Part of any worthwhile travel strategy includes signing up for the right credit card at the right time. A card’s welcome bonus represents a singular opportunity to earn hundreds, or even thousands of dollars’ worth of rewards in a short period of time and can be more valuable than a credit card’s everyday earning rates or ongoing benefits.
But welcome bonuses rise and fall periodically, new benefits are added or removed and introductory APR offers change frequently. That makes it imperative to take advantage of bonus opportunities when they arise. You should apply for a best travel rewards credit card when it’s offering a higher welcome bonus than usual, you can meet the spending requirements and you’ve made sure that you are eligible for it.
Narrow Down Your Choices
Your first step should be to focus on one or two specific cards that you want to open next so you’re ready to apply at the right moment.
What Kind of Rewards You Want
First, decide what types of rewards you want to earn. Would you like an airline miles credit card to put toward free flights? Maybe you’d get more value from a hotel points credit card that can save you money on stays. Transferable points, like Chase Ultimate Rewards®, give you flexibility to redeem them through various airline and hotel partners as well as at fixed rates for reservations booked through Chase Travel℠. Finally, cash-back rewards credit cards might be best for those who prefer a straightforward rate of return (like 1% to 5% cash back) and the ease of earning and redeeming them.
Chase Sapphire Reserve®
This card offers superior points earning rates if you spend frequently on travel and dining out. The $300 travel credit justifies much of the annual fee, and redeeming points for travel through Chase Travel℠ nets you a 50% bonus.
- $300 annual travel credit is incredibly flexible
- Generous welcome bonus
- Get 50% more value when you redeem points for travel through Chase
- Points transfer to valuable airline and hotel partners
- High annual fee
- High variable APR on purchases
- Excellent credit recommended
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Travel℠.
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Travel℠. For example, 60,000 points are worth $900 toward travel.
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Member FDIC
Choose Cards You Can Maximize Through Spending and Perks
Once you decide on the type of rewards you’re interested in earning, narrow down your choices to the one or two cards that you can maximize through everyday spending. Pick a card that earns bonus rewards at the places you spend the most money, such as supermarkets.
Also make sure you’ll use any other benefits a card might have, such as a first free checked bag for you and one companion with the United℠ Explorer Card when you pay with your card and fly with United domestically, or up to $120 in annual statement credits for charges at eligible restaurants, payable as $10 per month credits (enrollment required), with the American Express® Gold Card (terms apply, see rates & fees). If you’re not going to take advantage of all a card has to offer, it might not be the right card for you.
Related. Best Rewards Credit Card
Find an Affordable Annual Fee
If the credit card you’re eyeing charges an annual fee, think about whether you can afford it or if it’s offset by the card’s benefits. Calculate the dollar amount of value you’ll get from a card and its perks, such as the Chase Sapphire Reserve®’s $300 in annual travel statement credits, or an annual free night reward with the Hilton Honors Aspire Card from American Express*, and weigh that against the cost of carrying it year after year—$550 in the case of the Chase Sapphire Reserve and $550 for the Hilton Honors Aspire. Only apply if you’re confident that you will reap more value from these types of benefits than you’ll pay to keep the card in your wallet year after year.
Spending Requirements You Can Meet
To earn the best credit card welcome bonuses, you often must meet specific spending requirements, such as using your card to make $4,000 in purchases within the first three months of opening your account. Before you get wowed by big bonus numbers, make sure you can hit these dollar amounts responsibly and without straining your finances. Otherwise, any late fees and interest charges may negate the value of the rewards you stand to earn.
Make Sure You’re Eligible
You wouldn’t want to go through the rigmarole of applying for a card only to find out that you’re not even eligible for its welcome bonus. First, check your credit score and make sure it’s within the normal range of applicants for the card you want. You’ll also want to look at how many credit card accounts you have open, and for how long. Some banks will usually decline folks who have applied for too many new credit cards within a short period of time, most notably Chase with its 5/24 rule.
Be sure to read through the terms and conditions of all cards you are considering. Certain credit card issuers, such as American Express, only let you earn the welcome bonus for a specific credit card once per lifetime. Others will prevent you from earning a new card’s welcome bonus if you have a related product or if you carried one recently.
Once you’ve found the card you want, it pays to time your application to earn the best bonus possible.
Related: Best Travel Credit Cards For Fair Credit
Apply at the Right Time
Here are the four most significant factors that will help you decide when it’s time to apply for that new credit card.
When the Welcome Bonus Is Increased
More than anything, it’s crucial to apply for a credit card when it is offering the best possible welcome bonus. After all, you wouldn’t want to miss out on tens of thousands of points or miles by jumping the gun.
For example, the Chase Sapphire Preferred® Card is currently offering a welcome bonus that allows new cardholders to earn 60,000 bonus points after spending $4,000 on purchases in the first three months from account opening. Sometimes the welcome bonus offered by this card is lower or higher, so it’s best to time your application for a higher bonus if you can.
When the Annual Fee Is Waived
Another way to know you’re getting an excellent opening offer is when a credit card waives its annual fee the first year. That basically means you get to try it out for the first year at minimal cost.
For example, the Delta SkyMiles® Gold American Express Card has a $0 introductory annual fee for the first year, then $150 (terms apply, see rates & fees). So you can apply for the card, earn its welcome bonus and see if it fits your needs. When the annual fee comes due after the first year, you can make a decision about whether to keep it, close it or change to another product.
When Introductory Financing Is Offered
Look out for credit cards that offer attractive financing terms for an introductory APR offer, too. For example, the Chase Freedom Unlimited® offers a 0% introductory APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. An intro transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, applies in the first 60 days of account opening. After that, a fee of either $5 or 5% of the amount of each transfer applies.
Taking advantage of that introductory offer could be a convenient way to pay down purchases without incurring interest charges if you need to carry a balance for a short time. Just remember that carrying balances will impact your credit score and possibly bring it down over time.
When You Have Specific Redemptions In Mind
Just as you think about the types of rewards you’d like to earn with a new credit card, it’s also prudent to have a few specific uses for them in mind before you fill out your application. You don’t have to know exactly how you’re going to spend them, but make sure you’ll be able to do so for trips or rewards you’d be interested in for the future.
For example, it wouldn’t be ideal to get an American Airlines co-branded credit card if you usually only fly Delta and its partners or a Marriott Bonvoy credit card if Hilton is your brand of choice.
Find the Best Travel Credit Cards for 2024
Find the best travel credit card for your travel needs.
Bottom Line
It can be hard to keep track of all the phenomenal travel rewards credit card offers available at any given moment. But taking time to research options and get a feel for when an introductory offer is worth applying for can earn you more valuable rewards when you do eventually decide to apply.
To learn more about the current best offers, take a look at the following articles:
- Best Credit Card Promotions and Special Offers
- Best Credit Card Sign Up Bonuses
- Best Travel Credit Cards
- Best 0% APR Credit Cards
To view rates and fees for American Express® Gold Card please visit this page.
To view rates and fees for Delta SkyMiles® Gold American Express Card please visit this page.
