Credit cards with a sign up bonus

Boost your rewards points account by applying for a credit card with a sign up bonus, available from most banks and often linked with Qantas and Velocity.

By Verified by David Boyd   |   Updated 24 Oct 2024

Comparing of 18 credit cards with a sign up bonus

American Express Velocity Business Card

Rewards program

Velocity Frequent Flyer

Points per $1 spent

1 point

Sign up bonus

150,000 points

Annual fee

$249.00 p.a. ongoing

Highlights

  • Get 150,000 Bonus Velocity Points upon applying by 6 November 2024, getting approval, and fulfilling the minimum spending requirement of $5,000 within 2 months of approval. Plus join the Virgin Australia Business Flyer program and enjoy a $250 Virgin Australia Business Flyer Travel Bank credit when you meet the eligibility criteria. The offer is valid for New American Express Card Members exclusively.
  • Accumulate 2 points for every $1 spent on Virgin Australia services and up to 1 point per $1 spent on other transactions. Earn 0.5 points per $1 on ATO and government expenditures.
  • Benefit from 2 complimentary single-entry passes to the Virgin Australia Lounge at chosen domestic airports annually.

Pros

  • Receive 150,000 bonus Velocity Points when you meet the criteria.
  • Earn up to 2 Velocity Points per $1 spent.
  • No pre-set spending limit and up to 51 days to pay for purchases.

Cons

  • The annual fee of $249 p.a.
  • Each employee card costs $99.
Westpac Altitude Black Credit Card (Altitude)

Rewards program

Altitude Rewards

Points per $1 spent

1.25 points

Sign up bonus

100,000 points

Annual fee

$150.00 for 1st year

Highlights

  • Earn up to 150,000 bonus Altitude Points. Receive 100,000 Altitude bonus points by spending $6,000 on eligible purchases within 120 days of card approval. Additionally, get 50,000 points after your first eligible purchase in year 2. Exclusions apply.
  • Initial $150 p.a. annual fee ($295 p.a. thereafter), applicable to new cardholders only.
  • Earn 6 Altitude points per $1 on Qantas, Jetstar, Singapore Airlines, and Emirates flights bought in Australia, subject to eligibility criteria.

Pros

  • Earn up to 150,000 bonus Altitude Points when you meet the criteria.
  • Additional savings with the $150 first-year annual fee ($295 p.a. thereafter).
  • Earn 1.25 points per $1 spent on eligible purchases
  • Get 2 complimentary lounge passes each year with Priority Pass.

Cons

  • The high annual fee of $295 p.a. after the initial year.
St.George Amplify Platinum Credit Card (Amplify)

Rewards program

Amplify Rewards

Points per $1 spent

1 point

Sign up bonus

100,000 points

Annual fee

$49.00 for 1st year

Highlights

  • Earn 100,000 bonus Amplify Points upon spending $3,000 on eligible purchases within 90 days from card approval, potentially valued at up to $450 in eGift cards. Exclusions apply.
  • Enjoy a discounted annual fee of $49 p.a. for the first year ($124 p.a. annual fee thereafter).
  • Earn 1 point for every $1 spent on eligible purchases.

Pros

  • The 100,000 bonus Amplify Points.
  • Earn uncapped Amplify Points per dollar on eligible purchases.
  • Comes with complimentary insurance (terms, conditions, exclusions, and eligibility criteria apply).
  • Compatible with Apple Pay, Google Pay, and Samsung Pay.

Cons

  • There is promotional balance transfer offer at the moment.
Westpac Altitude Platinum Credit Card (Qantas)

Rewards program

Qantas Frequent Flyer

Points per $1 spent

0.5 points

Sign up bonus

70,000 points

Annual fee

$119.00 for 1st year

Highlights

  • Receive up to 80,000 bonus Qantas Points. Acquire 60,000 Qantas Points in the first year upon spending $4k+ on eligible purchases within the initial 90 days from new card approval, and an additional 20,000 points after your first eligible purchase in the second year..
  • Initial $119 p.a. annual fee followed by $175 p.a. thereafter (Plus a $75 Qantas Rewards opt-in annual fee).
  • Earn 0.5 Qantas points per $1 spent on eligible purchases.

