Credit Card Bonuses – How I Earned $2,400 in One Year (And Some Mistakes Along the Way)
I got really into credit card bonuses a few years ago. Started as a way to get a free flight, turned into kind of a hobby. I have earned thousands in cash back and travel rewards, but I have also made some dumb mistakes that cost me money. Let me share both sides.
The Main Types of Bonuses
Sign-up bonuses – These are the big ones. Spend a certain amount in the first few months and get a chunk of cash back or points. I have seen bonuses worth $500-1000 in value. This is where most of the easy wins are.
Cash back – Some cards give you a percentage back on everything you buy. Usually 1-2% flat, or higher in certain categories like groceries or gas. Less exciting than big bonuses but it adds up over time.
Points and miles – Travel cards give you points that can be used for flights, hotels, sometimes other stuff. The value depends a lot on how you redeem them. Done right, points can be worth way more than cash back.
Intro APR offers – Some cards give you 0% interest for a while. Not really a bonus but can save you money if you need to make a big purchase and pay it off over time.
How to Actually Get These Bonuses
Most sign-up bonuses require you to spend a certain amount. Like spend $3,000 in the first 3 months, get $500 back. That might sound like a lot, but here is the thing – it is spending you would do anyway.
When I am going for a new bonus, I time it with big expenses. Car insurance payment? Put it on the new card. Got to buy a new appliance? New card. Groceries for the next few months? New card. You are not spending extra, just directing the spending you were already going to do.
What I do NOT recommend: buying stuff you do not need just to hit the bonus. That is how people get into trouble. The $500 bonus does not help if you spent $400 on junk you did not want.
The Credit Score Question
People ask me all the time – does not this hurt your credit score? Short answer: a little bit, temporarily. Each application creates a hard inquiry, which dings your score by a few points. But those inquiries fall off, and having more available credit actually helps your score over time.
My credit score is better now than when I started doing this. Weird but true.
That said, if you are about to apply for a mortgage or car loan, maybe chill on the new credit cards for a few months. You want your score as clean as possible for the big stuff.
My Best Redemptions
The flight to Hawaii for my anniversary cost me $11.20 in taxes. Just the taxes. The points covered everything else. That would have been like a $600 flight.
I cashed out $750 in sign-up bonuses last year and used it for Christmas presents. Basically free Christmas.
A hotel stay in San Diego that would have been $400/night cost me 35,000 points. I valued those points at around $350 for the stay. Not quite as good as the Hawaii flight but still solid.
My Dumbest Mistakes
Okay, story time. I once signed up for a card with a $4,000 spending requirement. No problem, I thought, I have got this planned out. Except I forgot I had already paid a few big bills that month. I ended up short of the requirement and missed the bonus by like $200. That was an expensive lesson in keeping better track.
Another time I let a card with an annual fee renew because I forgot to cancel it. Lost $95 because I was lazy. Now I put reminders in my calendar for every card with a fee – 30 days before the annual fee hits, I decide if it is still worth keeping.
I also once transferred points to an airline miles program for a redemption that ended up not working out. Those points were gone and I could not get them back. Learned to only transfer points when I have a specific redemption ready to book.
The Cards I Actually Keep Long-Term
Most of my cards I cancel after a year (before the annual fee hits). But there are a few I keep:
One no-annual-fee cash back card that gives 2% on everything. This is my daily driver for random purchases.
A travel card with a $95 fee that gives me airport lounge access. Worth it because I travel a few times a year and lounges are awesome. Free food, drinks, comfortable seating.
My oldest credit card which I have had for like 15 years. I barely use it but I keep it open because length of credit history matters for your score.
Who Should NOT Do This
I am going to be real with you. Credit card bonuses are great for some people and dangerous for others.
If you carry a balance on your credit cards – if you are paying interest – stop reading and focus on paying off debt. The bonuses are not worth it if you are paying 20% interest.
If you have trouble controlling spending, having new cards with new credit limits is just temptation. The points do not matter if you are buying stuff you can not afford.
If you are not organized, you will miss spending requirements, forget about annual fees, and end up worse off. You need to track this stuff.
If You Want to Try This
Start simple. Get one card with a reasonable spending requirement (something you can hit with normal spending in 3 months). Pay it off in full every month. Cash out the bonus. See how it goes.
If that works, you can get more aggressive. Some people run multiple sign-up bonuses at once. I usually have 2-3 going, but I have been doing this for years and have good systems.
The key is treating it like a little side hustle, not a shopping spree. The bonus is the point, not the spending.
Last thing – do not let anyone make you feel bad about this. Some people think credit card bonuses are somehow gaming the system. They are not. The credit card companies make plenty of money from merchant fees and from people who do carry balances. They offer bonuses because it is profitable for them. You are just playing by the rules they set up.
Anyway, that is more than you probably wanted to know about credit card bonuses. Happy hunting.
