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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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5 things to check before applying for your next credit card
Senitra is a credit cards expert and TPG contributor. Senitra spent seven years working in marketing, has been a freelance writer for numerous websites and worked as a full-time reporter and editor for several daily and weekly newspapers in Texas, New Jersey and Pennsylvania. She has been quoted on her credit card expertise in MarketWatch, Consumer Reports and Kiplinger.
September 30, 2024 • 8 min read
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Quick summary
The article outlines five essential questions to consider before applying for a new travel rewards card.
It emphasizes aligning the card with loyalty programs you actively use and understanding point expiration policies.
Evaluating minimum spend requirements and your ability to meet them within the set timeframe is crucial.
Awareness of issuer-specific application rules and your credit score can help maximize approval chances and bonus eligibility.
What to consider
Check loyalty program terms for point expiration and redemption options before applying.
Review the card's minimum spend requirement and ensure upcoming expenses align with the threshold and timeline.
Application rules, such as limits on new accounts or once-per-lifetime bonuses, may affect eligibility.
What you'll miss from the article
A step-by-step guide to evaluating current welcome offers and understanding how to time your application for the best possible bonus.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
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.
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.
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.
BERNARDOBODO/GETTY IMAGES
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.
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.
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.
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.
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.
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.
For rates and fees of the Amex Business Platinum card, please click here.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