Pros

  • Receive up to 80,000 bonus Qantas Points when you meet the criteria.
  • Additional savings with the $119 first-year annual fee ($175 p.a. thereafter).
  • Comes with complimentary insurance covers which include overseas medical and purchase security.

Cons

  • Only up to 45 days interest-free on purchases.
St.George Amplify Signature Credit Card (Amplify)

Apply by 30 November 2024

St.George Amplify Signature Credit Card (Amplify)

Rewards program

Amplify Rewards, Amplify Qantas

Points per $1 spent

1.5 points

Sign up bonus

150,000 points

Annual fee

$199.00 for 1st year

Highlights

  • Up to 150,000 Bonus Amplify Rewards Points earned upon spending $12,000 on eligible purchases within the first 12 months from card approval.
  • Initial card fee of $199 for the first year ($295 p.a. thereafter).
  • Comes with complimentary overseas travel insurance coverage for up to 6 months.

Pros

  • The 150,000 bonus Amplify Rewards Points.
  • Save $96 with the $199 card fee for the first year.
  • Enjoy 2 complimentary Priority Pass lounge visits each year when you enroll in Priority Pass.
  • Comes with concierge services.

Cons

  • After the initial year, the annual fee is $295 p.a.
  • There is no promotional balance transfer offer at the moment.
St.George Amplify Platinum Credit Card (Qantas)

Apply by 30 November 2024

St.George Amplify Platinum Credit Card (Qantas)

Rewards program

Amplify Qantas

Points per $1 spent

1 point

Sign up bonus

70,000 points

Annual fee

$99.00 for 1st year

Highlights

  • Up to 50,000 bonus Qantas Points earned upon spending $3,000 on eligible purchases within 90 days from card approval. Exclusions apply.
  • Pay an annual fee of $99 for the first year ($124 thereafter).
  • Earn 0.5 points per $1 spent (uncapped).

Pros

  • The 50,000 bonus Qantas Points.
  • Discounted annual fee on the first year.
  • Complimentary travel and purchase insurance.

Cons

  • Points earning rate of 0.5 points is lower than others.
Bank of Melbourne Amplify Platinum Credit Card (Qantas)

Rewards program

Amplify Qantas

Points per $1 spent

0.5 points

Sign up bonus

50,000 points

Annual fee

$99.00 for 1st year

Highlights

  • Up to 50,000 bonus Qantas Points earned upon spending $3,000 on eligible purchases within 90 days from card approval. Exclusions apply.
  • Pay an annual fee of $99 for the first year ($124 thereafter).
  • Earn 0.5 points per $1 spent (uncapped).

Pros

  • The 50,000 bonus Qantas Points.
  • Discounted annual fee on the first year.
  • Complimentary travel and purchase insurance.

Cons

  • Points earning rate of 0.5 points is lower than others.
BankSA Amplify Platinum Credit Card (Qantas)

Rewards program

Amplify Qantas

Points per $1 spent

0.5 points

Sign up bonus

50,000 points

Annual fee

$99.00 for 1st year

Highlights

  • Up to 50,000 bonus Qantas Points earned upon spending $3,000 on eligible purchases within 90 days from card approval. Exclusions apply.
  • Pay an annual fee of $99 for the first year ($124 thereafter).
  • Earn 0.5 points per $1 spent (uncapped).

Pros

  • The 50,000 bonus Qantas Points.
  • Discounted annual fee on the first year.
  • Complimentary travel and purchase insurance.

Cons

  • Points earning rate of 0.5 points is lower than others.
BankSA Amplify Signature Credit Card (Amplify)

Rewards program

Amplify Rewards

Points per $1 spent

1.5 points

Sign up bonus

150,000 points

Annual fee

$199.00 for 1st year

Highlights

  • Earn up to 150,000 Bonus Amplify Rewards Points over 2 years when you spend $12,000 on eligible purchases within the first 12 months from card approval.
  • $199 p.a. annual fee for the first year ($295 p.a. annual fee thereafter).
  • Includes complimentary overseas travel insurance for up to 6 months

Pros

  • Enjoy 2 complimentary Priority Pass lounge visits each year when you enroll in Priority Pass.
  • The 150,000 bonus Amplify Rewards Points.
  • $199 p.a. annual fee for the first year ($295 p.a. annual fee thereafter).
  • Includes complimentary overseas travel insurance for up to 6 months

