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4.4. Bonus points

A lot of rewards credit cards offer bonus points for new customers when they apply for the card and spend a certain amount of money within the first few months.

A frequent flyer credit card could offer 60,000 bonus points to customers who sign up before 31st December of that year, are approved and spend $3,000 in the first 90 days they have the card.

If they meet these conditions, their frequent flyer account will be credited with these points after the 90 days end.

If you factor in the cost of using the card (including any interest charges from purchases and the annual fee), then you can figure out how much value you will get out of this type of promotion. In some cases, bonus points could get you a return flight overseas, hundreds of dollars in gift cards or even pay for the card’s annual fee for 1-3 years.

REMEMBER: You can cancel a credit card at any time. So if you get bonus points but then change your mind about the card, you can use those points then close the account if you want to.