonus credit cards allow cardholders to earn bonus points that can be redeemed for rewards such as frequent flyer miles and points, merchandise, gift cards, or cashback.
- Cashback offers: Some sign-up bonus credit cards offer cashback rewards, giving cardholders a percentage of their purchases back in the form of statement credits or actual cash.
- Introductory 0% APR: Some sign-up bonus credit cards come with an introductory 0% APR period on purchases or balance transfers, allowing cardholders to save on interest charges.
- Complimentary travel benefits: Certain sign-up bonus credit cards offer additional travel perks such as airport lounge access, travel insurance, or airline fee credits.
- Waived annual fees: In some cases, sign-up bonus credit cards may waive the annual fee for the first year, providing cardholders with a cost-saving benefit.
How to choose a sign-up bonus credit card
When selecting a sign-up bonus credit card, consider the following factors:
- Bonus offer: Assess the value of the sign-up bonus, including the number of points offered or the cashback percentage.
- Minimum spend requirement: Determine whether you can comfortably meet the required spending threshold to qualify for the sign-up bonus.
- Rewards structure: Evaluate the ongoing rewards program of the credit card to ensure it aligns with your spending habits and preferences.
- Annual fees: Consider the credit card's annual fee and whether any waived fees are temporary or ongoing.
- Additional benefits: Review any supplementary benefits such as travel perks, purchase protection, or concierge services offered by the credit card. These offer value to you only if you plan to use these perks.
Methodology for our sign-up credit card comparison
When choosing cards for inclusion in our sign-up credit card comparison table and their rank order, we considered the following attributes and their associated metadata.
- Annual fee initial year: If there is one, how much the annual card fee is for the first year. Lower is better.
- Annual fee ongoing: If there is an ongoing annual fee and how much it is. Lower is better.
- Apple Pay enabled: If it's possible to use the card with Apple Pay. Considered beneficial if possible.
- Balance transfer offer: If the card has an introductory balance transfer offer, what the balance transfer rate and period is, and how much the fee would be (if any). Lower rates for longer periods are considered better.
- Card type: Whether the card runs on the American Express, Mastercard, Visa, or other credit card network. This impacts acceptance in Australia and overseas.
- Foreign exchange fee: Whether there is a fee charged to convert purchases made in a foreign currency or from an overseas business. Lower is better.
- Interest-free period: Whether the card offers interest-free days if the balance is paid in full and how many there are. Longer is better.
- Introductory purchase rate: Whether the card offers an introductory purchase rate, what the rate is and how long it lasts. Lower rates for a longer period is considered better.
- Late payment fee: How much the fee is if the when a the due date has been missed. Lower is better.
- Maximum credit limit: The maximum possible credit limit (if published).
- Minimum credit limit: The least possible credit limit (if published).
- Minimum income required: The amount of income required according to the bank's eligibility criteria. A lower amout makes the card available to more people.
- Purchase rate ongoing: What the interest rate is on purchases that are carried over from one statement to the next in the absence of any introductory offers. Lower is better.
- Rewards program: Whether the card earns rewards, earn rate per dollar spent, caps and tiers that limit earning potential, what the points can be redeemed for, etc.
- Samsung Pay enabled: If it's possible to use the card with Samsung Pay. Considered beneficial if possible.
- Sign-up bonus: If the card has a sign-up bonus, the type of bonus (points, cashback, voucher, etc.), the spending target, and criteria to trigger the bonus. Larger sign-up bonuses with lower spending criteria are considered better.
- Target market: If the card targets a business or consumer applicant.
Our rankings may not reflect what matters most to you. Be sure to compare key rates, fees, and features against your own financial priorities before deciding.
