What Is an Intro Bonus on a Credit Card?

How Does a Credit Card Intro Bonus Work?

An intro bonus is a lump-sum reward—usually cash back, points or miles—offered when you meet the initial spending requirement on a rewards credit card. For example, you might receive an offer to earn $200 cash back after spending $1,000 in the first three months. Once you meet the requirement, the bonus is typically credited to your account within one to two billing cycles.

Depending on the card, the bonus could appear as:

• Cash back (statement credit or deposit)
• Points or miles (for travel, merchandise or gift cards)
• Hotel stay

Most intro bonus credit cards require you to qualify by spending a minimum amount within a set timeframe, typically three to six months from opening your account. Purchases must post to your account within that timeline. Transactions that are pending or refunded won't count.

A few cards may offer bonuses for simply opening the account, but these are less common.

Generally, only regular purchases count toward a card's intro bonus. These transactions typically do not count:

• Balance transfers
• Cash advances
• Cash equivalent transactions, like wire transfers or money orders
• Payments made using peer-to-peer payment apps
• Fees and interest charges
• Refunds for returned purchases

Most issuers impose rules to prevent customers from earning multiple bonuses on the same card. For example, you may only earn a bonus once per card or card family every 24 to 48 months. Some issuers limit you to one lifetime bonus per card.

Learn more: The Best Way to Redeem Credit Card Rewards

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How to Earn an Intro Bonus

To earn a credit card intro bonus, you only need to follow a few key steps.

1. Apply for a card that offers an intro bonus. Look for a credit card that fits your spending habits and rewards goals. You must apply as a new cardholder. Product upgrades may not qualify.
2. Spend the required amount on your card within the set timeframe. You'll have a set period, usually three to six months, to meet the minimum spend. With some cards, authorized-user spending counts too. The countdown starts the day your account is approved, not when you activate or receive your card.
3. Make sure transactions post in time. A purchase has to be posted to your account during the bonus period. Some merchants may delay posting, especially with backordered or shipped items.

Tip: Add your card to your digital wallet after approval to start earning toward the bonus right away. This will allow you to make purchases before the physical card shows up in your mailbox.

Tips for Earning an Intro Bonus

Earning a bonus is easier with some planning. Here are some helpful strategies:

• Time your application with a large purchase. Big purchases like back-to-school shopping, travel or home repairs can help you meet the spending requirement without going over budget.
• Choose a card with a realistic spend threshold. Choose a bonus that aligns with your typical monthly spending so you aren't tempted to overspend just to earn rewards.
• Consider the annual fee. While it doesn't help you meet the spending requirement, it does reduce the credit you have available for spending.
• Watch the deadline. The clock starts when your account is approved, not when you activate or receive the card. Mark your calendar with the bonus expiration date. Aim to meet the requirement a week or two early to be safe.
• Understand which transactions count. Check the card issuer's terms for transactions that are excluded from the spending requirement.
• Watch for restrictions. If you've had the card before, check to see if you're eligible before applying. Some credit card issuers limit intro bonuses to one every 24 to 48 months.

Learn more: The Do's and Don'ts of Credit Card Intro Bonuses

Frequently Asked Questions

The Bottom Line

Intro bonuses can provide hundreds of dollars in rewards, but only if you qualify and meet the spending requirements. If you're looking for a rewards credit card with a welcome bonus, compare bonus offers to find the card that best fits your budget and financial goals.

Before you apply, it may be ideal to check your FICO^® Score^Θ and credit report for free from Experian. You'll get an idea of how likely you are to be approved, giving you a chance to work to improve your credit before you apply.