Are credit card sign-up bonuses tax deductible?

No, credit card sign-up bonuses are not tax deductible. In general, your sign-up bonus is not taxable if you have to spend money to earn it. However, the bonus could be considered taxable income if there isn’t a defined spending requirement.

What credit card bonuses are the easiest to get?

A variety of cards with sign-up bonuses require minimal effort to qualify. On average, no-annual-fee cash back credit cards tend to offer the lowest spending requirement for a welcome bonus. Some require only $500 to $1,000 in spending to earn a decent bonus (typically a $200 value). There are a few credit card offers (mainly with no-annual-fee cash back cards as well) that temporarily increase your rewards rate or match the rewards you earn in a certain time frame, which easily fit within your regular spending. A few co-branded cards and other less traditional cards may provide bonuses upon approval, but these offers may be taxable in some cases.

Can you open multiple cards at once to get more sign-up bonuses?

You could try to open several cards at once to get the sign-up bonuses, but this could be seen as “card churning” and could have negative consequences. Some card issuers have strict eligibility rules for welcome offers, and in the process, you could temporarily damage your credit with multiple credit applications. For example, the Chase 5/24 rule states that if you’ve opened five credit cards from any issuer within the past 24 months, you will likely not be eligible to open a new Chase credit card. The issuer intends to use the rule to limit the number of “churners” who sign up for credit cards with the sole intention of earning a sign-up bonus.

Best credit card bonuses for July 2025

Compare Bankrate's top credit card bonus offers

Card	Welcome offer	Annual fee	Bankrate review score
Capital One Venture Rewards Credit Card	Intro Offer: Earn 75,000 miles Earn 75,000 miles once you spend $4,000 on purchases within the first 3 months of account opening	$95	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
The Platinum Card® from American Express	Intro Offer: As High As 175,000 points. Find Out Your Offer. You may be eligible for as high as 175,000 Membership Rewards® Points after spending $8,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.	$695	4.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Chase Sapphire Preferred® Card	Intro Offer: 75,000 bonus points Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.	$95	4.9 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site See Rates & Fees
Capital One Venture X Rewards Credit Card	Intro Offer: Earn 75,000 miles Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel	$395	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Blue Cash Preferred® Card from American Express	Intro Offer: Earn $250 Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.	$0 intro annual fee for the first year, then $95.	4.4 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Wells Fargo Active Cash® Card	Intro Offer: $200 cash rewards Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months	$0	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Wells Fargo's secure site See Rates & Fees
Capital One Savor Cash Rewards Credit Card	Intro Offer: Earn $200 Cash Back $200 Cash Back after you spend $500 on purchases within 3 months from account opening	$0	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Bank of America® Customized Cash Rewards credit card	Intro Offer: $200 $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.	$0	3.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Bank of America's secure site
Southwest Rapid Rewards® Plus Credit Card	Intro Offer: Earn 50,000 bonus points. Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.	$69	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site See Rates & Fees
Hilton Honors American Express Surpass® Card	Intro Offer: Earn 130,000 Hilton Honors Bonus Points Earn 130,000 Hilton Honors Bonus Points after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership.	$0 introductory annual fee for the first year, then $150. Offer Ends 8/13/2025.	4.7 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Bank of America® Travel Rewards credit card for Students	Intro Offer: 25,000 points 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.	$0	3.9 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Bank of America's secure site
American Express® Business Gold Card	Intro Offer: Earn 100,000 points Earn 100,000 Membership Rewards® points after you spend $15,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*	$375	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Ink Business Unlimited® Credit Card	Intro Offer: Earn $750 bonus cash back Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.	$0	4.2 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site See Rates & Fees
Chase Freedom Flex®	Intro Offer: $200 Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening	$0

On This Page

Types of credit card bonuses

Credit card bonuses are typically distributed as additional cash back, points or miles. However, several types of welcome offers can be just as valuable — if not more so — than traditional, straightforward offers.

These offers are the most straightforward to earn and most commonly available on credit cards. They’re great if you want to earn a lump sum of points, miles or cash back for short-term spending.