Cons

  • After the initial year, the annual fee is $295 p.a.
  • There is no promotional balance transfer offer at the moment.
Bank of Melbourne Amplify Signature Credit Card (Amplify)

Apply by 30 November 2024

Bank of Melbourne Amplify Signature Credit Card (Amplify)

Rewards program

Amplify Rewards

Points per $1 spent

1.5 points

Sign up bonus

150,000 points

Annual fee

$199.00 for 1st year

Highlights

  • Receive up to 150,000 bonus Amplify Points when you apply by 30 November 2024, get approved, and spend $12,000 on eligible purchases within the first 12 months of card approval. Terms and Conditions apply.
  • Discounted first-year annual fee of $199.
  • Includes complimentary overseas travel insurance for up to 6 months

Pros

  • The 150,000 bonus Amplify Rewards Points.
  • Enjoy 2 complimentary Priority Pass lounge visits each year when you enroll in Priority Pass.
  • Discounted first-year annual fee of $199.
  • Includes complimentary overseas travel insurance for up to 6 months

Cons

  • There is no promotional balance transfer offer at the moment.
  • After the initial year, the annual fee reverts to $295 p.a.
Qantas Premier Platinum Credit Card

Rewards program

Qantas Frequent Flyer

Points per $1 spent

1 point

Sign up bonus

70,000 points

Annual fee

$349.00 for 1st year

Highlights

  • Earn up to 100,000 bonus Qantas Points. Receive 70,000 bonus Qantas Points when you spend $3,000 or more on eligible purchases within 3 months from card approval. Plus an additional 30,000 bonus points if you have not earned Qantas Points with a credit card in the last 12 months. Terms and Conditions apply.
  • Enjoy 0% on Balance Transfer for 12 months with no Balance Transfer fee. Reverts to Cash Advance rate, thereafter. No interest-free days apply on retail purchases while you have a balance transfer.
  • Save with the reduced annual fee of $349 p.a. for the first year. An ongoing annual fee of $399 p.a. applies in the 2nd year.

Pros

  • Earn up to 100,000 bonus Qantas Points when you meet the criteria.
  • 0% p.a. for 12 months on balance transfers.
  • Additional savings with the $349 first-year annual fee.
  • Comes with complimentary travel insurance.

Cons

  • The annual fee increases to $399 p.a. after the initial year.
Bank of Melbourne Amplify Platinum Credit Card (Amplify)

Rewards program

Amplify Rewards

Points per $1 spent

1 point

Sign up bonus

100,000 points

Annual fee

$49.00 for 1st year

Highlights

  • Earn 100,000 bonus Amplify Points upon spending $3,000 on eligible purchases within 90 days from card approval, potentially valued at up to $450 in eGift cards. Exclusions apply.
  • Enjoy a discounted annual fee of $49 p.a. for the first year ($124 p.a. annual fee thereafter).
  • Earn 1 point for every $1 spent on eligible purchases.

Pros

  • The 100,000 bonus Amplify Points.
  • Earn uncapped Amplify Points per dollar on eligible purchases.
  • Comes with complimentary insurance (terms, conditions, exclusions, and eligibility criteria apply).
  • Compatible with Apple Pay, Google Pay, and Samsung Pay.

Cons

  • There is promotional balance transfer offer at the moment.
Coles Rewards Mastercard

Apply by 5 November 2024

Coles Rewards Mastercard

Rewards program

flybuys

Points per $1 spent

2 points

Sign up bonus

50,000 points

Annual fee

$99.00 p.a. ongoing

Highlights

  • Receive 50,000 Flybuys bonus points upon spending $3,000 or more on eligible purchases within 90 days of approval. Terms and Conditions apply.
  • Earn 2 points per $1 on eligible spend—this is in addition to the regular Flybuys Points earned from other partners.
  • Pay $0 in international transaction fees for purchases made online or overseas.

Pros

  • Get 50,000 Flybuys bonus points when you meet the criteria.
  • Collect 2 points per $1 on eligible spend – that’s on top of the usual flybuys points from other partners.
  • Access to the Coles concierge service.

