Some credit cards offer welcome bonuses of over 100K points, but are they worth it?

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.

One "shock-and-awe" tactic used by credit card companies is welcome bonuses involving hundreds of thousands of points or miles, but are these offers actually worth it?

It can be easy to get distracted by cards offering thousands of dollars in redemption value, but there are a lot of important questions to ask yourself before applying: Can you afford to spend enough to hit the welcome bonus? Does the card offer longer-term value? And are you earning a new currency, or adding to one you already have?

CNBC Select takes a look at some of the different types of large welcome bonuses available and which, if any, could be a good fit for you.

Similar to how rewards credit cards can earn different types of rewards currencies, welcome bonuses can take a few different forms. But there are a few that you'll see most often.

• Cash back: Cash back credit cards typically offer a lump sum of cash back rewards after you hit your spending goal for the welcome bonus. Cash back is generally best for people looking to keep their finances simple and who want straightforward redemption options, like a direct deposit or statement credit.

• Transferable points or miles: Many credit cards offer issuer-specific points, like Chase Ultimate Rewards® points or American Express Membership Rewards® points, which vary in value depending on how you redeem them. These are typically best used for travel and can provide substantial value, but they can also be considerably more complicated to redeem if you opt for transfer partner travel.

• Hotel night stays: While less common than the first two types of welcome bonuses, hotel credit cards often reward a certain number of "free nights" in addition to (or in lieu of) a rewards-based bonus. Rewards nights generally allow for a complimentary stay in a room up to a specified value.

Welcome bonuses typically require you to hit a specific amount of spending over a certain time period, so make sure that both of those aspects are factored into your decision.

While some of the largest welcome bonuses can be too costly to earn for lower spenders — or provide you with a less valuable rewards currency — there are instances when they make sense.

For those who don't have a favorite airline or simply enjoy traveling, the Chase Sapphire Reserve® (see rates and fees) is currently offering a 150,000-point welcome bonus after spending $6,000 on purchases in the first three months from account opening.

These points can be worth even more thanks to Chase's Point Boost feature, which can increase your rewards value by up to 2 cents apiece on select travel booked through Chase. That means this welcome bonus could be worth up to $2,500, which is enough to offset the card's high $795 annual fee for over three years — not accounting for the various statement credits and perks that the Sapphire Reserve offers.

If you're thinking ahead to spring break or summer travel, consider the Marriott Bonvoy Boundless® Credit Card. The Bonvoy Boundless is offering up to 4 Free Night Awards (each night valued up to 50,000 points; certain hotels have resort fees) after qualifying purchases. Knowing you have these up to four complimentary nights available throughout 2026 can help you better plan your future travel.

For example, Citi jumped into the premium card space in 2025 with the launch of the Citi Strata Elite℠ Card. The card previously offered a limited-time bonus of 100,000 points after spending $6,000 in the first three months of account opening. While 100,000 Citi ThankYou® Points was a great offer, what makes this even more appealing is that Citi also added American Airlines as a transfer partner. (The card currently earns 75,000 bonus points after spending $6,000 in the first three months of account opening.)

Although American Airlines shifted to dynamic pricing in 2023, that doesn't apply to its partner flights. For example, you can book a Premium Economy flight to Europe for just 40,000, so your lump sum of Citi points from the Strata Elite welcome bonus could be put to good use.

If you're a small business owner who anticipates growing your business this year, The Business Platinum Card® from American Express could be a good fit. Currently, you may be eligible for as high as 300,000 Membership Rewards® Points after spending $20,000 in eligible purchases on your new Card in your first 3 months of Membership. Welcome offers vary and you may not be eligible for an offer.

American Express Membership Rewards® is a strong rewards currency on its own, but the Amex Business Platinum also features a 35% airline bonus when you Pay With Points to book select flights. If you use Membership Rewards to pay for all or part of an eligible flight booked through Amex Travel with your selected qualifying airline, you can get 35% of your points back (up to 1,000,000 points back per calendar year). If you book this way, your points are worth 1.54 cents each, making the bonus worth up to $3,080.

Another nice aspect of the card is that it earns Membership Rewards® points on a variety of business-focused categories and 5X points on flights and prepaid hotels booked through AmexTravel.com.

While the exact time you sign up for a credit card bonus is highly personal, there are a few things to be aware of when you're considering applying.

One thing that's fairly easy to do is to check the history of this welcome offer. How is it compared to the card's best-ever bonus? If it's substantially lower when you check, consider waiting, especially if you're not in urgent need of a new card.

You should also consider how many new cards you've opened recently. Not only do applications affect your credit score, but some issuers will reject you if you've opened too many cards in the recent past.

When aiming to complete a welcome offer, you may need to spend a bit more than you usually would, so take stock of your finances to see if it's feasible or consider timing the bonus with a large upcoming purchase. It's never worth going into debt for a lump sum of points.

It's also important to consider if you're applying for other financial products that require a credit check, such as a mortgage loan, as hard pulls can temporarily lower your credit score.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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For rates and fees of the The Business Platinum Card® from American Express, click here.  

The Business Platinum Card® from American Express Welcome Offer: To view your personalized offer, you must first submit an application. If approved, you will: (1) receive your Welcome Offer details, (2) have the option to accept the Card with that offer, (3) be required to spend $20,000 on eligible purchases within the first 3 months of Card Membership, and (4) earn Membership Rewards® points. Welcome offers vary and you may not be eligible for an offer. If you're approved and accept your offer, a credit check may be conducted, which could impact your credit score. Terms apply.