Your Guide to Bonus Points Credit Cards
Looking to boost your points balance? A bonus points credit card could be just what you’re looking for. Quite simply, a bonus points credit card is a rewards card with a bonus points introductory offer. Offering a chunk of bonus points to cardholders who meet the card’s minimum spend requirements, this type of offer is a kind of sign-up bonus designed to entice new cardholders.
Why choose a bonus points credit card?
Wondering whether a bonus points offer is right for you? Here are some reasons why you may decide to apply for a credit card with a bonus points offer.
You’re planning a trip. With the right bonus points offer, you could really go places. You could redeem your points for flights, upgrades, or accommodation, making your trip more affordable, or a bit more special.
You have a purchase in mind. While flight rewards tend to offer more value, there are other ways to redeem your points. If you have something big you want to buy, bonus points could get you there faster.
You want to boost your balance. Even if there isn’t a reward that you want right now, you can stash your points away until you find the perfect fit. Just be aware that some programs have expiry dates on their points, so you may not want to hold on to them too long.
You need a new card. If you’ve decided a rewards card is right for you, why not take advantage of some bonus points on the side. As long as you can afford to spend and repay the minimum spend requirement, your bonus points are exactly that – a bonus.
How do you choose the best bonus points offer?
When comparing the options, you will notice different cards offer different bonus points amounts. Choosing the best bonus points offer should be easy. You just choose the one offering the most bonus points, right? While this should be the case, there are other factors to take into consideration.
Annual Fee: You will usually find cards with higher annual fees offer bigger bonus points. Before you apply, think about whether that annual fee is affordable. Also take into account how much value the card will offer as you pay out that annual fee year after year, with no points bonus on offer.
Type of Card: Rewards cards are separated by tiers, designed to suit different levels of spending. Classic cards typically offer the lowest earn rate in return for the lowest annual fee, platinum cards offer a higher earn rate for a higher annual fee, and black cards offer the highest earn rate for the highest annual fee. Bonus points are tiered accordingly. While you may want the card with the most bonus points, it may not suit your spending style – and you may not meet the income requirement either.
Minimum Spend: To be eligible for a bonus points offer, you will usually need to spend a certain amount on your card within a certain period of time. To make the offer work for you, make sure you can afford that minimum spend amount, and that you can pay it all off before it starts accruing interest.
Credit Card Bonus Point Special Offers - Frequently Asked Questions
Card providers are always looking to attract new customers. One of the easiest ways for them to do this is with an introductory offer. By offering a chunk of bonus points as a kind of sign-up bonus, card providers can entice new customers to apply.
But of course, that doesn’t mean there isn’t something in it for you as well. While your card provider gets you as a customer, you get your hands on a large number of rewards points that may otherwise have taken years to accumulate.
Back in the day, card providers used to hand out bonus points with no minimum spend required. Today, you need to work a little harder to get that boost to your points balance. Most bonus points credit cards have a minimum spend requirement, which stipulates how much you need to spend on your card to be eligible for the points bonus. Here’s how it usually works.
You’ve signed up for a credit card offering 100,000 bonus points. Before your card provider credits you with those points, you must spend at least $4,000 on your card within the first 90 days from card approval.
Alternatively, your card provider may require you to spend a certain amount each month over a specified period. Each month you meet the minimum spend, you will be credited with bonus points for that month.
With this type of offer, you may earn 25,000 bonus points per month for the first four months from card approval. To get those points, you have to spend $1,000 on your card each month. If you hit your spend target every month, you will be credited with 100,000 bonus points. If you only reach your target two months, you will be credited with 50,000 bonus points.
How quickly you get your bonus points depends on two important factors. First, you have to meet your minimum spend requirement. If you do that in the first week, you will get your bonus points a lot faster than if you take three months to meet the minimum spend. Secondly, your card provider will have guidelines regarding how long it takes for points to be credited to your account. In some cases, it might take 2-4 weeks and in others, it could take as long as 8-10 weeks.