How credit card welcome bonuses work in Canada (and how to earn them)

A credit card welcome bonus (also called a sign-up bonus) is a one-time reward of points, miles, or cash back you earn for getting a new card and meeting a spending requirement in the first few months. The "catch" is almost always the same: you have to spend a minimum amount within a set time window, and you only keep the value if you pay your balance in full. This guide explains how the requirements work, how the bonus posts, and the rules worth knowing before you apply.

Nothing here is financial advice. Welcome offers change constantly, so always confirm the current terms on the issuer's own page before you apply.

The minimum-spend requirement and time window

Most welcome bonuses are not free for signing up. You earn them by spending a minimum amount within a window that starts the day your account opens. For example, the TD Aeroplan Visa Infinite offer pays 15,000 Aeroplan points when you spend $3,000 within 90 days of account opening, plus 10,000 points on your first purchase, and a separate 15,000-point anniversary bonus if you spend $12,000 within 12 months.

Windows vary by card. Common shapes you will see in Canada:

• A single lump-sum target, like spend $X within 3 months.
• A monthly structure, like the American Express Cobalt, which pays points for each month you hit a monthly spend target over the first year.
• A split bonus, where part posts on first purchase and the rest after you hit the spend threshold.

The key number is the spend you can realistically reach with normal purchases inside the window. If the target is higher than what you would spend anyway, the bonus may not be worth chasing.

First-year annual fee waived offers

Many premium cards waive or rebate the first-year annual fee as part of the welcome offer. On the TD Aeroplan Visa Infinite, the standard annual fee is $139, and the offer includes a first-year annual fee rebate when you activate the card and make your first purchase within the first 3 months. That effectively makes year one fee-free, but the fee returns in year two unless stated otherwise.

A waived first-year fee is a real saving, but treat it as a one-year trial, not a permanent perk. Before the second year, FCAC advises estimating the value of the rewards you expect to earn in a year and subtracting the annual fee. If the fee is higher than the benefit, the card is not worth keeping. See our guide on whether an annual fee is worth it.

How and when the bonus posts

Welcome bonuses are not instant. You typically have to fully meet the spend requirement first, and then the points or cash back post weeks later, often in the statement cycle or two after the window closes. Until the conditions are met and the reward appears in your account, treat it as pending.

A few practical notes:

• Returns and refunds reduce your net spend and can push you below the threshold.
• Some transactions do not count toward minimum spend, such as cash advances, balance transfers, interest, fees, and sometimes bill payments. Check the terms.
• Annual fees charged to the card usually do not count toward the spend requirement.

Why you must pay in full to keep the value

A welcome bonus only makes you money if you avoid interest. Canadian purchase rates commonly sit near 19.99 to 22.99 percent, so carrying a balance to hit a spend target quickly erases the reward. As FCAC puts it, paying off your balance in full each month is the best way to avoid interest charges. A 25,000-point bonus that recognized points-valuation estimators value at roughly 2.1 cents per Aeroplan point (an estimate, see point values) is worth around $525, but a few months of interest on a carried balance can wipe that out.

The rule is simple: only chase a welcome bonus on a card you will pay in full, every month. See cash back vs points for which reward type wins for you, and our rewards card roundup for current options.

The Amex once-per-lifetime rule

American Express welcome offers in Canada generally carry an eligibility condition: you are not eligible for the welcome bonus if you currently hold, or have previously held, that specific card. Cancelling and reapplying for the same card does not reset your eligibility. This is widely known as the once-per-lifetime rule.

Two things to keep in mind:

• It is per card, not per issuer. Each different Amex card has its own separate welcome bonus, so holding the Cobalt does not block the bonus on a different Amex card.
• Amex sometimes sends targeted offers (by email or in your account) that do not carry the previous-holder restriction. Always read the specific terms attached to the offer you are applying through.

Do not overspend to hit a minimum

The biggest trap is manufacturing spending you do not need just to reach a threshold. FCAC warns against overspending when using credit cards. If a bonus needs $3,000 in 90 days and you would only naturally spend $1,500, buying things you do not need to chase the reward usually costs more than the bonus is worth.

A sensible approach: time a new card to a period when you have planned, normal expenses (a trip, an appliance, annual bills) so the spend happens anyway.

Worked example: is the bonus worth it?

Using the TD Aeroplan Visa Infinite figures above, and a recognized points-valuation estimate of about 2.1 cents per Aeroplan point (estimate only):

Item	Amount
First-purchase bonus	10,000 pts (~$210 est.)
Spend $3,000 in 90 days	15,000 pts (~$315 est.)
First-year annual fee	$139, rebated in year one ($0 net)
Estimated first-year reward value	~$525 in points
Net first-year value (fee rebated)	~$525 est.

The bonus only holds this value if you pay the balance in full and would have spent the $3,000 anyway. Carry a balance and interest near 20 percent quickly turns a positive into a loss.

How to actually earn one cleanly

• Pick a card whose spend target you can hit with normal purchases. Compare options on /cards and /compare.
• Confirm the current offer, window, and fee rebate on the issuer's own page.
• Put routine expenses on the card during the window; do not invent spending.
• Pay the statement in full every month so interest never touches the reward.
• For Amex, check you have not held that exact card before.
• Browse current travel cards and rewards cards to compare bonuses side by side.