Should You Open a New Credit Card in 2024?

The start of a new year is a great time to try new things. And, for some people, getting a brand-new credit card may be one of those tasks to take care of. A new credit card can come with many advantages in the right circumstances -- but, in other situations, applying for a card could be the wrong move.

Should you open a new credit card in 2024? Here's how you can decide.

Do the rewards programs on your current cards match your spending habits?

It makes good sense to maximize the rewards you earn on your credit cards, so you'll want to be sure your current cards offer bonuses for the spending you do the most. Otherwise, you're leaving free money on the table by not getting a card that's a better fit.

Say, for example, you have a bunch of growing teens and you're spending $1,800 a month on groceries. If none of your credit cards provide bonus rewards and you're earning only 1% cash back on all this spending, you'd get $216 in cash back.

But if you opted for the Blue Cash Preferred® Card from American Express, you'd get 6% back on groceries at U.S. supermarkets for up to $6,000 a year in purchases (terms apply). With that card, your rewards would add up to $516 a year -- more than double the amount your current cards offer.

In this case, opening a new card -- one of the best grocery cards -- could make good sense. Check your credit card statements, see where you spent the most, and then be sure your current cards have some kind of bonus offer for that spending category. If not, see about signing up for one in 2024.

Could you earn a new card member bonus?

Many credit cards offer welcome bonuses to new members, like $500 after you spend $3,000 within three months of account opening. If you want free money, haven't opened a ton of new cards recently (more than two or so in the last five years), and can qualify for a card with this kind of spending bonus, it may be worth doing so.

Just be sure that you're going to spend enough to hit the bonus target, as it wouldn't make sense to spend more than you'd planned just to get some extra credit card rewards.

Will you be taking out any large loans soon?

Finally, you need to consider if you're going to be taking out any big loans anytime soon. If you're going to be getting a mortgage or car loan, for example, you'll probably want to hold off on opening a new credit card.

Opening a new card means getting an inquiry on your credit report when the lender runs a credit check before approving you. You'll also have a brand-new account, resulting in a lower average age of credit. Both of these things could hurt your credit score and make your bigger loan costlier.

By asking yourself these three questions, you can decide if you should open a new card in the new year. If you decide to open a new card, do your research to find a card that's a perfect fit.