You’ve probably seen big sign-up bonuses with credit cards at some point. They’re often used with rewards credit cards or frequent flyer credit cards to help one offer stand out from the competition. Have you ever applied for a new card because one of these bonuses got your attention? Have you considered applying for one just to get the bonus? Are these bonuses even worth it?

Let’s look at some examples of big credit card sign-up bonuses and some signs that they may or may not be worth your while.

Examples of Credit Card Sign-Up Bonuses

• Bonus rewards points
• Bonus frequent flyer points
• Extra (like double) rewards points on purchases for a limited time

When Sign-Up Bonuses Are (and Aren’t) Worth It

Do these bonus rewards really make one credit card offer better than another? Sometimes yes, sometimes no. For example, if you’ll get enough bonus points that you can redeem them for something right away (where it might otherwise take you a year or more to earn that many points), it can be worthwhile. That’s especially true if the reward you’re interested in might not be around anymore by the time you accrue enough points through your regular spending.

Bonus rewards are also a great thing if all other things are created equal. For example, if two cards have similar interest rates and fees but one offers bonus rewards points while the other does not, the card with the bonus offer would be a better deal.

That means the opposite is also true. If a credit card offers bonus rewards but it has a higher interest rate or higher fees, then it probably isn’t worth applying for. You could save more with the cheaper card, putting that cash towards whatever you planned to redeem the points for.

Another situation when bonuses may not be worthwhile is if there’s a specific spending amount required to get the bonus. For example, many of these cards give you the bonus when you make your first purchase without saying what value that purchase has to be. But the American Express Platinum Edge credit card requires you to spend $500 in your first two months to get their bonus frequent flyer points.

Is it worth it? It might be — if you planned to spend that much in your first two months anyway. But any time a credit card company entices you to spend more than you planned to for a bonus, it’s not a good idea.

The only way you can be sure a bonus offer from a credit card company is a good deal is to compare it to other offers currently on the market. The key is to get the best all-around deal, where you get the most while being charged the least. So don’t rush to fill out an application if the overall offer might cost you much more in the long run.