Hoping to Earn a New Cardmember Bonus? Answer This Question First

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New cardmember bonuses require you to meet spending requirements. Be sure to determine if that’s possible before signing up for a card. 

Many credit cards offer a bonus if you sign up as a new customer. The rewards cards that offer these bonuses can be pretty generous, with some cards offering hundreds or even thousands of dollars worth of cash back, miles, or points.

But if you’re hoping to earn a bonus from signing up for a new credit card, there’s one important question you need to ask yourself before you move forward.

The answer to this question will determine whether the cardmember bonus is within reach

Before you even consider signing up for a credit card with the goal of getting the bonus for new cardmembers, you need to read the details to find out what the spending requirements are to become eligible. Then you need to ask yourself if you can meet those requirements with your everyday spending, without charging a lot more on your credit card than you normally would.

See, cards offering bonuses usually mandate you spend a generous amount of money on the card in a short period of time. You might have to spend $500 or $1,000 or even more within the first three months of opening up the new credit card.

If you do not normally spend that much on your cards, that’s a huge problem. Either you will not get the cardmember bonus you had hoped for since you didn’t meet the requirements or you will end up spending more on your card than you normally would just to get the bonus.

Spending more than normal could leave you struggling to pay off your card and getting stuck carrying a balance and paying interest charges. You could also impair your ability to stay on budget in the future since you’d now have a credit card payment coming out of your income.

You do not want to find yourself missing out on a bonus you signed up for or losing money just to earn a new cardmember bonus. So ask yourself if you’ll be able to meet the target spending requirement before opening any card.

How to meet your spending requirements to earn a new cardmember bonus

If you really want to get a reward for opening a new card and you find you’d struggle to meet the spending requirements most credit card companies require, there are ways to be strategic about hitting your target.

One option is to wait until you have a huge purchase coming up, such as a new appliance. You can time your card opening to your purchase so you can use that spending to meet your limit. Or, if you spend a lot on the holidays, you can open up your new card right before the festive season.

Charging everyday expenses you ordinarily wouldn’t could also work, if it’s feasible. For example, your utility company might let you charge your payments, which could help you get over the threshold.

Just be sure you can afford to pay your bill in full even as you try to increase your balance so you don’t end up costing yourself a lot of money in your efforts to earn a bonus. Credit card companies create these bonuses to entice you to charge more on the cards, so be smart about how you earn the rewards.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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