You may have often come across mails offering unlimited bonus cashbacks and other rewards if you apply for a particular credit card. We often take a quick glance at it and delete it from the inbox. However, if you look through the webpage of any particular card, you will find that the various joining benefits or sign-up bonuses are totally legitimate and even free in many cases.
Here we will take a look at how these joining benefits work and how you can take advantage these benefits.
How do these joining benefits work?
Most cards will offer joining benefits in the form of a certain number of rewards points or cashbacks if you make purchases worth a specific amount using the card within a particular period of time. Often, the spending requirement will be manageable without getting overstretched in that period and if you follow all the other rules, you are likely to get that benefit.
However, you are better off not applying for that card if your expenses are low. Also if you do not have enough cash to pay the entire bill amount before the due date, you should perhaps refrain from that rewards card altogether.
Myths associated with joining benefits
There are quite a few myths associated with joining benefits. Let us take a look at some of these myths:
● You will not get anything valuable in return
It is quite possible that the gift that you may receive like a silver toaster may not be worth getting a credit card, but if you get 100,000 bonus miles that may help you purchase an air ticket worth S$1,000, getting the card will be totally worth it.
● Getting a credit card just for the sake of a joining benefit will trash my credit score
It is quite likely that applying for multiple credit cards can have a negative impact on your credit score, but for most individuals, the credit impact is minimal.
● You may not be able to use the rewards at all
Many people say this because they themselves are not aware of how to use rewards points. For example, earning flyer miles is not difficult, but once you do that, you also need to know how to get the best deals on flights.
Sign-up bonuses: Are they risky or an easy way to earn more money?
Practically all major rewards points and cashback cards offer a sign-up bonus. Most of these bonuses will be in the form of airline miles, free hotel stays, or cashbacks. The most significant factor is getting a card that offers bonuses that you will surely use and without putting too much effort.
A lot of Singaporeans benefit from these sign-up benefits, and they make the most of it without having to pay any interest or annual fee. To be among them, you just have to understand your limits and be eager to try new things. If you act wisely, you could score free travel, gift cards, and more.