How to Maximize the Value of Credit Card Welcome Offers

Maximizing credit card rewards is like free money in your pocket, and who doesn’t want that? A big part of that strategy is taking advantage of credit card welcome offers extended to new cardholders. You can start with the 1-2-3 Cash Back System, where we recommend getting a Daily Driver credit card first. Then, in year two, you can add a Triple Play card. In year three, you can apply for a Category King credit card, and if you are a business owner, you can apply for a business credit card the year after that.

Step 1: Choose a Daily Driver and Invest the Welcome Offer

If you only want to carry one credit card, make it a daily driver. This is a card that earns an elevated flat rate, usually 1.5% to 2% cash back on every purchase. You don’t have to worry about what category your purchase will code as, you get that flat rate no matter what.

Wells Fargo Active Cash® Card

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Our Rating: 4.9

★★★★★☆

Wells Fargo Active Cash® Card

Welcome Offer

Earn a $200 cash rewards bonus

Est. Value

$200

Annual Fee

APR

19.49%, 24.49% or 29.49% Variable

Credit Req’d

Good to Excellent 670 – 850

Rewards: Earn unlimited 2% cash rewards on purchases.

The Wells Fargo Active Cash® Card is a great choice for a daily driver credit card because it offers a hearty bonus for the amount you have to spend. It’s a decent card after that as well, especially since it offers 0% intro APR on both purchases and balance transfers for 12 months from account opening, then 19.49%, 24.49% or 29.49%
variable APR. Plus, some great benefits such as cell phone protection.

2% cash back

All eligible purchases

Earn unlimited 2% cash rewards on purchases

Pros

Welcome offer
No annual fee
2% cash back

Cons

Foreign transaction fee
Requires good credit

App Status	Date	Credit Score	Bureau	Credit Limit
Approved	04/20/2023	810	Not Provided	$2,000
Approved	09/18/2024	758	Equifax	$10,000
Approved	09/18/2024	772	TransUnion	$10,000
Approved	09/18/2024	780	Experian	$10,000
Approved	09/21/2024	796	Experian	$30,000
Approved	09/02/2023	746	Experian	$6,000
Approved	09/02/2023	774	Equifax	$6,000
Approved	09/02/2023	786	TransUnion	$6,000
Approved	06/03/2023	820	Equifax	$30,000
Approved	02/18/2023	800	Not Provided	$20,000
Approved	06/23/2023	700	Experian	$30,000
Approved	04/14/2023	756	Experian	$13,000
Approved	10/23/2023	745	Equifax	$12,000
Approved	04/26/2023	743	Experian	$8,000
Approved	04/26/2023	751	TransUnion	$8,000
Approved	04/26/2023	765	Equifax	$8,000
Approved	10/04/2023	721	Experian	$16,000
Approved	09/24/2023	763	Experian	$15,000
Approved	09/24/2023	784	TransUnion	$15,000
Approved	09/24/2023	792	Equifax	$15,000
Approved	02/09/2024	723	Not Provided	$8,000
Denied	04/01/2023	744	TransUnion	---
Denied	04/01/2023	747	Experian	---
Denied	04/01/2023	767	Equifax	---

If you take that welcome offer and invest it into an account earning 9% interest, at the end of the year, you’d have $218. Admittedly, that is not a lot of money, but if you continue to invest your credit card welcome offers again in year two, you’ll be on your way.

A note on how we arrived at 9% interest: the average rate of return each year for the S&P 500 is about 10%. Some years are better than others, and not every year has a positive return. We chose a rate a little below average for more feasible results in our calculations throughout this article.

Step 2: Choose a Triple Play Credit Card in Year 2 and Invest the Welcome Offer

Triple Play credit cards earn at least 3% cash back or 3x points or miles in three or more categories, making them an excellent addition to the daily driver card you already have in your wallet.

Capital One Savor Cash Rewards Credit Card

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Our Rating: 4.5

★★★★★☆

Capital One Savor Cash Rewards Credit Card

Welcome Offer

$250 Cash Back

Est. Value

$250

Annual Fee

APR

19.74% – 29.74% Variable

Credit Req’d

Excellent, Good

Rewards: Earn 8% cash back on Capital One Entertainment purchases. Earn 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). Earn 3% cash back at grocery stores excluding superstores like Walmart® and Target®, and on popular streaming services, dining, and entertainment. Earn 1% cash back on all other purchases.

The Capital One Savor Cash Rewards Credit Card offers a fantastic welcome offer, 50% of the spend needed to earn it. This may be the best welcome offer out there, at least percentage-wise. In addition, the card offers cash back in common categories most people spend money on every day, and all for no annual fee.

