Business

With record-high welcome bonuses and the holiday shopping season approaching, now is the perfect time to apply for a new rewards credit card

This post contains links to products from our advertisers, and we may be compensated when you click on these links. Our recommendations and advice are ours alone, and have not been reviewed by any issuers listed. Terms apply to offers listed on this page. Read our editorial standards.

retail cyber online shopping gift card holiday black friday sale credit card
You can use your holiday spending to unlock a credit card welcome bonus.

  • Earning a credit card bonus is the easiest way to boost your points, miles, or cash-back balances.
  • Most welcome bonuses require meeting a minimum spending requirement in a certain timeframe.
  • If you apply now, you can put your holiday spending toward this requirement to earn maximum rewards.
  • Read Insider’s guide to the best rewards credit cards.

There haven’t been many opportunities to describe anything as “perfect” in 2021, but there is one silver lining to this incredibly turbulent year: credit cards have never been more rewarding.

This might sound surprising. If you’ve been paying attention to the credit card landscape, you’ve probably heard that during the pandemic, banks increased requirements for approval and slashed credit limits on existing cards. While banks still have tighter restrictions to avoid riskier customers, they are always looking to attract low-risk, high-earning customers.

And right now, they are using some very tempting offers to catch attention, including some that are only available for a limited time.

Here are three reasons why you should consider taking advantage of these offers sooner than later, followed by a look at some of the best welcome bonuses available now.

If you act now, your holiday shopping will give you a gift, too

What feels better than putting a smile on someone’s face when they unwrap your gift? Putting a smile on your face at the same time with a bunch of reward points or cash back.

Read more: The best credit cards for Black Friday and Cyber Monday shopping

What did you spend on gifts for your family, friends, and colleagues last year? Take a look back at that spending activity from last year, and think about what you have in store for shopping this year. By opening a new rewards credit card, you can put every holiday purchase on it to fast-track your way to one of these impressive bonus opportunities. 

When you can think about taking a trip, you just might feel happier

2021 has included plenty of reasons to feel sad, and if you’re still working from home, you may worry that you’ll be stuck in a pixelated Zoom window forever.

Read more: 5 real-life trips taken by credit card reward travel experts to inspire your vacation planning — especially if you have lots of points and miles to burn

Fear not — travel will return. As you start earning points, you can start thinking about where you’ll use those points to go for free. According to all the scientific studies listed in this National Geographic piece, the act of simply planning a trip is enough to make a positive impact on your mental health. And let’s face it: We can all use something to smile about right now. 

A new card can help your credit score — if you’re responsible

Earning welcome bonuses and putting trip itineraries on your horizon are short-term benefits. What will applying for a new rewards card for you now do in the long run?

As long as you pay your balance in full each month, a new credit card can have a big impact on your credit score. A higher credit limit across all cards can improve your credit utilization ratio, which is a key factor in determining your overall financial health.

Read more: 5 ways opening a credit card and using it responsibly can boost your credit score

So, when you’re applying for a bigger life-changing financial product like a mortgage or a car loan, the additional credit from your new rewards card may be able to help you in securing another reward: a lower interest rate.

Several credit cards are offering excellent welcome bonuses

If your credit score is excellent, take a look at some of the huge credit card welcome bonus opportunities that are available right now. A welcome bonus is the quickest and easiest way to earn more points, miles, or cash back, so they’re a key element to any award traveler’s strategy.

Chase Sapphire Preferred® Card: Earn 80,000 points after spending $4,000 in the first three months

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card has been my go-to credit card for the past few years. The annual fee comes in at a reasonable Chase Sapphire Preferred® Card, and the bonus Ultimate Rewards points for travel and dining have been especially valuable during the times when I’ve been on the road a lot.

Read more: Chase Sapphire Preferred credit card review

The welcome bonus is 60,000 points after spending $4,000 on purchases in the first three months of account opening. With a 25% increase in value when used for booking travel, this bonus is worth $750 in travel — and it may be worth even more if you transfer those points to one of Chase’s travel partners for something super awesome, like a business-class seat.

Capital One Venture X Rewards Credit Card: Earn Capital One Venture X Rewards Credit Card

Those “What’s in your wallet?” Capital One commercials feel especially relevant now that the bank’s brand-new Capital One Venture X Rewards Credit Card is offering a welcome bonus of Capital One Venture X Rewards Credit Card — worth $1,000 in travel, or potentially more if you transfer your miles to airline and hotel partners. In addition, new cardholders receive up to $200 in statement credits toward vacation rental purchases (like Airbnb and VRBO) made with their card in the first year.

Read more: Capital One Venture X credit card review

This is a premium credit card, but it’s priced lower than most similar cards at Capital One Venture X Rewards Credit Card. It offers great benefits, including up to $300 per year in statement credits toward travel booked through Capital One, Priority Pass and Capital One airport lounge access (even for authorized users), a 10,000-mile bonus on each account anniversary (worth $100 in travel), and Visa Infinite travel and purchase benefits.

Citi Premier℠ Card: Earn Citi Premier® Card

Citi Premier® Card

The Citi Premier℠ Card is a great choice if you want to earn bonus points in lots of everyday spending categories. It’s currently offering Citi Premier® Card.

Read more: Citi Premier credit card review

Cardholders earn 3x points on air travel, gas stations, restaurants, supermarkets, and hotels, and 1 point per dollar on everything else. Citi ThankYou points are worth 1 cent each when you redeem them for travel through the Citi Travel Portal, merchandise, gift cards, or cash back. But it’s possible to get even more value when you transfer rewards to one of Citi’s airline and hotel partners.

A smaller spend can still rack up a sizable bonus now

Chase Freedom Flex℠

If you’re aiming to avoid annual fees or you’re worried about having to spend a big chunk of money to meet a minimum spending requirement,  you can still cash in on the uptick in rewards activity with the Chase Freedom Flex℠ or Chase Freedom Unlimited®.

Both cards have a welcome bonus of a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. Plus, new cardholders can earn 5% cash back (5x points) at grocery stores (excluding Target and Walmart) on up to $12,000 in spending during the first year of account opening (then 1x).

Related Content Module: More Credit Card CoverageRelated Product Module: Credit Cards

Read the original article on Business Insider

Powered by WPeMatico

Click to comment

You must be logged in to post a comment Login

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

To Top