Sign-up bonuses are attractive for new cardholders, but they often come with high spending requirements to qualify. Many people open new credit cards to take advantage of the bonus rewards, only to realize they need to spend a significant amount within a short time frame, usually within the first three months. If a cardholder isn't planning to make large purchases, it can be difficult to hit the spending requirement. This makes it important to read the fine print and evaluate the bonus carefully.

Another downside to some sign-up bonuses is that the rewards points or miles you earn may have restrictions or blackout dates for redemption. This means that even after you meet the spending requirement, you might not be able to use the rewards when you want to. It's crucial to evaluate both the spending requirement and the actual value of the bonus to determine if itit's worth it. Keep an eye out for limited-time offers or targeted promotions, which might offer more achievable bonuses.