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 (see rates and fees) and the Capital One Savor Cash Rewards Credit Card 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 limited time bonus of $250 after you spend $500 on purchases in your first 3 months from account opening. 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).
The Chase Freedom Flex® is an excellent cash-back card with generous rotating quarterly categories. In additional the rewards, you also can take advantage of the intro APRs for purchases and balance transfer for more than a year.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
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 Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
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%
The Chase Sapphire Preferred Card
New cardholders signing up for a Chase Sapphire Preferred® Card can earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
The Sapphire Preferred gives cardholders a $100 Annual Chase Travel Hotel Credit, plus 5X on travel purchased through Chase Travel℠, 3X on dining, on vacation homes, on gas & EV charging, on top streaming services and online groceries (excluding Walmart, Target, and wholesale clubs), 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.
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections, flexible rewards and more.
- You can transfer rewards to all of Chase's travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Long list of travel and shopping protections
- Annual Chase Travel hotel credit
- Has an annual fee
- Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, 3x on vacation homes, 3x on gas & EV charging, 3x on top streaming services and online groceries (excluding Walmart, Target, and wholesale clubs), 2x on all other travel purchases, 1x on all other purchases
- Earn up to $100 in statement credits each account anniversary year for hotel stays through Chase Travel
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Emergency Evacuation and Transportation and more
- Get a year of complimentary Apple TV when activated by December 31, 2026 - a value of $156.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for 12 months when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Receive one statement credit of up to $120 every four years as reimbursement for the application fee charged to your card for a Global Entry, TSA Precheck® or NEXUS application.
- Transfer points to leading airline and hotel loyalty programs
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
The Capital One Savor Cash Rewards Credit Card
The Capital One Savor Cash Rewards Credit Card allows cardholders earn $200 Cash Back after you spend $500 on purchases within 3 months from account opening. Beyond that, there's no annual fee or foreign transaction 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.
The Capital One Savor Cash Rewards Credit Card is one of the most rewarding options for earning cash back in categories such as entertainment and dining without paying an annual fee. Plus, you can combine its rewards with Capital One's travel cards to convert them into transferable miles.
- One of the most rewarding cash back cards for entertainment and streaming services
- No annual fee
- Easy-to-earn welcome bonus
- High APR
- Requires a good to excellent credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- $0 annual fee and no foreign transaction fees
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 12 months; 18.74% - 28.74% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
Introductory fee of 3% of the amount of each transferred balance that posts to your account during the first 12 months that your account is open. After that, 4% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you at any other time.
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.