No-annual-fee cards usually offer a $200 value for spending $500 to $1,000 within the first three months, and premium card bonuses often go up to $500 to $800 for $4,000 to $6,000 spent in the first three to six months. Business cards sometimes offer an even more valuable bonus with a higher spending requirement.

Co-branded airline or hotel credit cards often offer perks like airfare companion passes or free night awards for meeting bonus spending requirements. One example is the Alaska Airlines Visa Signature® credit card, which includes Alaska’s Famous Companion Fare™ as part of its limited-time welcome offer.

Depending on how you use them, award nights and airfare companion passes can be some of the most valuable offers on the market. You may be able to squeeze thousands of dollars in value from these perks depending on how and when you utilize them.

Cards can sometimes offer boosted rewards rates in special bonus categories — or even on general spending — when you first open the card. These limited-time bonus categories usually expire after you reach a spending cap and/or after a certain time. For example, we’ve seen some cards provide a temporary 3 percent to 5 percent back on additional categories like travel, dining or groceries for up to a year.

Limited-time rewards rates can sometimes carry even more potential than the typical bonus offer depending on your spending habits and the intro rate’s spending limitations. For example, an extra 1.5 percent back on up to $20,000 in spending in your first year could be worth up to $300 in cash back.

This type of welcome offer doesn’t hold a set value. It’s based instead on your spending. These offers typically match the rewards you earn within a set period and can be especially valuable for big spenders. The best example is the Cashback Match® that Discover cards provide.

A credit card may offer an upfront bonus the moment you’re approved instead of setting a spending requirement. This offer is more common among store credit cards, which typically offer a gift card worth around $50 to $150 when you’re approved for the card, such as the Amazon gift card that comes with opening the Prime Visa card.

What makes a great credit card welcome offer?

Sign-up bonuses are some of the best tools a credit card issuer has to reel in applicants and, in the case of limited-time offers, try to push people to act fast. That’s why it’s important to carefully weigh a welcome offer beforehand to make sure you’re actually getting a good deal. To properly gauge whether a welcome offer is “great,” determine whether it’s an above-average value, fits your normal spending, suits your reward preferences and if it’s ultimately worth the effort.

The best sign-up bonuses are more valuable than what other cards of its class offer. You should aim to obtain a bonus worth at least the typical welcome offer value for each card category below:
- No-annual-fee rewards cards: $200
- Premium rewards cards ($99 annual fee): $600–$750
- Luxury rewards cards ($300+ annual fee): $600–$1,300
- No-annual-fee business cards: $250–$750
- Premium business cards: $750–$2,000
However, a “great” bonus also has to factor in more than raw value. Although a cash rewards bonus and travel rewards bonus may have the same raw value through the issuer, the travel bonus may be more valuable if you can transfer points to travel partners for more value.
A “great” bonus should provide personal value, too. If you don’t travel often or hate the hassle of transfer partners, a cash back bonus would ultimately be more valuable. Similarly, a lump sum of rewards may be better than a hotel award night or airline companion pass offer, depending on your travel preferences.
Great examples: Bank of America® Customized Cash Rewards credit card, Blue Cash Preferred® Card from American Express, Capital One Venture Rewards Credit Card, Ink Business Cash® Credit Card, The Platinum Card® from American Express, Capital One Venture X Business Rewards Credit Card and Capital One Spark Cash Plus
Even if a welcome offer you've been eyeing is one of the most valuable on the market, it won’t matter if you can’t reasonably meet the spending requirement . You shouldn’t spend outside your means to obtain a bonus, since accumulating interest could easily eat through the bonus’ rewards value.
No-annual-fee rewards card sign-up bonuses typically have a $500 spending requirement within the first three months. Premium cards with a $99 annual fee tend to require a $4,000 spend in the first three to six months in exchange for more valuable offers, but higher-tier premium cards (often with a $300+ annual fee) often pose a $6,000 spending requirement in a similar timeframe.
These high spending requirements branch over to business card bonuses — which tend to require a $3,000 to $6,000 spend in the first three months with no-annual-fee cards and $8,000 to $30,000 in three to six months with premium cards.
Great examples: Chase Freedom Unlimited®, Bank of America® Customized Cash Rewards credit card, Capital One Venture Rewards Credit Card, Ink Business Cash® Credit Card, Ink Business Preferred® Credit Card and Capital One Spark Cash Select
Determining the actual return you're getting on your spending is a good way to tell whether a welcome bonus is actually a good deal for the effort. You can determine an intro bonus' percent return on spend by dividing the end rewards value by the total spending required.
For reference, no-annual-fee rewards card welcome offers often have a 40 percent return ratio and premium card offer return ratios tend to be between 20 percent and 30 percent. Business card returns similarly vary, although 10 percent to 20 percent is common.
Great examples: Southwest Rapid Rewards® Plus Credit Card, Chase Freedom Unlimited®, Chase Sapphire Preferred® Card, Capital One Venture X Rewards Credit Card and Hilton Honors American Express Surpass® Card

