What are credit card sign-up bonuses?

Credit card sign up bonus is a promotion offer that is given to new clients of banks and financial institutions. These rewards come in the form of reward points, cash back, or travel points and are usually given to card holders within the first few months of issuing the card or within the card’s first year.

How Sign-Up Bonuses Work

As for the features of bonuses, the individual reward, which is given by the credit card issuer to the holder, is given on the basis of meeting certain requirements, such as spending a fixed amount within a given period of one to three months. For example, you could get 5,000 reward points or some amount in cash back if you spend of ₹50,000 in the first three months on a specific card.

Types of Sign-Up Bonuses

1. Reward Points: These points can be cashed in for items like groceries, hampers, gift cheques, or even outstanding travel bookings. They are flexible, keeping in mind that they may be used under many classes.

2. Cashback: This type of bonus gives the percentage of the amount you have spent back to you in the form of statement credit or deposit in cash. Cashback bonuses are rather simple and their benefits can be seen right away.

3. Travel Miles: Catering to business people and those who are on a hurry to travel, these points can be used to book flight tickets, hotel accommodations, or even other traveling costs. Other reward miles are frequently worth more when used for travel.

Examples of Sign-Up Bonuses

- HDFC Bank Regalia Credit Card: Upon activation, you can be rewarded with 2,500 points that may be used to various considerations by filling online reward catalog, such as travel and shopping.

- SBI Card Elite: Now it comes with 5,000 reward points that can be redeemed after the annual fee has been paid, there are still other privileges that come with the card such as free movie tickets.

- Axis Bank Vistara Signature Credit Card: Offers a free business class ticket as a on board gift suitable for businesspeople who travel often.

 Maximizing Sign-Up Bonuses

For most of these bonuses, it is good to engage in massive purchases at some time when you are issued the new credit card in order to meet the spending threshold of the card as early as possible. Select the card that will help in getting more points for the expenditure one usually makes or the kind of life one prefers. Another way of ensuring the effortless achievement of spending thresholds is to apply before the periods of expected high expenditure, for example, during the holidays.

Conclusion

For the first transactions that are usually performed after getting a credit card, sign-up bonuses make it possible to get good benefits. Being aware of such terms and learning how to manage your expenses, you will be able to benefit from these financially rewarding promotions to the maximum if you possess a credit card.