Best credit card bonuses for June 2024 | Bankrate (2024)

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A credit card bonus — whether it’s called a sign-up bonus, intro bonus or welcome offer — is an incentive for new cardholders. In most cases, you’ll need to spend a certain amount on purchases with your new card within a specified time period (usually three to six months) to earn these bonuses. They mostly come as cash back, points or travel miles, but can also be one-time discounts or gift cards.

Credit card bonuses can offer great value if you can meet the spending requirement. Although many card bonuses have relatively low spending requirements of just a few hundred dollars over three months, some require you to spend $6,000 or more. If you’re comparing bonus offers, consider whether it offers a good return on your spending (at least 20 percent for a consumer card). Also keep in mind the value of any points or miles earned — 100,000 points with one hotel brand may not hold the same value as 60,000 miles with an airline.

Our data: Ranking credit card bonuses

Some bonuses are quite valuable but carry a high spending requirement, sometimes upwards of $1,000. With this in mind, it’s important to evaluate a credit card bonus based on the value it offers relative to the spending required.

For example, the Southwest Rapid Rewards® Plus Credit Card’s requires you to spend $3,000 in your first three months to earn 85,000 points (worth around $1,275 based on Bankrate’s airline point valuations). That is about 75 percent return on your spending — one of the most generous ratios you’ll find.

Compare that with the Delta SkyMiles® Platinum American Express Card, which offers 85,000 Delta SkyMiles after you spend $4,000 in your first six months (worth around $1,020 based on our valuations). That’s a 25 percent return on spend.

While return on spend is only one factor to consider when evaluating a bonus, it’s an easy way to assess which welcome offers are the most generous. As a rule of thumb, aim to get at least a 20 percent return on spend. You should also keep in mind the redemption value of the bonus, the total spending required, the timeframe and how useful the rewards currency is based on your goals.

Welcome offers may also encourage cardholders to spend more than they usually would just for the sake of earning the bonus. This spending behavior can lead you into debt and interest charges that have the potential to undermine your bonus and any ongoing rewards. You should avoid this kind of spending at all costs and don’t count on your credit card bonus to pay your balance.

If you want to apply for a card with a valuable bonus, make sure you can meet its spending requirement with your routine spending, unless there are large purchases you’d already planned to make that will help you reach the bonus faster.

In various online forums, including Reddit, many users have recently singled out Capital One credit cards as offering some of the best sign-up bonuses on the market. Capital One bonuses are often cited as a major draw for prospective cardholders and are credited with helping users quickly earn valuable rewards.

One user highlights the Capital One Venture X Rewards Credit Card as offering an impressive sign-up and annual bonus, as well as great ongoing value (especially paired with the Capital One SavorOne Cash Rewards Credit Card):

I like the Capital One duo ([the Venture X and SavorOne]). The [Venture X] will give a nice…sign up bonus, and the statement credits + anniversary points easily cover the [annual fee].

— Reddit User*

Another user cites the speed with which Capital One credits sign-up bonuses to cardholder accounts:

I like the lineup of Capital One cards. They always pay sign-up bonuses promptly, and they have good cash back with easy processes for redemption. They are also easier to deal with than the big banks.

— Reddit User*

Along with praise for specific sign-up bonuses, users share general advice on how to find the rewards card that fits you best. One key point: Don’t let the bonus be the only feature you consider.

One user emphasizes the importance of long-term value and picking the card that best fits your spending habits:

“No fee cards with modest bonuses are nice to take out routinely, but I try to be tactical about this where some of these cards have a long term use for specific categories…Hefty fee cards usually have higher bonuses, but [I] would encourage you to not force yourself to spend the money they offer - should be a natural fit into your life”

— Reddit User*

To make the most of a credit card bonus, you should continue to make wise credit decisions and avoid debt to keep your balance manageable, otherwise you might offset the value of your new bonus with interest charges. It’ll pay to research your card well; the more you know about your redemption options the more valuable your offer can end up being.

