Glossary
Sign-up bonus
A sign-up bonus is a reward, in points, miles or cash back, that a credit card pays new cardholders who spend a set amount within the first few months.
Bonuses usually require spending, such as $3,000 in three months. Issuers limit who qualifies, for example once per lifetime or not if you had the card recently. Rewards earned by spending are generally treated by the IRS as a rebate, not income; bank account bonuses are taxable.
Where you’ll see it on RateHerald
Related terms
- Cash backA credit card reward paid as a percentage of what you spend, flat (such as 2% on everything) or tiered by category, redeemed as a statement credit, deposit or check.
- Annual feeA yearly charge some credit cards bill for having the card, from under $100 to over $600 on premium travel cards; many cards have none.
Sources: CFPB: Credit card rewards