Throughout 2011, credit card offers have grown increasingly generous. In the past, only airline credit cards offered substantial sign-up bonuses. Today, a wide range of rewards credit cards are being promoted that provide new card-members with bonuses ranging from $50 to $500. While there are always strings attached, the hurdles that stand between applicants and the bonuses being advertised are minimal and are simply based on meeting certain spending requirements within a three month period.
Below are some insights on credit card reward promotions worth considering ahead of the holiday season.
Credit Card Offers with the Largest Credit Card Reward Bonuses
As has been the case throughout the year, Chase Sapphire and Chase Sapphire Preferred offer consumers two of the largest bonuses. Each card requires new applicants to spend $3,000 during the first three months of card-membership in order to obtain the bonuses offered. Of the two cards, Chase Sapphire Preferred leads the pack, serving up a 50,000 Chase Ultimate Reward point bonus that, at bare minimum is worth $500. However, if these miles are redeemed for travel rewards, the value of the bonus increases to $625. This card charges no annual fee the first year, but does charge $95 in subsequent years.
Consumers who want to avoid annual fees will find the standard Chase Sapphire card to be a better fit. With this card, consumers who meet spending requirements get a 25,000 point bonus worth a tidy $250. Full details are listed below.
Citibank Thank You Rewards cards are offering similar, though slightly less generous promotions. As is the case with Chase Sapphire cards, the larger bonuses are available on the card with the annual fee.
Cash Back Credit Card Offers with Large Sign-Up Bonuses
Cash back credit cards are increasingly becoming the most popular type of rewards cards and consumers in the market for this type of card don’t have to sacrifice much to obtain competitive sign up bonuses. Plus, the major cash back credit cards being promoted all come with no annual fees. The largest bonuses – $200 on the Chase Freedom Credit Card and $200 on the Citi Dividend Card - are best for consumers who pay their credit card balances in full every month. Consumers who tend to carry balances may be better off with the $100 versions of these cards – and the Citi Dividend Card in particular – as these offers come with 0% interest rates on purchases and balance transfers.
Airline Credit Card Offer Bonuses
While airline credit cards are typically best left to savvy frequent flyers, a number of offers in this segment of the market are offering promotions worthy of consideration. However, before opting for an airline credit card, it is important to consider whether or not it is worth the hassle of tying oneself to a single carrier. Those who fly United, Continental or Delta frequently can benefit nicely from the 25,000 to 40,000 mile promotions currently available. Ultimately, though, long term benefits like free checked bags can offer much more savings in the long term than free miles. Thus, consumers who fly these airlines frequently should look past the free miles and focus on whether the savings on bag fees will offset annual fees.
For additional information, please see our ranking of current credit card rewards offers.