1% cash back

On all other eligible purchases

1% cash back on all other purchases

3% cash back

Supermarkets

3% cash back at grocery stores excluding superstores like Walmart® and Target®

3% cash back

Streaming services

3% cash back on popular streaming services

3% cash back

Dining

3% cash back on dining

3% cash back

Entertainment

3% cash back on entertainment

5% cash back

Hotels

Earn 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

5% cash back

Rental Cars

Earn 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

8% cash back

Entertainment

Earn 8% cash back on Capital One Entertainment purchases

Pros

Welcome offer
No annual fee
No foreign transaction fee
Up to 10% cash back

Cons

High APR

App Status	Date	Credit Score	Bureau	Credit Limit
Approved	04/06/2023	740	Not Provided	$1,000
Approved	09/13/2023	720	TransUnion	$10,000
Approved	09/13/2023	740	Equifax	$10,000
Approved	09/13/2023	780	Not Provided	$10,000
Approved	12/05/2023	760	Not Provided	$10,000
Approved	02/01/2023	661	Experian	$5,000
Approved	02/01/2023	729	TransUnion	$5,000
Approved	05/11/2023	815	Not Provided	$10,000
Approved	06/08/2023	620	Not Provided	$5,000
Approved	04/04/2023	700	Not Provided	$1,000
Approved	08/14/2023	734	Experian	$1,000
Approved	08/14/2023	738	Not Provided	$1,000
Approved	02/02/2023	795	Not Provided	$15,000
Approved	02/02/2023	803	Not Provided	$15,000
Approved	09/05/2023	820	Experian	$40,000
Approved	04/12/2023	768	Equifax	$20,000
Approved	04/12/2023	768	TransUnion	$20,000
Approved	04/12/2023	772	Experian	$20,000
Approved	02/12/2023	657	TransUnion	$1,000
Approved	08/10/2023	672	Not Provided	---
Approved	08/10/2023	803	Experian	---
Denied	06/16/2023	700	Not Provided	---
Denied	10/25/2023	776	Not Provided	---
Denied	10/25/2023	778	Not Provided	---
Denied	03/08/2023	811	TransUnion	---
Denied	03/26/2024	736	Experian	---
Denied	06/17/2023	797	Not Provided	---
Denied	08/05/2023	710	Not Provided	---
Denied	12/02/2023	771	TransUnion	---
Denied	12/02/2023	804	Experian	---

This welcome offer all the more lucrative if you add it to your investment from the previous year. So, if we add the welcome offer from last year plus the interest we earned, ($218) to this year’s welcome offer ($250), that equals $468. If we invest all of that money in an account earning 9% interest, we’ll have $510 at the end of year two.

Step 3: Choose a Category King Credit Card in Year 3 and Invest the Welcome Offer

For the third year, we suggest adding a category king credit card to your wallet. These cards offer excellent rewards–usually 5% cash back or 5x points or miles, on just one category.

Citi Custom Cash® Card

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Our Rating: 4.7

★★★★★☆

Citi Custom Cash® Card

Welcome Offer

Earn $200 in cash back

Est. Value

$200

Annual Fee

APR

18.49% – 28.49% Variable

Credit Req’d

Good 670 – 739, Excellent 740 – 850

Rewards: Earn 5% cash back in your top eligible spend category each billing cycle up to the first $500 spent, then 1%. Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel^SM portal through 6/30/2026. Earn unlimited 1% cash back on other purchases.

The Citi Custom Cash® Card offers a decent welcome offer, but the best part about the card is that it also offers 5% cash back on your top eligible spend category each month, up to $500 spent, then 1%. Not only that, but you don’t have to worry about enrolling or choosing a category because Citi does all of that for you. The eligible categories are:

Restaurants
Gas stations
Grocery stores
Select travel
Select transit
Select streaming services
Drugstores
Home improvement stores
Live entertainment
Fitness clubs

Some of these categories are easy to spend $500 a month on, such as groceries. And up until 6/30/25, you can earn an additional 4% cash back on hotels, rental cars, and attractions booked through Citi Travel^SM.

1% cash back

On all other eligible purchases

Earn unlimited 1% cash back on all other purchases.

4% cash back

Select Categories

Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel(SM) portal through 6/30/2026.

5% cash back

Select Categories

Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter.

Pros

Welcome offer
No annual fee
Up to 5% cash back

Cons

High APR
Foreign transaction fee

App Status	Date	Credit Score	Bureau	Credit Limit
Approved	02/06/2023	748	Experian	$3,800
Approved	02/06/2023	759	TransUnion	$3,800
Approved	02/06/2023	761	Equifax	$3,800
Approved	10/04/2023	784	Experian	$5,300
Approved	10/04/2023	801	TransUnion	$5,300
Approved	10/04/2023	811	Equifax	$5,300
Approved	03/26/2024	741	TransUnion	$3,800
Approved	03/26/2024	742	Experian	$3,800
Approved	03/26/2024	751	Equifax	$3,800
Approved	09/13/2023	800	Not Provided	$11,600
Approved	01/17/2024	762	TransUnion	$6,800
Approved	10/24/2023	720	Equifax	$8,000
Approved	07/17/2023	790	Equifax	$3,000
Approved	01/17/2023	800	TransUnion	$5,300
Approved	05/10/2024	735	Equifax	$6,800
Approved	07/09/2024	743	Experian	$6,900
Approved	07/09/2024	751	TransUnion	$6,900
Approved	07/09/2024	765	Equifax	$6,900
Denied	05/12/2023	800	Not Provided	---
Denied	05/19/2024	762	Not Provided	---

The welcome offer for this card is $200. Imagine if we add that to the $510 we earned from our first and second year bonuses and invest it all in the account earning 9%. At the end of the third year, we can have $774.

