Sign up credit card bonuses are a great way to reduce travel costs in addition to the purchase of cheap fares, such as cheap airplane tickets, discount hotel rooms, and cheap vacation packages.
The value of points and bonuses for signing up for new credit cards have increased 20 percent from last year, according to Card Hub, a website that monitors credit card offers.
Incentives range as high as $500 that can be used towards a future vacation, even for people who are not frequent travelers, simply by signing up for the right credit card.
Card Hub reviewed over 1,000 credit card offers and found the following outstanding deals:
Chase Sapphire Preferred credit card comes with 40,000 bonus points, which is equal to $500 in airfare or hotel stays, so long as the card holder spends $3,000 over the first three months. Alternatively the bonus points can be converted into a statement credit of $400. This card does not charge transactions fees for international purchases.
Hilton HHonors American Express Surpass credit card offers new card holders 40,000 bonus points after the first purchase and an additional 20,000 after $3,000 is charged to the card. 60,000 points is enough to stay eight free nights at a Hilton Hotel, Embassy Suites, or Hampton Inn.
British Airways Visa Signature credit card offers new card holders 50,000 points after the first purchase, which is enough for a round trip international flight. Another 25,000 miles can be earned if $10,000 is spent the first year, with another 25,000 miles available if over $20,000 is spent during the first year. By spending $30,000 in a single year card holders earn a Travel Together Ticket from British Airways good for two years.
The British Airways card is particularly attractive to people traveling overseas because it is a smart card which is embedded with a computer chip. British Airways is partnered with American Airlines and its points can be transferred to American Airlines.
The reason credit card companies are offering such large bonuses is because of the intense competition to sign up new credit card holders who enjoy excellent credit scores. As a result, credit card issuers are offering attractive perks to people considered to have the lowest financial risk.
Before signing up for reward cards keep in mind that they usually come with higher interest rates than a traditional credit card. Card holders would be smart to avoid such cards unless they are able to pay off their bills in full and on time each and every month.
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