Cons

  • The annual fee of $99 p.a.
  • No international travel insurance.
BankSA Amplify Platinum Credit Card (Amplify)

Rewards program

Amplify Rewards

Points per $1 spent

1 point

Sign up bonus

100,000 points

Annual fee

$49.00 for 1st year

Highlights

  • Earn 100,000 bonus Amplify Points upon spending $3,000 on eligible purchases within 90 days from card approval, potentially valued at up to $450 in eGift cards. Exclusions apply.
  • Enjoy a discounted annual fee of $49 p.a. for the first year ($124 p.a. annual fee thereafter).
  • Earn 1 point for every $1 spent on eligible purchases.

Pros

  • The 100,000 bonus Amplify Points.
  • Earn uncapped Amplify Points per dollar on eligible purchases.
  • Comes with complimentary insurance (terms, conditions, exclusions, and eligibility criteria apply).
  • Compatible with Apple Pay, Google Pay, and Samsung Pay.

Cons

  • There is promotional balance transfer offer at the moment.
Qantas Premier Everyday Credit Card

Rewards program

Qantas Frequent Flyer

Points per $1 spent

0.75 points

Sign up bonus

8,000 points

Annual fee

$99.00 p.a. ongoing

Highlights

  • Receive a potential boost of 8,000 bonus Qantas Points upon successful application. Gain 2 bonus Qantas Points for every $1 spent on qualifying purchases within 4 months post-card approval. Applicable Terms and Conditions.
  • Enjoy a modest annual fee of $99.
  • Benefit from a 0% p.a. rate for 12 months on balance transfers, which then transitions to the Cash Advance Rate.

Pros

  • Earn up to 8,000 bonus Qantas Points when you meet the criteria.
  • The low annual fee of $99 p.a.
  • Earn 0.75 Qantas Points per $1 spent on domestic purchases up to $3,000 per statement period.
  • Comes with complimentary overseas travel insurance.

Cons

  • There is a 3% foreign transaction fee.

If you've ever read a travel blog or watched a travel vlog, then you'll know what you can do with credit card sign up points. Read on for more information on how they work.

What is a credit card sign up bonus?

A credit card sign up bonus is an incentive offered by card issuers to new cardholders, in an effort to gain new business by attracting those who have never held a card before, or by wooing others away from their existing card.

In the case of rewards points and frequent flyer points cards, the bonus normally takes the form of tens of thousands of points, which would normally take years of card spending to acquire.

Since points can usually be redeemed for account credits (effectively cash), retail spending vouchers and airline flights or seat upgrades, they are a very alluring incentive.

Sign up vs first purchase vs welcome bonus

These two terms are in fact used more or less interchangeably. Some banks also call these offers their welcome bonus.

  • Sign up bonus. While the term 'sign up bonus' implies that all that is required is for the new cardholder to apply and be approved in order to earn the bonus, the fact is that most offers of this kind demand that the new cardholder spends a qualifying amount within a short period after card account approval.
  • First purchase bonus. A typical condition would be for the cardholder to spend $3,000 using the card within 90 days of account approval.
  • Welcome bonus. A generic term that describes any kind of credit card sign up or first purchase bonus points offer.

These targets are rarely difficult to achieve, and are ranked according to card level, with the more expensive, black and premium cards offering larger bonuses and usually having higher spending targets, in line with the likely income profile of the cardholder.

How to compare sign up bonus offers

While some people are only interested in whatever card has the biggest sign up bonus, this is what to look for when comparing deals.

  1. Firstly you should compare the various interest rates and also find a deal that offers you the biggest savings if there are promotional interest rates on offer.
  2. You must also take into consideration how long the introductory deal lasts, and how it changes when the honeymoon period expires. Sign up bonuses look great in the short term, but you also need to plan ahead to make sure you get the best deal for the long term.
  3. Most sign up bonuses involve a single bonus of points added to your account. So when you are comparing this type of bonus, consider how many points are on offer, what they can be redeemed for and how many points you need to redeem for something you actually want, e.g. flights, hotels, electronics, etc.
  4. Check if there are any birthday bonuses. In addition to the welcome bonus, some cards have a birthday bonus every year on the anniversary of your card opening as an incentive to keep using it.