Plan ahead

It’s important to calculate the value of a sign-up bonus through the lens of your own financial goals. Although cards have different welcome offers, you can analyze many of them before applying to better understand which one fits your financial needs. Here are some quick tips for certain offers:

• Rewards cards:If you want to earn travel points, look for a card that offers a bonus with points or miles and calculate the value of those points. Consider both the minimum redemption value offered by the rewards program as well as the potential value when you transfer to airline and hotel partners. You can use Bankrate’s points and miles valuation page as a guide when calculating the value of any potential bonus.
• Cash back cards: Calculating a cash back sign-up bonus is straightforward since the dollar amount is already determined. Still, it may help to evaluate the offer based on a value-to-spending ratio if you want the best value (and aren’t worried about the spending requirement).
• Limited-time bonus categories: If you want to calculate a limited-time bonus category's welcome offer value, multiply your spending in that category or thecategory’s spending cap by the limited-time rewards rate to determine how much you can earn.

Spend normally

It's essential to use credit responsibly by making timely payments and staying within your budget. If you spend beyond your means you risk running up interest charges that can outpace the value of any bonus you earn. Deciding on the right card means choosing one that won’t pressure you to spend money you don’t have. If you need to spend money you can’t pay off right away to earn a one-time bonus, it might not be a good fit.

Research redemptions

If your bonus rewards you with points or miles, redeem your rewards wisely to make the most of it. Redeeming points and miles for cash back or gift cards typically results in the lowest value, usually 1 cent or less. However, redeeming points and miles on the issuer’s travel portal or transferring to travel partners can yield the best value.

Consider long-term value

New credit accounts lower your average account age, which can hurt your credit score. Avoid opening new cards just for the bonus, unless these cards will help you in the long term. While bonuses can be attractive incentives, they shouldn’t be the sole reason for choosing a credit card. Consider all aspects of the offer before making a decision that suits your financial goals and needs. Also, always remember to manage your credit responsibly by paying off balances in full each month and keeping track of any fees the card charges.

How this Bankrate expert chooses cards with sign-up bonuses

Here’s how Bankrate writer and credit card expert, Ryan Flanigan, filters through his options when looking for a new credit card with a sign-up bonus:

“Getting a good sign-up bonus is one of the most important factors to consider when opening a new card. I place a lot of focus on how the current offer compares to previous offers because getting a lower offer than what came before can be lost value.

I also think about how the card will meet my needs overall. If I have a travel goal with an airline or hotel, a sign-up bonus can give me a big boost toward the amount of miles or points I need. Also, will any bonus categories help me earn more points while spending towards meeting the bonus? The more value I can extract initially, the better set up I'll be towards meeting my travel or cash back goals.

Lastly, I consider if I can achieve the spending requirement in the allotted timeframe. The biggest mistake someone can make is failing to spend enough to earn the welcome bonus because you won't get another chance. If I have large upcoming expenses, I try to put them towards a new sign-up bonus. Strategic spending like this can help defray larger costs by giving me a bigger return. While there are definitely many factors to consider when picking the right card with an ideal sign-up bonus, I can get a ton of value when I manage my spending wisely.”

— Ryan Flanigan, Writer, Credit Cards

When evaluating the best credit cards with sign-up bonuses, we consider both the quality of a card bonus itself and the card’s long-term value, including its cost and perks.

We calculate the value of each card’s bonus based on our internal point and mile valuations (assuming it’s not a cash bonus) and compare this to the value of bonuses available on cards in a similar category and at a similar price level. We also consider the spending required to earn each bonus.

After identifying cards that carry valuable bonuses with a high return on spend, we factor in how cards score overall in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to scoring a large sign-up bonus to saving on interest.

We analyzed over 250 of the most popular credit cards and selected standouts with high-value sign-up bonuses. We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period, ongoing APR, perks and more to determine whether it belonged in this month’s roundup.

Here’s a quick look at the factors that make up our card scoring methodology for rewards, cash back and business cards (the card types most likely to offer sign-up bonuses), along with more information on how we assess the quality of sign-up bonuses themselves.

• Value65%

• Flexibility15%

• Perks 15%

• Customer experience5%

• Value40%

• Flexibility20%

• Perks20%

• Customer experience20%

Ask the experts: Should I continually look to apply for new cards, so that I can keep earning sign-up bonuses?