And depending on your credit score, you may see an above-average welcome offer on a website or in the mail. Waiting for one of these could score patient applicants even more value. In fact, a personalized offer was the deciding factor for Bankrate editor Madison Hoehn when she finally applied to the American Express® Gold Card:

Bankrate staff insights

My decision to apply for the American Express® Gold Card was influenced by the boosted welcome offer I received through Bankrate's CardMatch tool. It substantially elevated the Amex Gold Card's offer: You may be eligible for as high as 100,000 Membership Rewards® Points — all for the same $6,000 spending requirement in the first six months. Welcome offers vary and you may not be eligible for an offer. I was already considering this card anyway, as its main rewards categories align with my natural spending, but the hefty welcome bonus definitely played a part in my final decision to choose it over the Chase Sapphire Preferred® Card and the Bank of America® Customized Cash Rewards credit card.

Madison Hoehn, Bankrate credit cards editor

Best card offer rankings: Intro bonus vs. long-term value

Now is the perfect time to pursue a travel welcome offer to save on any upcoming travel expenses now that issuers are beginning to roll out their valuable, summer offers. Although the Capital One Venture limited-time offer, Chase Sapphire Preferred’s highest limited-time offer and Southwest credit cards’ coveted Companion Pass offer have come and gone, we’re excited to see the Bank of America Customized Cash card’s boosted rewards rate offer holding strong, along with Chase's and American Express’ new wave of flagship travel card bonuses.

The Chase Sapphire Preferred card’s newest offer isn’t chart-topping like the limited-time offer earlier this year, but it’s a huge step up that keeps the same spending requirement as the typical bonus it recently offered. The revamped Chase Sapphire Reserve comes with a top-shelf welcome offer to match, but Amex launched improved offers for the Amex Platinum and American Express® Gold Card as well.

Keep in mind

The Platinum card’s offer could be one of the highest available at the moment, but it could be a complete gamble. The offer claims that “welcome offers vary” and that you may not be offered an intro bonus at all. The Sapphire Reserve’s incredible bonus is much more dependable. But it’s also worth noting that Chase discontinued their 25 percent and 50 percent Ultimate Rewards Points’ redemption value boost toward Chase travel in favor of specific “Points Boost” bookings — so your bonus might not be as valuable through Chase travel as before.

To get a sense of how these new offers stack up, we've ranked the bonus offers on this page by their estimated welcome offer value compared to other cards’ in the same category, according to Bankrate’s points and miles valuations. Since long-term value can be an equally weighty factor, we’ve also ranked these same card offers by their annual rewards and perk value for the average person so that you can quickly find the most well-rounded option for you.

