Is it a good time to apply for a credit card?

Written by
Jennifer Doss
Terms apply; see the online credit card application for full terms and conditions of offers and rewards

Is it a good time to apply for a credit cardPerhaps the COVID-19 pandemic has had you on the fence about applying for a new credit card. It has been a time of unknowns, after all, and adding a new credit card to your wallet maybe felt like a risky financial move.

With (hopefully) brighter days ahead, you may be starting off the year researching new credit card options. If you’re wondering if now is a good time to apply for a credit card, we’re happy to report that yes, it is. That’s because there are a number of credit card offers that are better right now than they have been in the recent past.

Our team searched our archives to see where credit card offers stood in January 2020, right before the start of the pandemic, and found that a number of our favorite cards have even better welcome offers now for new cardholders now than they did early last year. We were also reminded of some of the positive changes some issuers made throughout the year to help customers cope with the pandemic, such as extending the window cardholders have to earn a bonus, or revamping a card altogether by altering the welcome bonus plus adding new bonus categories, as was the case for the CardName.

If you held off on applying for a new card last year, you may be glad that you did. We don’t recommend applying for a credit card based solely on its welcome bonus, but if you like, and will utilize, the other perks of the card, a good new-cardholder welcome bonus is always a nice incentive. Here’s how the welcome offers compare for some of our favorite cards:

January 2020 vs. current credit card welcome bonus offers

CardName

  • Expired offer – New cardholders could earn $150 once spending $1,500 in the first three months of card membership.
  • Current offer – New cardholders earn an extra 1.5% cash back on every purchase (up to $20,000 spent) during your first year, which is worth $300 cash back.

Not only did Chase improve this card’s welcome bonus to new cardholders, but it also made the card more appealing overall by adding new bonus categories so that cardholders can earn more rewards on an ongoing basis. This time last year the Freedom Unlimited offered 1.5% cash back on all purchases, but now it offers this plus 5% cash back on travel purchased through Chase, 3% back at restaurants, and 3% at drugstores.

CardName

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  • Expired offer – New cardholders could earn 50,000 miles once spending $3,000 in the first three months of card membership.
  • Current offer – Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within three months from account opening.

The Venture’s welcome bonus is worth as much as $750 in flexible travel rewards. This is a great option for anyone without immediate travel plans on the horizon. Or, save those miles and put them towards a belated blowout vacation!

CardName

  • Expired offer – New cardholders could earn 60,000 Membership Rewards points once spending $5,000 in the first three months of card membership.
  • Current offer – New cardholders can earn 100,000 Membership Rewards points by spending $6,000 with the card within the first six months of card membership.

The points increased, plus the time frame to meet the spend threshold was extended, making this a great offer.  Terms apply.

CardName

  • Expired offer – New cardholders could earn 35,000 Membership Rewards points once spending $4,000 in the first three months of card membership.
  • Current offer – New cardholders can earn 60,000 Membership Rewards points by spending $4,000 with the card within the first six months of card membership.

This welcome offer is almost double what it was this time last year, plus new cardholders have double the time to earn it. Terms apply.

CardName

  • Expired offer – New cardholders could earn 80,000 points once spending $5,000 in the first three months of card membership.
  • Current offer – New cardholders can earn 100,000 points once spending $15,000 in the first three months of card membership.  

The welcome offer increased, but so did the spend threshold required to spend it. Don’t let this scare you off though. Those 100,000 points are worth as much as $1,250 in travel, so it’s definitely worth planning ahead in order to earn this bonus. If you have some big business purchases to make, try making them within your first three months of opening an account. Even little things add up like office supplies, ink cartridges, and new computer software. Or handle big-ticket items like office furniture, new computers or printers, etc. Think ahead on what you need to buy this year, and try and make some of those purchases once receiving your new card if it’s within your budget to do so. That $1,250 bonus is sure to come in handy in the long run, especially once you start rescheduling business travel.

CardName

  • Expired offer – New cardholders could earn $500 once spending $3,000 in the first three months of card membership.
  • Current offer – New cardholders can earn $750 once spending $7,500 in the first three months of card membership. 

Again, there’s a bit of a trade off here with the higher spend threshold, but an average spend of $2,500 a month for a business, at least for three months, doesn’t seem like too much of a stretch. If you know you have some bigger expenses on the horizon, if you can, plan accordingly and knock them out within the first three months of receiving your new card. An added bonus here is that the Chase Ink Business Cash offers introductory 0% APR on purchases for the first 12 months (then RegAPR), giving you extra time to pay off any new purchases you might put on the card within that first year.

CardName

  • Expired offer – New cardholders could earn $500 once spending $3,000 in the first three months of card membership.
  • Current offer – New cardholders can earn $750 once spending $7,500 in the first three months of card membership. 

What we said about the Ink Business Cash® card stands true here as well. The Ink Business Unlimited® has the same welcome offer (including 0% intro APR on new purchases for the first 12 months, then RegAPR), but it earns rewards on an ongoing basis a bit differently. The Ink Unlimited® earns unlimited 1.5% cash back on every purchase, whereas the Ink Cash® earns 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% back on the first $25,000 spent in combined purchases at gas stations and restaurants each year; and unlimited 1% cash back on everything else. So, if deciding between these two cards, it’s not so much about the welcome bonuses, but more so how your business spends money.

CardName

  • Expired offer – New cardholders could earn 75,000 Membership Rewards points once spending $15,000 on qualifying purchases within the first three months of card membership.
  • Current offer – New cardholders can earn 120,000 Membership Rewards points once spending $15,000 on qualifying purchases within the first three months of card membership.

An extra 45,000 Membership Rewards® points for the same spend is a pretty sweet upgrade to an already solid welcome offer. As with any of these offers, though, we don’t know how long this upgraded offer will last.

Bottom line

As you can see these offers are subject to change, so if applying for a new credit card is on your to-do list, now is the time to act. These welcome offers are a great way to start the year anew, and could go a long way towards rescheduled travel plans, bill pay, small business purchases, and more.

To see more great options, check out our full list of the best credit card welcome bonuses.

To see the rates and fees for the American Express cards mentioned in this post, please visit the following links:  CardName (See Rates and Fees; terms apply); CardName (See Rates and Fees; terms apply): CardName (See Rates and Fees; terms apply)

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Disclaimer:

The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

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