How it Works

How it Works

Select a bonus type

Before getting started with credit card bonuses, you should understand the difference between airline miles, reward points, and cash back bonuses, and decide what kind of bonus is right for you.

Once you know what type of bonus you want, you can search for credit cards with that type of bonus. Keep in mind that cards have a spending requirement (such as spending $1000 within the first 3 months), so make sure you find cards that fit into your normal spending habits.

Get the bonus

With the right card in mind, go head an apply. Not every credit card application is approved immediately, so there may be a bit of waiting before you will know. It depends on your credit score.

After you’ve been approved an receive your new credit card, it’s time to put it to work. The key is to reach the spending requirements withing the required timeframe without changing your spending habits. After all, what is the point of earning a bonus if you spend extra just to make the spending requirement?

Cancel irrelevant cards

You should always have at least one long-term credit card because credit history plays a big role in your credit score. With that in mind, after receiving a bonus, you may want to get rid of some cards. After all, some of them carry an annual fee.

Perx makes it easy to set a reminder to cancel any card you apply for. Cancelling a card is very easy. Make sure you have received your bonus. Pay off the card in full. Then call the card provider and cancel the card. It’s always a good idea to allow a week or so and call back to confirm there is not any remaining balance on the account.

Getting another card

In order to maintain a good credit score, you should only apply for new credit cards two to three times per year, max. You can apply for several at once, but every application should happen within the same month.

If there is a card with a particularly nice bonus, you should know that you cannot cancel it and then immediately re-apply. Bonuses are generally only eligible to new card members, but most providers allow you to re-apply for the same card and get the bonus after two years. Perx also provides an easy way to setup reminders to apply for the same card after two years.