While the pandemic upended consumers' spending habits — with people more hesitant to shop in-person or to enjoy a dinner out — it didn't significantly change credit card usage. According to a new 2021 JD Power study looking at the experiences of Americans who applied for, or were thinking about applying for, credit cards in the past year, people were as likely to sign-up for travel credit cards in 2020 as they have been in years past.
The results of the study showed that travel credit card acquisition and satisfaction remained steady, says John Cabell, director of banking and payments intelligence at JD Power. He notes that credit card issuers have responded to consumers' changing spending behavior by adapting and changing their rewards programs.
"It will be interesting to see as consumer behavior continues to evolve how these programs will continue to adapt, and whether [credit card] issuers will continue to offer as much flexibility as they have in the last few months with different sorts of rewards programs," Cabell says. "There's definitely a competition right now with promotional offers and bonus offers."
The study found people were more likely to sign up for a new card in order to get a better rewards program, collect a sign-up bonus and/or receive better credit card terms.
There are no shortage of tempting welcome bonus offers at the moment, with cards like Chase Freedom Flex℠, Chase Sapphire Preferred® Card and the Capital One SavorOne Cash Rewards Credit Card (see rates and fees) all offering new cardholders a good reason to sign up.
Below, Select breaks down some of the best bonuses you won't want to miss.
The Chase Freedom Flex
The Chase Freedom Flex℠ offers new cardholders a bonus of $200 if you spend $500 within three months of opening the account. With this card, there's no annual fee, and you can get 5% cash back on up to $1,500 worth of purchases each quarter in rotating categories, then 1%. (Activation is required — read more about the Chase 5% cash-back calendar).
Chase Freedom Flex℠
Rewards
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
Welcome bonus
Earn a $150 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% cash back on grocery store purchases (excluding Target® and Walmart®)
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
20.49% - 29.24% variable
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Credit needed
Excellent/Good
Member FDIC. Terms apply. Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Read our Chase Freedom Flex℠ review.
The Chase Sapphire Preferred Card
New cardholders signing up for a Chase Sapphire Preferred Card can earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
The bonus is worth $600 if redeemed for cash back, and 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel. The Sapphire Preferred also gives cardholders a $50 Annual Chase Travel Hotel Credit, plus 5X on travel purchased through Chase Travel℠, 3X on dining, select streaming services and online groceries, 2X on all other travel purchases, 1X on all other purchases, plus more.
This card does have a $95 annual fee, but the welcome bonus covers the cost of the annual fee many times over. There are no foreign transaction fee, making it a great option for international travelers.
Chase Sapphire Preferred® Card
Rewards
Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Chase Travel Hotel Credit, plus more.
Welcome bonus
Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.
Annual fee
$95
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Read our Chase Sapphire Preferred® Card review.
The Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card gives cardholders a one-time $200 cash bonus if they spend $500 within the first three months of opening the account. Beyond that, there's no annual fee or foreign transaction fees (see rates and fees), and the card offers 3% cash back on dining and entertainment, 3% on eligible streaming services, 3% at grocery stores (excluding superstores like Walmart® and Target®) and 1% on all other purchases. It's great for people who anticipate dining out or attending concerts more in the near future.
Capital One SavorOne Cash Rewards Credit Card
Rewards
Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024, 8% cash back on Capital One Entertainment purchases, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel; Terms apply, 3% cash back on dining and at grocery stores (excluding superstores like Walmart® and Target®), 3% cash back on popular streaming services and entertainment, and 1% cash back on all other purchases
Welcome bonus
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Annual fee
$0
Intro APR
0% intro APR on purchases and balance transfers for 15 months
Regular APR
19.99% - 29.99% variable
Balance transfer fee
3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees. Terms apply.
Bottom line
Regardless of whether you're searching for a credit card to get a big bonus or to reap more rewards or cash back on your purchases, there are a multitude of different cards available that offer you both.
It's important to remember that you should avoid overspending in order to get a credit card welcome bonus, as you'll pay more in interest charges if you carry a balance than you'll make up in points or cash back.