When you get a new travel credit card, it comes with a welcome bonus. Earlier this year, I signed up for a Chase Sapphire Preferred, used the card to pay for Beyoncé’s tickets, got the welcome bonus, and then used that bonus to buy two flights.
If you’re considering applying for a new credit card, a welcome bonus is a quick and easy way to earn extra rewards. But it only works if you use your card responsibly, spend as much as you can, and pay off your balance in full.
Getting the Chase Sapphire Preferred welcome bonus was quicker and easier than with most other credit cards. I planned so it only took a few days to earn the bonus and extra rewards. Here’s how it worked.
Chase Sapphire Preferred Card
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Annual fee is $95
Annual interest rate 21.49% – 28.49% Variable
Now that I had set some financial goals and was getting a little more savvy, I wanted to add another credit card to my financial arsenal—the only one I’d had since college. I chose the Chase Sapphire Preferred because it fit my spending habits and had the benefits of saving time and money.
More importantly, I want to save on travel by earning points on everyday purchases. For example, my husband and I dine out once or twice a week, so the 3x points earned with the Sapphire Preferred card add up quickly.
Plus, the Sapphire Preferred welcome bonus was very tempting. But experts know you shouldn’t spend too much on welcome bonuses, and I was determined not to. Accumulating credit card debt leads to interest and other fees.
I got a welcome bonus
I originally planned to get the welcome bonus on this card by paying for my son’s investments and monthly bills, then paying off the balance each month. But after Beyoncé announced her Renaissance World Tour, I realized I could get the welcome bonus early by putting the tickets on my new credit card and then paying the bills with the money I had saved in the Beyoncé Sinking Fund.
By the time these three friends asked me to put their tickets on my card so we could sit together, I had about $5,000 on it. The largest purchase netted me a welcome bonus in minutes without adding debt or affecting my credit utilization. And since I had a sinking fund to pay for my tickets—my friends paid it off quickly—I didn’t have to worry about owing money.
This works well for me. If you decide to use your card for a group purchase to get a welcome bonus, make sure everyone pays right away or before yours arrives. Otherwise, you may be charged interest and late fees.
I then used my points to book two flights.
My husband and I knew we wanted to use our welcome bonus to buy flights to visit family. I was new to the card and didn’t know how to transfer points to a travel companion, so I took the easy way out — I booked my flights using the Chase travel portal. Points redeemed through the travel portal are worth 1.25 cents per point, which is slightly more valuable than redeeming them with cash.
We were able to book two round-trip tickets by combining the points earned from our welcome bonus and regular purchases. We didn’t have to pay out of pocket for our summer travel, and the Sapphire Preferred continues to limit our travel costs for current trips.
in conclusion
A welcome bonus can help offset the cost of future travel or purchases — especially if you have a big expense coming up. But keep in mind that if you spend too much to earn the bonus or end up in debt after getting the card, the bonus won’t be worth it.
Even if you can’t easily earn rewards, if the card has strong ongoing rewards or other card benefits, it can add value and savings to your wallet. The key is to treat it like a debit card—avoid making purchases you wouldn’t normally make—and pay off the balance on the card as quickly as possible.
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