Card name	Spending requirement	Estimated value*	Return on spend	Value ranking*
Sapphire Reserve for Business℠	Earn 200,000 bonus points after you spend $30,000 on purchases in your first 6 months from account opening and with more than $2,500 in annual value, there's no competition.	$4,000	13%	Highest-value business card offer
The Platinum Card® from American Express	You may be eligible for as high as 175,000 Membership Rewards® Points after spending $8,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.	$3,500	43%	Highest-value personal rewards card offer
Chase Sapphire Reserve®	Earn 100,000 bonus points + $500 Chase Travel℠ promo credit after you spend $5,000 on purchases in the first 3 months from account opening.	$2,500	50%	Better value than 99% of rewards cards
Bank of America® Travel Rewards credit card for Students	25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.	$250	25%	Highest-value student card offer
Chase Sapphire Preferred® Card	Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.	$1,500	30%	Better value than 95% of rewards cards
Bank of America® Customized Cash Rewards credit card	$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. Plus, an extra 3% cash back in your category of choice during the first year (6% cash back total; choice category still shares a $2,500 quarterly rewards spending limit with the 2% categories, then 1%).	$318	6%	Better value than 94% of cash rewards cards
Capital One Venture Rewards Credit Card	Earn 75,000 miles once you spend $4,000 on purchases within the first 3 months of account opening	$1,275	31%	Better value than 93% of rewards cards
Capital One Venture X Rewards Credit Card	Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel	$1,275	31%	Better value than 93% of rewards cards
Delta SkyMiles® Platinum American Express Card	Earn 60,000 Bonus Miles after you spend $3,000 in eligible purchases on your new Card in your first 6 months of Card Membership.	$1,080	27%	Better value than 90% of rewards cards
Blue Cash Preferred® Card from American Express	Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.	$250	8%	Better value than 83% of cash rewards cards
Hilton Honors American Express Surpass® Card	Earn 130,000 Hilton Honors Bonus Points after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership.	$780	26%	Better value than 73% of rewards cards
Ink Business Unlimited® Credit Card	Earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.	$750	12%	Better value than 63% of business cards
Capital One Savor Cash Rewards Credit Card	$200 Cash Back after you spend $500 on purchases within 3 months from account opening	$200	40%	Better value than 51% of cash rewards cards
Chase Freedom Flex®	Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening	$200	40%	Better value than 51% of cash rewards cards
Wells Fargo Active Cash® Card	Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months	$200	40%	Better value than 51% of cash rewards cards

*Bonus values and rankings are based on Bankrate’s points and miles valuations and the current bonus available on each card compared with the values of other cards’ bonuses in our rankings database.

While most cards typically have a 1-cent rewards value, we used Bankrate's 2025 points and miles valuations to calculate a travel card's typical ongoing rewards value. To determine the card’s estimated yearly value, we combined this average ongoing rewards value with its potential perk value each year, minus the annual fee. We’ve also ranked each of the cards on this page by this estimated yearly value compared to the other cards in its category.

Card name	Estimated yearly value**	Value ranking**
The Platinum Card® from American Express	$2,611	Highest average annual value for a personal rewards card
Chase Sapphire Reserve®	$1,932	Better value than 99% of rewards cards (Highest average annual value with its limited-time perks and credits)
Sapphire Reserve for Business℠	$2,422	Better value than 99% of business cards
Blue Cash Preferred® Card from American Express	$580	Better value than 98% of cash rewards cards
Capital One Venture X Rewards Credit Card	$1,306	Better value than 97% of rewards cards
Chase Freedom Flex®	$610 (assumes maximized spend in quarterly categories)	Better value than 96% of cash rewards cards
Chase Sapphire Preferred® Card	$994	Better value than 95% of rewards cards
Capital One Savor Cash Rewards Credit Card	$542	Better value than 92% of cash rewards cards
Capital One Venture Rewards Credit Card	$772	Better value than 88% of rewards cards
Delta SkyMiles® Platinum American Express Card	$792	Better value than 81% of rewards cards
Hilton Honors American Express Surpass® Card	$753 (excludes the possible Free Night Award, we estimate to be worth up to $570)	Better value than 77% of rewards cards
Wells Fargo Active Cash® Card	$450	Better value than 75% of cash rewards cards
Bank of America® Travel Rewards credit card for Students	$364	Better value than 75% of student cards
Ink Business Unlimited® Credit Card	$720	Better value than 71% of business cards
Bank of America® Customized Cash Rewards credit card	$425	Better value than 55% of cash rewards cards

**Average annual rewards and perk values and rankings are based on Bureau of Labor Statistics’ latest Consumer Expenditures data, an estimated annual spend of $22,500 for personal rewards and student cards and $48,000 for small business cards, Bankrate’s points and miles valuations and the combined current average annual value for each card compared with the average annual rewards and perk values of other cards in our rankings database. See the respective Bankrate credit card review for a breakdown of the individual rewards and perks of monetary value.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Expert tips: How to maximize your credit card bonus

