What could be better than to sign up for a credit card with money on it right? Given the tight competition in the credit card industry, companies have come up with ways to get people to sign up for a new card with them.

Some of them use low interest rates. Others offer great rewards and cash back programs. And some, give out a very attractive credit card signup bonus.

Although these may be very appealing, you have to make a smart choice before you avail of them. This type of offer usually comes with a price. There is no such thing as free – you have to remember that.

To help you make the right decision when you sign up for a credit card with money on it, here are some tips you may want to consider.

Make sure you will use the card.

As appealing as these offers may be, you have to make sure that you will not blindly apply for credit cards left and right. If you are applying only for the bonus, then do not do it. Ensure that you have a real need for the credit card before you avail of it. If not, then you might put yourself in danger of acquiring credit card debt.

Know the catch.

When you come across a card that will give you a bonus after signing up with them, always ask yourself: what’s the catch? Do you need to meet a purchase requirement? Or does the card have high annual fees or interest rates? If you will get a cash bonus but you do not intend to use the card, make sure the bonus will be worth the effort to open and cancel the credit card account.

Follow the terms.

Some people sign up for a credit card with money on it but failed to get anything because they did not meet the terms. All offers have terms and you need to follow them. If the terms indicate that you will get $500 worth of bonus points but only after spending $5,000 on purchases within the month, you need to follow through. If you fail to make the purchase within the due date, you might end up with $5,000 in your balance and no bonus.

Do not forget to read the fine prints of the card.

Do not concentrate too much on the terms of the bonus that you fail to read the fine prints of the card. You may be signing up for a big bonus but you will be tied to a very high interest rate. Make sure you take the time to read the terms and conditions before you sign up for a credit card with money on it.

Refrain from overspending just to get the bonus.

If the bonus requires you to spend way beyond what you can, do not go for it. It is just like buying an item that you will not use at 70% off. You think that you saved 70% on the price but the truth is, you just wasted the 30%.

To sign up for a credit card with money on it may seem like a good idea – but make sure that you know all the details first before you decide to pursue it.