Credit card bonus offer requirements

In order to qualify for the sign up bonus by meeting the minimum spend criteria, only certain types of spending will count. Typically, the same conditions apply to bonus points as those applied to ongoing points earning. This means that cash and cash equivalent transactions are excluded from both points earning and sign up bonus points minimum spend targets. The types of transactions almost certain to be excluded are:

  • Balances transferred from another card or loan
  • Cash advances
  • Purchases of traveller's cheques or foreign currency banknotes
  • Credit card fees (including annual fees) and interest charges

Other types of payment which may be excluded by some (but not all) card issuers are:

  • Payments made from a credit card using BPAY
  • Government charges such as payments for car registration or to Australia Post (although there are cards that earn points on government spend)
  • Purchases of gift cards
  • Gambling transactions

Churning credit card points offers

Credit card 'churning' is a strategy used by some people to maximise the benefit derived from sign up bonus point offers. Churning can take two forms: applying for multiple sign up bonus cards at the same time, or applying for cards in rapid succession, waiting only until the bonus points have been received before cancelling the card account and applying for another card. But these procedures are fraught with risk. Here's why.

  • There are limitations on who can qualify. Firstly, most card issuers will not grant the sign up bonus to 'new' cardholders who currently hold another of their rewards points cards, or who have held one of their rewards cards in the previous 12-18 months. So taking a scattergun approach to sign up bonuses could end up severely limiting your future rewards card choices.
  • It may impact your credit score. Secondly, applying for many cards at the same time, or in quick succession, can seriously damage your credit score. Each credit card application results in a 'hard' credit enquiry by the prospective lender being recorded in your credit history file. These hard enquiries have a negative effect on your credit score, and could make it more difficult for you to be approved for credit in the future. Anecdotally, many churners report little impact on their score because they manage their accounts well.
  • You may spend more than you should. Finally, striving to meet too many spending targets on separate cards could see you committing to spending more than you can really afford, leading to credit card account balances you cannot pay off in full by the due date. The resulting interest charges will seriously reduce the benefit of any sign up bonuses you might earn.

Are credit card bonus offers worth it?

There's no denying that there are lots of points to be earned if you're prepared to spend time chasing sign up bonuses, making card applications, monitoring your card usage and cancelling cards. But should you? Consider these questions before applying.

  • Will you be able to meet the spending target? If you will be buying things that you don't need just to hit a welcome bonus spending target, then it's probably not a great value proposition. It would be better if you can divert your normal spend onto the new card and hit the target without having to spend more than usual. Note that Amex cards are not as widely accepted as Mastercard and Visa, which may complicate matters.
  • Will you use the points? If you have plans to travel and would be able to redeem the points for upgrades, then the sign up bonus could be very useful. Remember that rewards programs can devalue without warning, meaning your points may be worth less in future. Furthermore, some rewards points expire if not used. Although it's easy to avoid, points expire after 18 months of inactivity at Qantas (it's 24 months at Velocity).
  • Are there other benefits you can use included with the card? It's not unusual for credit cards with a sign up bonus to come with other perks and benefits like airport lounge access and travel insurance. Will having these available be useful?
  • Do you mind paying the annual fee? Assuming you plan on holding on to the card, pay attention to the annual fee. If it has been waived for the first year, check what it will revert to. Will it make sense to keep the card if you have to pay the annual fee?

Pros and cons of credit card points offers

If you are someone who regularly travels either domestically or internationally, then a sign up bonus offering frequent flyer points may be exactly what you are looking for. However, before deciding on the card you want to apply for you should carefully consider which airline you fly with most, which airlines fly the routes you travel most and even what airlines fly from your local airport.

Compare your credit card options before settling. You'll thank yourself later.

Pros

  • Boost your rewards account. A single credit card bonus can make a big difference in a relatively short space of time.
  • Make a dream trip a reality. If you want to fly at the pointy end but can't justify spending cash for business or first class seats, bonus points can make it happen.
  • Offset the annual fee. If you find a credit card that suits you but the high annual fee is more than a little unpleasant, a sign up bonus can go a long way to offsetting the annual fee in the first year, if not obliterating it altogether. Just make sure that you will still be getting enough value to make the card worthwhile once you hit the second year.

Cons

  • They don't come free. Banks will not transfer your sign up bonus until you've met the spending target, which means you have to spend with the card.
  • Not every purchase is eligible for the spending target. For example, balance transfers and cash advances will not count.
  • You could be tempted to spend more. It's not a great idea to spend more than you can really afford, just to meet a sign up bonus spending requirement. If you end up with a balance you can't repay, and resulting interest charges, you may wipe out all the benefit of those bonus points.

