- A travel rewards credit card could save you money on upcoming trips.
- It's important to apply for one at the right time, though.
- Aim to apply for a travel rewards credit card when your credit is in good shape, when you've got trips planned (and saved money for them), and if you haven't applied for other cards in several months.
It's a move that could make a lot of sense for you.
The great thing about using credit cards is getting rewarded for the purchases you make. And one credit card you may want to consider adding to your personal collection is a travel rewards credit card.
It's often the case that travel rewards cards offer extra perks that can help you save money when you're taking vacation or hitting the road. Many of these cards, for example, offer benefits like free checked baggage on flights and discounted in-flight purchases. And you may also be eligible for extra cash back on restaurant meals, theme park tickets, and fill-ups at the pump.
But it's important to apply for a travel rewards card at the right time. If you're thinking about doing so in 2023, here are some great reasons to move forward.
1. You have great credit
Eligibility for some of the best travel rewards card offers out there hinges on having great credit. If your credit score is in excellent shape, then 2023 could be a good time to apply for one of these cards. But if your credit needs some work, then you may want to consider holding off and working on boosting your credit score instead.
2. You've been saving for a lot of trips
It's generally not a good idea to charge trip-related expenses on a credit card and pay your balance off over time. Doing so will often mean spending money on interest, which will only add to your travel costs. But if you're anticipating a lot of travel in 2023 and have already been saving nicely for those getaways, then a travel rewards card could be a solid bet.
Also, a travel rewards card generally makes sense when you think you'll use it a lot. The reason? Some of these cards (though not all) charge an annual fee.
Now the perks involved can be generous enough to more than make up for that fee -- but that assumes you'll use those perks a lot. If you don't plan to do a lot of traveling next year, then you may want to pass on a travel rewards card. But if you already have a pile of cash earmarked for several trips, then one of these cards could easily be worth it.
3. You haven't applied for another credit card in months
It's generally a good idea to space out credit card applications by about six months to avoid a hit to your credit score, and also, to avoid painting a less favorable picture of yourself as a borrower. When lenders see that someone has applied for multiple credit cards in short order, it might lead them to wonder why that applicant suddenly needs so much credit.
But if it's been months since you last applied for a credit card, then you may be in a perfectly good position to apply for a new one in 2023. And if you think a travel rewards card is your best bet, there's no reason not to pursue one.
There's lots of savings to be reaped when you sign up for a travel rewards card. Just make sure to think things through carefully before applying for one in the new year.
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