What are credit card sign-up bonuses?

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What are credit card sign-up bonuses?
Credit card sign up bonus is a promotion o?er
that is given to new clients of banks and
financial institutions. These rewards come in
the form of reward points, cash back, or travel
points and are usually given to card holders
within the first few months of issuing the card
or within the cards first year. How Sign-Up
Bonuses Work
As for the features of bonuses, the individual
reward, which is given by the credit card issuer
to the holder, is given on the basis of meeting
certain requirements, such as spending a fixed
amount within a given period of one to three
months. For example, you could get 5,000 reward
points or some amount in cash back if you spend
of ?50,000 in the first three months on a
specific card.
Types of Sign-Up Bonuses
1. Reward Points These points can be cashed in
for items like groceries, hampers, gift cheques,
or even outstanding travel bookings. They are
?exible, keeping in mind that they may be used
under many classes.
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2. Cashback This type of bonus gives the
percentage of the amount you have spent back to
you in the form of statement credit or deposit
in cash. Cashback bonuses are rather simple and
their benefits can be seen right away.
3. Travel Miles Catering to business people and
those who are on a hurry to travel, these points
can be used to book ?ight tickets, hotel
accommodations, or even other traveling costs.
Other reward miles are frequently worth more
when used for travel.
Examples of Sign-Up Bonuses

• HDFC Bank Regalia Credit Card Upon activation,
  you can be rewarded with 2,500 points that may
  be used to various considerations by filling
  online reward catalog, such as travel and
  shopping.
• SBI Card Elite Now it comes with 5,000 reward
  points that can be redeemed after the annual fee
  has been paid, there are still other privileges
  that come with the card such as free movie
  tickets.
• Axis Bank Vistara Signature Credit Card O?ers a
  free business class ticket as a on board gift
  suitable for businesspeople who travel often.

Maximizing Sign-Up Bonuses
For most of these bonuses, it is good to engage
in massive purchases at some time when you are
issued the new credit card in order to meet the
spending threshold of the card as early as
possible. Select the card that will help in
getting more points for the expenditure one
usually makes or the kind of life one prefers.
Another way of ensuring the e?ortless achievement
of spending thresholds is to apply before the
periods of expected high expenditure, for
example, during the holidays.
Conclusion
For the first transactions that are usually
performed after getting a credit card, sign-up
bonuses make it possible to get good benefits.
Being aware of such terms and learning how to
manage your
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expenses, you will be able to benefit from these
financially rewarding promotions to the maximum
if you possess a credit card.