Step 4 for Business Owners: Choose a Business Credit Card in Year 4 and Invest the Welcome Offer

It’s important to keep personal and business expenses separate, and an easy way to do that is to put all your business expenses on a credit card. Keep in mind, anything you do or sell to make a profit qualifies as a business. So, if you are among the roughly 33 million small business owners in the U.S., you can apply for a business credit card.

Ink Business Unlimited® Credit Card

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Our Rating: 4.6

★★★★★☆

Ink Business Unlimited® Credit Card

Welcome Offer

Earn $750 bonus cash back

Est. Value

$750

Annual Fee

APR

17.74% – 23.74% Variable

Credit Req’d

Excellent, Good

Rewards: Earn 1.5% cash back on all eligible purchases with no limits to the amount you can earn. This card is ideal for business owners who want a simple rewards system.

The Ink Business Unlimited® Credit Card has a fantastic welcome offer. After that, you’ll earn an unlimited 1.5% cash back on every purchase. Business owners with a million things to do will appreciate the simple cash back structure, and the fact that employee cards are free.

1.5% cash back

All eligible purchases

1.5% cash back on all eligible purchases with no limits to the amount you can earn

Pros

Welcome offer
No annual fee
Earns Chase Ultimate Rewards points
Earn 1.5% cash back

Cons

Foreign transaction fee
Requires good credit

App Status	Date	Credit Score	Bureau	Credit Limit
Approved	03/18/2023	825	Experian	$6,000
Approved	12/14/2023	783	TransUnion	$8,000
Approved	12/14/2023	787	Experian	$8,000
Approved	12/14/2023	791	Equifax	$8,000
Approved	10/04/2023	734	TransUnion	$8,000
Approved	10/04/2023	735	Equifax	$8,000
Approved	10/30/2023	850	Experian	$16,000
Approved	04/25/2023	662	Equifax	$4,000
Approved	04/25/2023	667	TransUnion	$4,000
Approved	04/25/2023	718	Experian	$4,000
Approved	04/16/2023	843	Experian	$16,000
Approved	01/12/2024	653	Experian	$4,000
Approved	01/12/2024	672	TransUnion	$4,000
Approved	01/12/2024	675	Equifax	$4,000
Denied	01/12/2024	756	Experian	---
Denied	01/12/2024	775	TransUnion	---

The Ink Business Unlimited® Credit Card has a terrific welcome offer. If we add that to last year’s $774, we get $1,524. When that money is invested with a return of 9%, we get $1661 at the end of our fourth year.

If we invest $1661 and assume a return of 9%, at the end of 10 years, we will have $3,932. If you invest it for 20 years, you’ll have $9,309, all without ever adding any other money to the pot.

How Monthly Contributions Can Increase the Value of Rewards

You could, of course, add your credit card rewards to your monthly contribution for an even greater return. For example, if you spend $500 per month on the Wells Fargo Active Cash® Card, that would earn you $10 in rewards. If you charge your streaming and dining purchases on the Capital One Savor Cash Rewards Credit Card and spend $350 you’ll earn another $10.50 in rewards. If you max out the Citi Custom Cash® Card on groceries (the cap is $500 a month) that gets you $25. And if you’re a business owner and you charge $500 a month on your Ink Business Unlimited® Credit Card you’ll have an extra $7.50.

Credit Card	Monthly Spend	Cash Back Rate	Estimated Monthly Cash Back	Estimated investment after 10 years*	Estimated investment after 20 years**
Active Cash	$500	2%	$10	–	–
Savor Cash	$350	3%	$10.50	–	–
Custom Cash	$500	5%	$25	–	–
Ink Unlimited	$500	1.5%	$7.50	–	–
Total	$1,850	–	$53	$13,863	$42,873

*Estimate after investing welcome offers and rewards at 9% return for 10 years. **Estimate after investing welcome offers and rewards at 9% return for 20 years

Added together, you have an extra $53 to invest each month. If you add that to your investment account every month (plus the welcome offers), you end up with $13,863 over 10 years, and $42,873 over 20 years. All of this is basically free money, and $40,000 is nothing to sneeze at.

Summary

When you invest the credit card welcome offers you earn, you’ll have a decent sum, but if you invest your credit card rewards as well, you’ll earn more money faster. To do this correctly, you also need to pay your credit card balance in full every month. Otherwise, paying interest on your credit card severely reduces the value of credit card rewards.

Investing your credit card rewards probably won’t make you rich, but it can help you build a nice emergency fund. Learn more about how our founder, Rob Berger, is doing this. Check out our article on Rewards Stacking: How to Build Wealth From Credit Card Rewards.