32% of travelers overspend to earn credit-card sign-on bonuses. Here’s how to avoid that ‘siren song,' says industry analyst

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Nearly half of consumers holding a credit card with travel perks opened the card to chase the rewards — and a big share of them blew their budgets in the pursuit, according to a new survey.

Specifically, 45% travel credit cardholders opened a card solely for its sign-up bonus, according to a ValuePenguin poll of 1,008 consumers. However, 32% of consumers whose credit card came with a sign-up bonus say they spent more than they could afford to meet the card's requirements.

Credit-card companies pitch sign-up bonuses to attract new customers.

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Generally, they offer benefits like a cash bonus or «points» that can be redeemed for travel discounts. However, customers must spend a certain sum — often hundreds or thousands of dollars — within a preset time period to see those rewards land in their account.

Examples of sign-up bonuses they might encounter, according to Ted Rossman, a senior industry analyst at CreditCards.com, include those from the Chase Sapphire Preferred and Wells Fargo Active Cash cards.

The Chase Sapphire Preferred card is currently offering 60,000 points (the equivalent of a roughly $750 bonus for travel, Rossman said) to new users who spend at least $4,000 in the first three months. The Wells Fargo Active Cash card has an offer for a $200 cash bonus to customers who spend $1,000 in the first three months.

Sign-up bonuses can be lucrative but may also be a «siren song» if customers don't use their cards wisely, Rossman said.

Overspending can snowball into a larger issue for consumers if