Sign-up bonus

A sign-up bonus is a reward, in points, miles or cash back, that a credit card pays new cardholders who spend a set amount within the first few months.

Bonuses usually require spending, such as $3,000 in three months. Issuers limit who qualifies, for example once per lifetime or not if you had the card recently. Rewards earned by spending are generally treated by the IRS as a rebate, not income; bank account bonuses are taxable.

Sources: CFPB: Credit card rewards