Learn about credit card sign up bonuses

Find out how credit card sign up bonuses work and what you need to do to get yours.

  • FAQs

  • Tips

Will I get the sign up bonus automatically, or do I have to meet other conditions?

The terms ‘sign up bonus’ and ‘ first purchase bonus’ are often used interchangeably. In fact, there is a difference. A very small number of cards will give you the sign up bonus as soon as your account is approved — no spending required — and this is a true ‘sign up bonus’. But for most cards, the sign up bonus is in fact a ‘first purchase bonus’; that is, you will be required to fulfil certain spending conditions (e.g. make $3,000 worth of purchases in the first three months of holding the card) before you can receive the bonus.

Can I get the sign up bonus more than once?

Yes, but usually only by applying for a different credit card. The sign up bonus is a one-off incentive for new customers. You will receive the bonus once only, either when your account is approved or, more normally, when you meet the spending conditions. Most sign up bonus offers exclude existing customers who currently have, or have previously held, another card from the same issuer. This exclusion can often extend to customers of another bank in the same group (e.g. the wide-ranging Westpac / St.George group). However, in some cases you will be able to qualify for the sign up bonus if a reasonable period of time (e.g. 12 or 18 months) has elapsed since you last held one of the issuer’s cards.

If I have a bank-issued AmEx companion card, can I apply for a card issued by AmEx itself and get the sign up bonus?

Yes. Amex companion card holders are not excluded from Amex’s own sign up bonus offers. American Express will still allow you to qualify for a sign up bonus if you apply for a directly-issued American Express card, even though you may already have, or recently had, a companion Amex card issued by another bank.

When the sign up bonus is frequent flyer points, do I need to have a frequent flyer account before applying?

No. Your card issuer will normally ask you to notify them of your frequent flyer number within a given period (e.g. four weeks) after your new card is approved. However, you will need to have the appropriate brand of frequent flyer account before you can receive any bonus points or points earned on normal spending:

  • Qantas Frequent Flyer. There is a fee payable to join the Qantas Frequent Flyer program, but many card issuers will pay this fee on your behalf if you are not already a member.
  • Virgin Velocity and Emirates Skywards. Both programs are free to join, so it would be a good idea to open a points account at the same time if you are applying for a credit card with a sign up bonus for these programs.

How long does it take for sign up bonus points to hit my account?

Sign up bonus points involving a target spending amount will normally be credited to your points account within two or sometimes three months of the spending criteria being met. For example, if you are required to spend $3,000 in the first three months after card approval, and you don’t reach the spending target until the end of the third month, your bonus points may not arrive until six months after you first get your new card.

Do cash advances and balance transfers count towards eligible spend for the sign up bonus?

No. These two transaction types are considered to be ‘cash equivalents’, and will not be counted as part of your qualifying spending. You must make actual purchases of goods or services in order to meet any spending criteria.

Other types of transactions likely to be excluded include:

  • Credit card account annual fees
  • Credit card account interest
  • Purchases of foreign currency banknotes or traveller's cheques
  • Gambling transactions

Some cards will also exclude any BPAY payments made using the card, and any premiums paid for the bank’s proprietary brand of credit card insurance.

Can I apply for the same sign up bonus credit card more than once?

It would be very difficult to do this within a short time frame, since most card issuers disqualify from earning a sign up bonus anyone who has held one of their rewards cards in the past 12 or 18 months. You could certainly try again a year or two after cancelling your first sign up bonus card, but expect your previous activity in cancelling the card to raise a red flag with the card issuer, who may hesitate to approve your application a second time.

When does the clock start on the spending requirement for a credit card sign up bonus?

The clock starts ticking as soon as your application is approved, not some time later when your card arrives in the mail. So it means you need to start spending as soon as you receive the card if you're going to meet the target (unless you have a major purchase in mind).

And since some card issuers advise the time limit in days (e.g. within 90 days of card approval) while other do it in months (e.g. within two months of card approval) it's best to assume that each month has only 30 days and get your spending done in 60 or 90 days, depending on the requirement.

Can I close my credit card account after the bonus points have been deposited?

