What is a sign-up bonus?
Reviewed by the CompareMyCard editorial team · Last updated 14 August 2026
A sign-up bonus, also called a welcome offer, is a one-time reward for opening a new card and meeting a spending requirement within a set time window, commonly “spend $4,000 in the first 3 months” in exchange for a cash, points, or miles bonus.
A worked example
A card might offer “earn $200 cash back after you spend $500 on purchases in the first 3 months.” If you were already planning to spend $500 in that window on normal expenses, this is close to free money. If you'd have to spend beyond your normal budget to hit the requirement, the bonus isn't worth going into debt for.
Why it matters when choosing a card
The sign-up bonus is often the single biggest dollar amount you'll get from a card in year one, sometimes bigger than a full year of ongoing rewards. But it's a poor reason alone to pick a card, check the ongoing rewards rate and annual fee too, since you'll likely keep the card for years after the bonus is long spent.