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. Here are some tips and for making sure you don’t overspend and outpace the value of your new bonus with interest charges and fees:

Plan ahead

Assess the offer’s spending requirements and the value of the points you’ll earn. Bankrate’s points and miles valuations can help you understand the value of any potential bonus so you can redeem your rewards wisely.
Spend normally

Make timely payments and stay within your budget. If you spend beyond your means, you risk running up interest charges that can eat away at the value of your bonus or ongoing rewards.
Consider long-term value

New credit accounts lower your average account age, hurting your credit score. While bonuses can be attractive incentives, they shouldn’t be your sole reason for choosing a credit card. Avoid opening new cards just for the bonus unless these cards will help you in the long term.

These are great pointers for almost anyone, but micromanaging your rewards for the optimum transfer partner value isn’t for everyone. To help you get the most bang for your buck, senior Bankrate editor Courtney Mihocik shares her tried-and-true approaches to getting the most value from welcome bonuses:

Bankrate staff insights

"I almost never stretch my spending to reach a sign-up bonus. I have before in the past, but now it's definitely not part of my strategy.

To make the most of an offer, I wait till I have a large purchase coming up and then look for the best credit card to fit into my overall spending. Right now, we're building a backyard deck, so I applied for the U.S. Bank Shopper Cash Rewards® Visa Signature® Card.* Whatever money from my savings I was going to use for the materials will go toward paying off this card's balance, and the extra cash back from the sign-up bonus and my chosen retailers for the quarter can cover some patio furniture for the new space."

Courtney Mihocik, Bankrate senior credit cards editor

Learn more: How expert Ana Staples maximizes her rewards and sign-up bonuses

How Bankrate experts choose their cards with sign-up bonuses

Here’s how Bankrate writer Ryan Flanigan and senior editors Harlan Vaughn and Nouri Zarrugh chose their credit card welcome offers:

Bankrate staff insights

"I consider a card’s value in three parts: reward-earning potential, ongoing benefits and, of course, a welcome offer to get me through the door. Ultimately, I want a card to keep long-term. So, while a big welcome offer will get my attention, it’s the other card features that keep me loyal. That said, for cards I’m interested in, I’ll try to wait it out for a larger-than-usual incentive to make the leap.

For instance, I've had my eye on the Fidelity® Rewards Visa Signature® Credit Card* for a while because it had an intro APR offer on purchases (at the time I applied), 2 percent flat rewards rate and a few ongoing benefits. But it usually doesn’t have a welcome offer, so I only recently opened the card once it provided a welcome bonus. I deposited the bonus directly into my Roth IRA, and I'm using the intro APR for more wiggle room to pay off purchases."

Harlan Vaughn, Bankrate senior credit cards editor

"I take a different approach with cash back than I do with travel rewards. With a cash back bonus, it's all about value — if the bonus gives me good value back on my spending (and the card's ongoing rewards make sense for me), I don't hesitate to apply. I know I'll use the bonus eventually.

With a travel card, I tend to only apply when I have a specific trip in mind, especially if it's a card with an annual fee. I could save those points, sure, but since I only travel occasionally, they may sit a long time. I feel more comfortable when I know I'll be able to make quick use of them."

Nouri Zarrugh, Bankrate senior credit cards editor

“Getting a good sign-up bonus is one of the most important factors to consider when opening a new card in my opinion. 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 time frame. 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."

Ryan Flanigan, Bankrate credit cards writer

Ask Bankrate Staff

Ask the experts: Should I keep opening new cards so that I can earn more sign-up bonuses?

Erica Sandberg

Contributor, Credit Cards

Sign-up bonuses are fabulous. They enable you to earn cash back, points, or miles after you hit the minimum spend. However, many credit card companies have rules in place that prevent you from earning the bonus each time you open a new account with them. Check the issuer’s restrictions before you keep opening new credit card accounts. Still, even with an attractive bonus, you should only pursue the credit cards you need and will use. After all, every card you have must be managed, so if you have too many, you may unnecessarily complicate your life!