Yes you can. Once the points arrive in your points or frequent flyer account they won't be taken back. But while the expiry of the frequent flyer points is dependent on the rules of the frequent flyer program, the card issuers can set their own rules about the expiry of their rewards points. You may find that your points expire as soon as, or shortly after, you close your credit card account. So make sure you redeem your points before you close your credit card account.

Be aware that closing your credit card account will also lift your credit utilisation rate (your total borrowings as a percentage of the credit available to you), which could temporarily reduce your credit score.

Also, since you will have paid the first year's annual fee upfront once your card application was approved, you may as well retain the card for the remainder of the 12 months in order to take advantage of ongoing reward points and any attached complimentary benefits.

Are there any credit cards with no annual fee and a sign up bonus?

This is an unlikely combination, since there aren't too many 'no annual fee' rewards or frequent flyer credit cards in the first place. The card issuer is already effectively giving away cash in the form of sign up bonus points, and to expect them to do that without asking you to commit to an annual fee is probably unrealistic.

But there are sign up bonus cards with a low annual fee (starting at $95 p.a.) and others with a discounted annual fee in the first year.

Is there an average sign up bonus?

Sign up bonuses are limited-time offers, and may appear or disappear, or go up and down, on the same card. It's also the case that more expensive premium cards (i.e. those with higher points earning rates, more complimentary benefits and a higher annual fee) will tend to offer larger sign up bonuses. Additionally, rewards points in different programs are not directly comparable, since different programs will require varying numbers of points for the same redemption value. Finally, rewards points bonus offers tend to be larger than frequent flyer points bonus offers, simply because rewards points are on the whole less valuable than frequent flyer points. Cards which offer a choice between earning frequent flyer points and in-house rewards points will usually offer twice as many bonus rewards points when compared with bonus frequent flyer points.

So there's no such thing as an 'average' sign up bonus. Bonuses typically start at 15,000 rewards points (or 7,500 frequent flyer points) and rise to 200,000 rewards points (or 100,000 frequent flyer points) depending on the card.

If there's a spending target, be sure you can meet it

Although in the past it was possible to obtain bonus points simply for signing up for a card, it is now more or less universal for the card issuer to require a spending target to be met within the first two or three months of holding the card. The target may not be onerous (e.g. a requirement to spend $3,000 in the first three months) but you need to stay alert to make sure you don't fail to meet the target and miss out on those valuable points as a result.

Couple your sign up bonus with a balance transfer offer

If you need to make a balance transfer to switch your debt from one card to another, a card with a combined balance transfer offer and sign up bonus could be the right choice for you. Finding a card with a 0% rate on balance transfers allows you to pay off your debt with less interest, but to get the savings you need to repay the debt within the bonus period and avoid the higher rates when the promotion expires.

Don't overlook the interest rate

Interest rates should always be taken into consideration, especially if you think there will be times when you don't pay off your account balance in full at the end of the month. The lower the interest you have to pay, the more money you are going to save over the long haul. For this reason, you need to fully understand the rates being offered. If there is a promotional interest rate offered (e.g. 0% on purchases for the first six months) make sure you know what the rate will be after any promotional period expires. And if you expect that you will regularly be carrying an interest-bearing balance on your card, you would be better off shunning rewards points and sign up bonuses, and instead look for a card with an ongoing low interest rate.

Apply for a sign up bonus card when you are planning a major purchase

If you're not sure about your ability to meet minimum spend criteria by just making your everyday purchases, the best time to apply for a sign up bonus card is when you are planning a major purchase, such as a holiday, new furniture or appliances, or the latest technology. It can also work well just before the Christmas shopping period, or events like Black Friday.

Greatest benefit for regular travellers with finances in order

If you are the type who enjoys travelling, and assuming you pay off your account in full each month, then a bonus of many thousands of points can benefit you more than a low interest rate. You may already have a great credit card with everything you could possibly need. However, there is nothing wrong with switching if there is a sign up bonus that could give a serious boost to your points account.

Check eligibility requirements

Whether you will qualify for a card with a sign up bonus depends largely on your credit score and history, as well as your age and income. Not all credit cards have the same requirements, so make sure you consider all your options and check that you actually meet, and ideally exceed, their minimum requirements for approval. After applying online, you will typically receive an answer within a matter of minutes, although some banks may be slower than others.

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