Best intro bonus credit cards of 2023

A credit card intro bonus, also called a credit card sign-up bonus, is an incentive for signing up for a credit card and spending a certain amount on it. A credit card intro bonus typically comes in the form of cash back, points or miles.

To earn an intro bonus, you'll first need to be approved for a credit card that offers sign-up bonuses to new cardholders. Then, you'll typically need to spend a certain amount of money on the card within a given amount of time. For example, an intro bonus card may require you to spend $500 within three months in order to qualify for the bonus. Once you meet the spending requirements, it can take a few weeks for your bonus to appear in your account.

There is no set limit on how many times you can receive credit card intro bonuses from different cards. That said, you can't earn a bonus more than once on a given card and some card issuers have policies that prevent a single cardholder from earning certain bonuses multiple times.

The easiest credit card intro bonuses to earn are from credit cards with low spending requirements. For instance, a intro bonus that requires you to spend $500 to within three months to earn the bonus will be substantially easier to attain than one that requires you to spend $3,000 within three months. That said, the more difficult to attain bonus could be more bigger and more valuable. Be sure to pick an intro bonus that aligns with how you expect to use the card and how much money you can afford to spend.

No, credit card intro bonuses are not taxable. You won't have to pay any taxes on your card's welcome bonus because your bonus is a credit for money you've already spent. So, for example, if you spend $3,000 on your credit card and are rewarded with a $500 bonus, that's money that you've saved on your purchases—not money you were gifted. Ultimately, it still means more money back in your pocket. But because of this distinction, it isn't taxable income.

In general, credit card intro bonuses require you to meet a spending requirement in order to earn the bonus. Once the requirement is met, you'll be awarded the bonus. Keep in mind that it can take anywhere from a week to a couple statement periods for your bonus rewards to appear on your credit card statement.

While it is possible to open multiple credit cards to get multiple intro bonuses, applying for credit too frequently has a negative impact on your credit. It's a good idea to time applying for a new intro bonus credit card with an occasion where you're planning to spring for a large purchase, such as when you're furnishing a home or buying a new appliance. That way, you can confidently earn the intro bonus without overspending. Then, wait at least six months before you apply for another card. While it may be possible to qualify for multiple intro bonus cards at once, but pursuing sign-up bonuses shouldn't come at the cost of damaging your credit.

No, it's typically not a good idea to cancel your credit card once you earn the intro bonus. There are a couple reasons why.

First, it's important that you check your intro bonus credit card's terms before you close the card. Some sign-up bonus cards have terms that require you to leave the account open for a certain period of time after earning the bonus. Violating these conditions could mean losing your rewards; some credit card issuers will take back your welcome bonus if you close the card within the first year, for example.

Second, opening and closing credit cards frequently can have a negative impact on your credit. New credit card applications show up on your credit report, and having a large number of inquiries in a short period of time can make you look unreliable to lenders. In addition to this, opening new accounts decreases the average age of your credit, whereas leaving accounts open over time increases the age of your credit. Even if you don't plan to use the credit card frequently, it's generally best for your score if you keep credit accounts open and allow them to age.

As an added benefit, leaving your credit card open without running up a balance will lower your credit utilization rate, which has a positive impact on your score and conveys to lenders that you aren't overly reliant on credit.