Thomas Nitzsche

Financial Educator, Debt and Credit

There’s nothing wrong with opening a new account to earn a bonus, but keep in mind two factors that can negatively impact your credit score. First, frequent hard pulls of your credit report, which are required as part of a new account application process, may lower your score. Second, having too many accounts with a short length of credit history, may also have a negative effect. For these reasons, it’s typically not a good idea to constantly open new lines of credit. Opening one or two new lines per year is usually fine, but take care to pay off balances in full every month so that you don’t negate the benefit of the sign-up bonuses by paying high interest rates on revolving balances.

Stephanie Zito

Contributor, Personal Finance

Sign-up bonuses are a great benefit of some new credit cards, but you’ll want to be strategic about how often you’re applying for new cards just to get the big bonus points. Opening new lines of credit does affect your credit score, so apply wisely — especially if you’re considering applying for a large line of credit like a mortgage where your score plays an important factor. Many banks have also instituted rules about frequent bonus earning. You may not be able to get a bonus more than once in a lifetime, or within a lengthy time period, on a specific card, so you’ll want to check these rules first. It’s not bad to have multiple cards, but it’s important to consider your short and longer term earning plan before you start applying.

Frequently asked questions about credit cards with sign-up bonuses

No, credit card sign-up bonuses are not tax deductible. In general, your sign-up bonus is not taxable if you have to spend money to earn it. However, the bonus could be considered taxable income if there isn’t a defined spending requirement.
A variety of cards with sign-up bonuses require minimal effort to qualify. On average, no-annual-fee cash back credit cards tend to offer the lowest spending requirement for a welcome bonus. Some require only $500 to $1,000 in spending to earn a decent bonus (typically a $200 value). There are a few credit card offers (mainly with no-annual-fee cash back cards as well) that temporarily increase your rewards rate or match the rewards you earn in a certain time frame, which easily fit within your regular spending.

A few co-branded cards and other less traditional cards may provide bonuses upon approval, but these offers may be taxable in some cases.
You could try to open several cards at once to get the sign-up bonuses, but this could be seen as “card churning” and could have negative consequences. Some card issuers have strict eligibility rules for welcome offers, and in the process, you could temporarily damage your credit with multiple credit applications.

For example, the Chase 5/24 rule states that if you’ve opened five credit cards from any issuer within the past 24 months, you will likely not be eligible to open a new Chase credit card. The issuer intends to use the rule to limit the number of “churners” who sign up for credit cards with the sole intention of earning a sign-up bonus.

Learn more: How long to wait before applying to another credit card

How we assess the best credit cards with bonus offers

250+

cards rated

50+

rewards programs valued

5000

data points analyzed

40+

perks evaluated

We select cards for “Best” credit cards pages based primarily on how cards score in our proprietary card rating system, our editors’ subjective assessment of card quality, card approval odds and credit requirements and unique card features.

Cards typically must score a minimum of 3.0 stars to be included on a “Best” list. However, we may include cards with scores below 3.0 if they have low credit requirements or unique features — despite their scores, these cards may still be among the “best” in certain categories. Card ratings are not influenced by advertisers or issuer relationships in any way.

Card selection and ordering may vary based on business considerations, including Bankrate visitor interest, site interactions and card application volume. Affiliate commissions (see how we make money), limited-time offers and a card’s general popularity in the product landscape may also influence which cards we feature on our pages and the order in which they appear. Bankrate’s editorial and business teams also strive to feature a variety of card types from various issuers.

Here’s a quick look at how our rating methodology breaks down for card card welcome offers:

Rewards & cash back card scoring factors

Overall Score

Value 65%
Flexibility 15%
Perks 15%
Customer experience 5%

Business card scoring factors

Overall Score

Value 40%
Flexibility 20%
Perks 20%
Customer experience 20%

Unless you’re focused on earning a specific type of rewards, the redemption value of a credit card bonus is typically more important than the raw bonus amount (after all, 100,000 points with one rewards program can be worth less than 60,000 points with another).

As such, we take into account not only how many points or miles a bonus offers, but also the redemption value of those rewards. The higher the its bonus redemption value, the more likely a card is to earn a spot on our list of the best credit cards with a welcome bonus.

