Getting a New Credit Card: How to Hit the Sign-Up Bonus without Overspending
I review credit cards and read credit card-focused newsletters diligently, but I have been holding off on signing up for new cards during most of 2024 and 2025. I have some top cards, though I miss the excitement of hitting a sign up bonus (iykyk).
My Approach
I start my research by perusing points-focused websites and Instagram accounts.
I tend to stick with a provider I already have so that I don’t have to download another app and create another log-in. Therefore, my search is narrowed to Chase and AmEx right now. One day, I’ll give Capital One a shot.
Next, I consider if I want to earn more points or a simpler cash back credit card. I tend to look for a better points or cash back earning rate than I currently have.
Lastly, I evaluate the sign-up bonus. If there is no sign-up bonus, then I’m definitely not opening the card. Cash back cards typically have lower sign-up bonuses than point-earning cards.
Will I spend at least the minimum needed to hit the sign-up bonus? I don’t want to overspend just to hit the bonus. Usually, these hover around $1,000 per month in the first 3, 4 or 6 months.
What card did I choose?
The AmEx Blue Cash Preferred card
Highlights
A cash back card with no annual fee for the first year, followed by a $95 annual fee in year 2 and beyond
6% cash back on supermarket purchases up to $6,000 per year
6% cash back on select streaming services
3% cash back on transit (including the subway, rideshare, and more)
Sign-up bonus is $250 cash for spending $3,000 in 6 months
You might wonder why I chose a cash back card. Well, I have been analyzing the number of points I earn annually and the number of points I spend annually and I’m approximately even - or I might earn too many points (what an “awful” problem to have haha).
Cash back is simple and straight-forward. In this economy, cash back at the supermarket is pretty awesome and $250 isn’t a lot of money, but it sure is a nice perk for spending $500 a month over 6 months!
What should you consider to meet a sign-up bonus?
Will I hit the minimum spend on the sign up bonus?
Is the sign-up bonus worth it?
Is the timing right? For example, are you traveling or are spending less or differently than normal
What can you swap to spending on this new card?
Can you pay for your partner, friend or family’s expenses if you won’t hit the sign-up bonus? They can always send you a Venmo or give you cash!
NEVER go into debt or ruin your credit score to earn a sign-up bonus.
What’s next?
I’ll share how I earned my sign-up bonus and what spending I put onto this card as soon as I receive it in the mail.
Want to learn more from me?
Have more questions? Follow Lauren on Instagram @pointsforchange
Disclaimer: I am not a financial advisor. My suggestions are simply suggestions and not financial advice. You should always consider your personal financial situation and what works best for you prior to making financial decisions because personal finance is… well… personal.
Affiliate links: On this page you may see referral links where Points for Change LLC is compensated in referral bonuses, free months to subscription services or other compensation for sharing links to products we love. All reviews are the opinion of the writer and not influenced by the companies mentioned.