Read This Before Swiping Your Credit Card for Any Big January Purchases

Every year, my wife and I each open a new credit card -- usually right before we're about to make a big purchase. Things like booking travel, paying insurance bills, or replacing an appliance.

The main reason is because it's the easiest and quickest way for us to earn big welcome bonuses. Plus, if a card has a 0% intro APR offer, we might use that too to spread out payments interest-free.

Here's why January is one of the best times to do it.

Use a 0% intro APR to split up big costs

Let's say you've got a $2,000 purchase lined up or a big bill you need to pay.

With the right credit card, you could put that charge on a 0% intro APR card and pay it off over time without any interest. Some cards offer up to 21 months of no interest, so as long as you pay off your total balance before the intro period ends, it's like getting free financing.

That's way better than slapping it on a regular card and losing money to 20%+ interest.

Here's how it works:

• You open a card that offers 0% intro APR on purchases for a set period.
• Make the big purchase as soon as you get the card.
• Divide up the balance and pay it off monthly.
• You won't pay any interest.

Just make sure you're fully committed to paying the entire balance off within the intro period. If you don't, whatever is still owed at the end will start accruing interest at the standard rate.

Compare top 0% intro APR cards here and avoid interest on big 2026 purchases. Look for ones that have a long intro APR for new purchases.

Earn a $750+ welcome offer while you're at it

The other reason to open a new card when you've got a big purchase coming up is it's easier to earn a big welcome bonus.

Many rewards cards offer a welcome bonus, but you need to meet a minimum spend to earn it. For example, you might get $200 cash back when you spend $1,500 in the first three months.

If you're planning a large purchase anyway, you can knock out most (or all) of that requirement in a single shot.

Travel credit cards usually have nice sign-up bonuses. While the spending qualifications are a little higher (eg. need to spend $4,000 or $5,000 in the first few months), the bonuses can be much larger. It's not uncommon to earn $750 or more in travel value with the right card.

In our house, we each open a new rewards card every year. I keep tabs on the largest bonuses and time it on purpose for when we have big spending coming up.

A few ground rules to follow…

I'm always careful when recommending new credit cards to people. Because they only work in your favor if you've got good habits in place.

Rewards are great, but they're not worth it if you end up paying interest or getting yourself into debt troubles.

So here are a few simple rules my wife and I stick to:

• Always pay your bill on time and in full. There's no sense earning $500 in rewards if you end up paying $800 in interest.
• Watch out for annual fees. Some are worth it, some aren't. Just make sure the benefits outweigh the cost, especially if you're keeping the card long term.
• Don't open too many cards at once. We usually do just one each per year, and that's totally fine and easy to manage.
• Keep tabs on your credit score. Not just to qualify for better cards, but to track your progress over time and make sure it's not getting trashed.

Before you go all-in on a big-ticket expense this month, ask yourself if that spending could help you earn something too?

Whether that's a welcome offer worth $750, or saving $500 in interest through a 0% APR promo, these perks only happen when you use the right card.

Explore our top travel rewards cards with juicy welcome offers and make your next swipe count.