Your first step should be to focus on one or two specific cards 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, travel perks or to help earn status? 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 the 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.
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 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 New 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 don’t 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 can be 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 annual travel statement credit, 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 each year.
Spending Requirements You Can Meet
To earn the best credit card welcome bonuses, you’ll often need to 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 spending 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. You also don’t want to make extra purchases for the sole reason of earning a welcome bonus. Look at your spending patterns to determine what you spend normally, and that will help in your decision.
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 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 applicants 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 have carried one recently.
Once you’ve found the card you want, it pays to time your application to earn the best bonus possible.
