The real math on a 150,000-point sign-up bonus
A card dangling 150,000 points for $6,000 of spending is worth about $1,500, and the annual fee and spending target decide whether you actually come out ahead. Here is how to run it.
That 150,000-point bonus is worth about $1,500 toward travel, and the card charges a $795 annual fee, so you clear roughly $705 in year one before you account for anything else. That is the whole pitch, and it is a real number. The catch is that the bonus only counts as a win if you would have spent the $6,000 anyway and you pay the bill in full every month. Carry a balance and the interest erases the bonus fast. As of mid-2026 these are the live offers, and offers change.
What a point is actually worth
Start with a baseline of about 1 cent per point. That is the number to use when you want a quick, honest read on any bonus. So 150,000 points lands near $1,500, and 75,000 points lands near $750. You can sometimes get more than 1 cent each by booking through a travel portal or transferring points to an airline, but treat that as upside. If the deal only works when you squeeze 1.8 cents out of every point, it is not a deal you should count on.
Run every bonus on the 1-cent baseline first. If it clears the fee at 1 cent, anything extra you wring out of travel is a bonus on top of the bonus. If it only clears the fee at some heroic redemption rate, walk away.
The real math: bonus minus fee minus interest
The number that matters is not the headline points total. It is the bonus value at 1 cent each, minus the annual fee, minus any interest you would pay to hit the spending target. Here are the two example cards run on that baseline, before any interest.
| Card | Bonus value | Annual fee | Net year one |
|---|---|---|---|
| Flagship (150,000 pts, $6,000 spend) | $1,500 | $795 | $705 |
| Sibling (75,000 pts, $5,000 spend) | $750 | $95 | $655 |
Notice how close the two net numbers are. The flagship hands you twice the points, but its $795 fee eats most of the gap. The $95 sibling nets $655 with a far smaller spending target and a fee you can stomach in later years. Bigger bonus does not mean better deal once the fee comes out.
The rule that breaks the math
Carry a balance at a 20%-plus APR and the bonus is gone within months. Picture the flagship: you clear $705 after the fee, then you let a $4,000 balance ride at 22% APR. That balance costs you about $73 a month in interest, so by month 10 you have paid roughly $730 in interest and wiped out the entire bonus. The bank gave you $1,500 in points and took it back in interest, plus your $795 fee. You paid them to use the card.
This is why the bonus is a trap for anyone who revolves a balance. A sign-up bonus is a one-time payment. Interest at 22% is a recurring charge that compounds every day you carry the balance. The bonus is finite. The interest is not.
Two rules that keep the bonus real
- Only chase a bonus on spending you would do anyway. Rent, groceries, a flight you already booked, an insurance premium. Route normal spending through the card and pay it in full. The bonus is the reward for routing money you were going to spend regardless.
- Do not manufacture spending to hit the minimum. If you need to buy things you do not want to reach $6,000, the bonus is not paying you, you are paying for the bonus. Gift cards you will not use and gear you do not need cost real money. A $1,500 bonus you spent $1,600 of junk to earn is a $100 loss.
Note
Many issuers limit how often you can earn a bonus. One common rule denies you the bonus if you have opened 5 or more cards in the past 24 months, and other issuers cap how often you can collect on the same card family. Check the rule before you apply, because getting denied after you hit the spend means you paid the fee for nothing.
The takeaway
Value points at 1 cent each, subtract the annual fee, and subtract any interest you would pay, and only then decide. The flagship nets about $705 and the sibling about $655 in year one at the 1-cent baseline, as of mid-2026, and offers change. The bonus is a clean win on one condition: you pay the statement in full every month and you only spend what you were already going to spend. The second you carry a balance at 20% or more, the math flips against you. If you want the full picture on how that interest compounds, read how credit card interest is really calculated before you chase any bonus.
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