We also consider the return on spend offered by each bonus. While a bonus may offer terrific value, it may not be a great option overall if it requires an inordinate amount of spending to earn.

For example, a card that offers a bonus worth $500 after $3,000 in spending (a 17 percent return on spend) is less likely to make our list of top picks than a card that offers a bonus worth $200 with only a $500 spending requirement (a 40 percent return on spend), despite the latter bonus carrying a much lower redemption value.
Along with a bonus offer’s return on spend, we consider how easy it will be for the average cardholder to meet the spending requirement. Even if a card bonus boasts a high-value bonus and a terrific return on spend, its spending requirement may be too high for many people to reach, limiting its appeal.

For example, a card that offers a bonus worth $5,000 after $20,000 in spending is less likely to make our list of top picks than a card that offers a bonus worth $1,000 after $4,000 in spending.
Since many cardholders looking for card bonuses are eager to earn rewards, a key criteria for a card’s inclusion in our list is whether it offers impressive rewards value. This includes a card’s average rewards rate, estimated annual rewards earnings, and reward redemption value.

To estimate a card’s average annual rewards earnings, we calculate its average rewards rate based on how much it earns in different bonus categories, as well as how closely those categories match the average person’s spending habits. In other words: Does the card earn rewards at a high rate in the most popular spending categories?

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2023 was $77,280 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $22,500.

This includes the following spending by category:
- Groceries: $6,000
- Dining out: $3,900
- Entertainment: $2,500
- Gas: $2,400
- Apparel and services: $2,000
Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 26 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine the value of a card bonus offer.

With these calculations complete, we assign each card a score based on how its average rewards earnings, bonus value, rewards rate and redemption value stack up against other cards in its primary category.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking.
We also rate all cards based on how their ongoing average APR compares to the average APR you’ll find other cards in their primary category. However, the impact of an especially high or low APR on a card’s overall score depends on its primary category.

For rewards-earning cards, this factor has only a minor influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance. That said, rewards-earning cards may get a solid boost in score and be more worthy of inclusion in our list if they also offer an intro APR on balance transfers or new purchases, since such offers aren’t always present on these cards.

More important to these cards’ scores and their inclusion in our list is how their annual fees influence their overall value. We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value.

Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value. However, if a card offers terrific value via its ongoing rewards and perks, it can earn a high score and a spot in our list even if it carries a high annual fee. After all, the highest rewards rates and most valuable perks are often found on cards with annual fees.

Interest rates and intro APR offers play a much larger role in a card’s score and whether it’s included in our list when the card is designed specifically for users looking to save on interest charges, such as dedicated balance transfer or low-interest cards.

Other fees considered include cash advance and late payment fees, along with penalty APRs.
Along with rewards value and cost, we consider other factors that could give cards great long-term value, like flexible rewards redemption and especially unique and valuable perks.

We rate rewards-earning cards based on the restrictions they impose on earning and redeeming rewards and consider this when deciding on a card’s inclusion in our list.

These restrictions could include only allowing users to earn a high rewards rate on a small amount of spending or requiring users to meet a certain earning threshold before they can redeem rewards. We also examine whether points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners.

We also evaluate each card’s perks based on their value, usefulness and uniqueness. Cards that offer top-tier benefits like airport lounge access or travel credits are likely to stand out, but we also aim to highlight cards that offer valuable under-the-radar perks, like cellphone protection or one-off credits for everyday expenses like dining and streaming services.

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.
1. “What is New Credit?” myFICO. Accessed on July 10, 2025.
2. “Consumer Expenditures 2023.” U.S. Bureau of Labor Statistics. Accessed on July 10, 2025.
3. “BofA Boosts Cash Back for New Cash Rewards Credit Cardholders.” Bank of America. Accessed on July 10, 2025.

The information about the Fidelity® Rewards Visa Signature® Credit Card, U.S. Bank Shopper Cash Rewards® Visa Signature® Card, U.S. Bank Cash+® Visa Signature® Card, Chase Freedom Flex®, Marriott Bonvoy Boundless® Credit Card and Citi Custom Cash has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

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