What Is a Welcome Bonus?
A welcome bonus (also called a sign-up bonus) is a large chunk of points or miles you earn after opening a new credit card and meeting a spending requirement within a set timeframe.
A typical offer looks like this:
"Earn 60,000 points after you spend $4,000 in the first 3 months"
That's 60,000 points for spending money you'd likely spend anyway—on groceries, bills, gas, and everyday purchases.
Why Welcome Bonuses Matter So Much
Let's do the math. If you earn 2x points on average spending:
- $4,000 in spending = 8,000 points from purchases
- Welcome bonus = 60,000 points
- Total: 68,000 points
To earn 60,000 points from regular 2x spending alone, you'd need to spend $30,000. The welcome bonus compresses years of earning into three months.
At conservative 1.5 cents per point, 60,000 points = $900 in travel value. Some people get 2-4 cents per point, making that bonus worth $1,200-$2,400. All for spending $4,000 you were going to spend anyway.
Anatomy of a Welcome Bonus
Every welcome bonus has three components:
1. The Bonus Amount
How many points/miles you'll earn. Ranges from 20,000 (basic cards) to 150,000+ (premium cards). Higher isn't always better—consider the requirements.
2. The Minimum Spend
How much you need to charge to the card. Typically $500-$6,000 for personal cards, sometimes higher for business cards.
3. The Timeframe
How long you have to meet the spend. Usually 3 months, sometimes 6 months for higher requirements.
Current Typical Bonuses
Note: Bonuses change frequently. Always verify current offers before applying.
Important Rules to Know
Once-Per-Lifetime (Amex)
American Express generally only allows you to earn a welcome bonus on each card once in your lifetime. If you got the Amex Gold bonus in 2019, you typically can't get it again.
48-Month Rule (Chase)
Chase Sapphire cards (Preferred and Reserve) have a 48-month rule: you can't get a Sapphire bonus if you received one in the past 48 months.
Application Velocity
Applying for too many cards too quickly can result in denials. Space applications out—one every 3 months is a reasonable pace for beginners.
Don't Chase Bonuses You Can't Meet
The cardinal rule: never spend more than you normally would just to hit a bonus.
If a card requires $6,000 in 3 months and you normally spend $1,500/month, that's a stretch. Either:
- Choose a card with a lower minimum spend
- Time your application around large planned purchases
- Wait until your spending naturally supports the requirement
Key Takeaways
- Welcome bonuses are the fastest way to earn large amounts of points
- One bonus can equal years of regular spending rewards
- Only pursue bonuses you can meet with natural spending
- Know issuer rules (Amex lifetime, Chase 48-month)
- Bonuses change—always verify current offers