If you’re a responsible user of credit cards — someone who pays their balance off each month — or if you use credit cards for business purposes, then you may be able to benefit from some of the offers from credit card companies. I wouldn’t suggest these cards for anyone who pays interest on their balance every month, because those interest charges may not be completely offset by bonuses. Also, in many cases, these cards are only good for their sign-up bonuses; once you cash in, cancel the cards.
In addition, your credit score may be affected if you open new lines of credit, so if you’re looking to get a good deal on a mortgage interest rates any time soon, hold off on applying for these cards.
American Express Business Gold Rewards Card
Sign-Up Bonus: $50 $250
This is a business card, but you do not have to be a business owner to qualify. Any individual can apply and be accepted — as they qualify — for a credit card that bills itself as a “business credit card.” This business card offers an immediate reward of 5,000 bonus points, redeemable for a $50 gift certificate. Update: This card has been upgraded as of June 19 to offer 25,000 bonus points — a $250 gift card!
Be sure to cancel this card before your first year is up; there is a $125 annual fee, but it is waived for the first year.
Starwood Preferred Guest Business Card from American Express
Sign-Up Bonus: $100
This is similar to the Business Gold Rewards Card for a few reasons. Your first purchase with this card earns you immediate rewards. In this case, you’ll earn 10,000 points right away, good for a $100 gift card. There’s a $30 annual fee to be a card member, but that fee is again waived for the first year.
Citi PremierPass Elite Level Card
Sign-Up Bonus: $150
Citibank gives you 20,000 bonus points after $600 in purchases made within 3 months of account opening. The points can be claimed for a $150 reward. You’ll have to be careful to avoid the annual fee.
If you go ahead with any one of these cards, don’t fall into any of the traps. If you end up paying an annual fee or substantial interest, you’ll end up losing money even after the initial bonus.
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Along with new credit lowering your credit score, closing a credit line can lower it too. For me it’s not worth it for a $50 to $150 gift card. Also, at least some annual fee credit cards you can call before the fee kicks in and ask to convert it to a no-fee card (you’ll get fewer points/miles/whatever in exchange).
I agree with the comments above. The risk of lowering my credit score for $150 just isn’t enough for me.
Yeah, it’s not worth the time and the ~7 point FICO hit for a $50 sign-up bonus. However, I would apply for a new credit card or two if it meant an opportunity to sustainably earn a few hundred extra bucks a year in rewards.
In clicking on the American Express. I don’t see the $250 bonus at all. Is this still active?
Nancy,
It is still available, but only for another few days. The points can be redeemed for a gift card or an airline ticket. Here’s the fine print, at the bottom of the page when you click on the link for the Business Gold Rewards Card.