5 things to check before applying for your next credit card
Editor's Note
In the world of travel rewards, it almost always seems like a good time to get a new credit card.
But before you click "submit" on that next credit card application, take some time to evaluate a few things to help decide if the time is actually right for you — and if the card you're eyeing will actually align with your needs.
Below are five questions you should answer before hitting that card application submit button.
Related: The best current welcome bonuses
Is the credit card from a loyalty program you are familiar with and will use?
You don't want to apply for an increased bonus offer on the Timbuktu Airlines rewards card (not a real airline, obviously) if you have no plans to go to Timbuktu and they don't have any partner redemptions you can use.
But seriously, using a real-life example, I rarely travel on Delta Air Lines, so I've yet to feel like it was the right time for me to get a Delta credit card from American Express. Since Amex limits the number of credit cards a person can have, I've thought some of their other cards were a better fit for me and wanted to save my spots for those. That's not to say I'll never get a Delta card — just that the time hasn't been right yet, even when the offers are attractive.
Part of being familiar with the program is to know whether or not the points or miles you earn will expire. And if so, when?
You'll want to have some sort of idea in mind for how to use the points or miles you've earned if they have an expiration date. Or you'll need a strategy to keep your loyalty program account active, especially if you cancel the credit card after a period of time or aren't using the card for regular spending beyond the welcome bonus.
For example, Wyndham Rewards points expire four years after they're earned, even if you have new activity. And if you have no new Wyndham activity, your points expire after 18 months. While Wyndham has a lineup of credit cards with bonus offers of up to 45,000 points after meeting minimum spend requirements to help you maintain account activity, it's best to have identified some potential redemptions and plan just how many nights you'll be able to redeem points for using that welcome bonus within a couple of years.
Related: Best hotel credit cards
What are the spend requirements — and can you meet them?
In order to receive the welcome bonus, most banks require you to spend a certain amount of money within a set period of time. This is known as the minimum spend requirement. Minimum spending requirements can range from a few hundred dollars to tens of thousands of dollars.
Before applying, identify how much you need to spend to receive the bonus and make sure you can do so within the time period required. Not sure if you can spend $5,000 in 90 days? You may want to look for a different card with a lower spend or longer time period to hit the threshold.
I like to apply for new cards when I know I have large expenses coming up soon, such as paying my homeowners or car insurance premiums in full, planned car maintenance or home improvement projects or repairs.
The Business Platinum Card® from American Express stands out, thanks to the welcome offer. New cardmembers can find out their offer and see if they're eligible for as high as 300,000 bonus points after spending $20,000 on purchases in the first three months of card membership. Welcome offers vary, and you may not be eligible for an offer. It also comes with a $895 annual fee (see rates and fees).
At first glance, $20,000 sounds like an incredibly hefty sum, but it breaks down to $6,667 per month which is probably within the spending range for many with a small business. So to figure out whether or not I could meet the spend requirements, I'd analyze whether I thought I could comfortably spend that amount on the card within the prescribed number of months.
Related: Amex Business Platinum Card review
What are the bank's application rules?
It's no secret banks have caught on to people who only open credit cards to get the bonus and then close the card shortly thereafter. That's why many of them have developed rules or processes concerning new applications.
Amex's once-per-lifetime rule for a given card's bonus, Chase's 5/24 rule and Bank of America's 24-month restriction are among the most well-known application rules, but other banks may be wary of granting new credit if you have too many new accounts in the past six to 12 months. Bank rules are subject to change, and frequently do, so you'll want to make sure to read the fine print on the application to avoid a potential letdown later on of being denied a card or even worse, receiving the card but not the bonus.
Before applying, check your credit report to see how many cards you've opened in the past 6, 12 and 24 months. Is it more than five personal cards in 24 months? If so, a new Chase card will not be an option for you.
And if you're looking at American Express, check your history to make sure you haven't had the card before. If you have, you can apply and may even get approved, but won't get the welcome offer due to its once-per-lifetime rule.
Related: The ultimate guide to credit card application restrictions
What is your credit score?
I use Credit Karma to check my scores before applying for a new card. No, this isn't my actual FICO score, since Credit Karma uses the VantageScore, but it's close enough for me. Many banks and credit cards also offer credit scores as a free feature.
You'll want to make sure your credit score is high enough for the card you want to apply for, especially if you're looking at a premium card, such as the Chase Sapphire Reserve® (see rates and fees) or The Platinum Card® from American Express. Here's a look at the credit scores you need to get approved for some Amex cards and the ever-popular Chase Sapphire Preferred® Card.
For a quick boost to your credit score, pay your balances before your statement close date to avoid having them report to the credit bureaus. This will lower your debt-to-credit ratio. If you have some older inquiries that may drop off your report in the near future, wait and let them drop off for a potential increase in your score.
Related: Amex Platinum vs. Chase Sapphire Reserve: Which card is right for you?
How does this welcome bonus rank?
Welcome offers can be cyclical or limited-time offers.
It's a good idea to check the history of offers available for the card you're interested in with a little online research. Checking the history can help you determine how to rank the current bonus on a particular card versus previous bonuses on the same card or other similar credit cards.
If the card you're interested in is only offering a 30,000-mile bonus, but a few months ago it was 60,000, you may want to wait and see if the offer will increase again. These days, the banks are not necessarily matching better offers if the welcome bonus offer increases after you apply, so it's best to try and make sure you're applying for the highest offer you can.
We have a handy guide to the best time to apply for these popular travel credit cards, based on the cards' offer history. If you're looking for an easy answer, you'll probably find it there.
Related: The best rewards credit cards
Bottom line
A little bit of planning before your next credit card application can help increase the odds you're applying for a card that you'll be approved for. And that you'll be able to meet the minimum spending requirements and how to redeem the points to your benefit.
Related: Why there's no such thing as the 'best' credit card
For rates and fees of the Amex Business Platinum card, please click here.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.