The offer mentioned below for the Citi Premier® Card is no longer available.
If you're looking to apply for a credit card, you may wonder if there's a best time to submit an application. There are always limited-time bonus offers that may tempt you to apply, but that doesn't mean it's the best time to sign up.
Before you apply for a credit card, you should take a moment to consider why you want a new one. Are you opening a new card to take advantage of an introductory financing offer? Or are you just tempted by the promise of a lot of rewards if you spend a certain amount of money within a certain time frame? Welcome bonuses are great, as long as you have the means to pay off the card in full at the end of your billing cycle.
Beyond the motives for why you want a new card, you should also consider how you'll use it. That can help you choose the best card for your needs.
Below, CNBC Select takes a look at the best times to apply for a credit card.
When you turn 18
Financial experts recommend young people start building credit as soon as possible. A good time to apply for a credit card is when you turn 18, since that's the minimum age requirement for opening your first card.
College student credit cards are a smart choice for students looking to establish credit. Some cards even offer students the chance to earn cash back. The Discover it® Student Cash Back has no annual fee and, upon activation, offers cardholders the ability to earn 5% cash back on the first $1,500 in purchases in rotating categories each quarter (when you activate), then 1% cash back. Check out Discover's 5% cash-back calendar.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 16.74% - 25.74% applies
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. You could turn $50 cash back into $100. Or turn $100 cash back into $200
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
- Redeem cash back for any amount
- No annual fee
- Terms and conditions apply
Balance Transaction Fee
0% at the Transfer APR; 5% at a promotional APR that Capital One may offer to you at any other time
To build or rebuild credit
If you have less than stellar credit, it's a good idea to work on improving your credit score. Applying for a secured card is a good way to establish credit and help raise your credit score. These cards are geared toward people with less than stellar credit scores and can provide better qualification chances than other cards.
To get out of debt
If you're struggling with credit card debt, you may want to consider a balance transfer. You can transfer high-interest debt to a balance transfer credit card offering no interest for up to 21 months. This allows you plenty of time to pay off debt without expensive interest charges.
If you want more time to pay off debt, the Citi Simplicity® Card offers a 0% APR for the first 18 months on balance transfers and purchases from date of account opening (after, 17.74% - 28.49% variable APR; see rates and fees). Balance transfers must be completed within four months of account opening. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). But this can be worthwhile if you're paying high interest charges.
When you plan on making a big-ticket purchase
If you have a large purchase coming up, it can be beneficial to open a credit card offering no interest for over a year. This allows you to pay off the balance over time without incurring interest.
The Capital One Quicksilver Cash Rewards Credit Card offers a 0% intro APR for the first 15 months on purchases (then 18.74% - 28.74% variable APR). If you make a big ticket purchase (or purchases), such as new furniture or appliances, during the intro period, you can save a great deal on interest charges.
For example, if you use the Capital One Quicksilver Cash Rewards Credit Card to charge $1,500 at card opening, and then make $100 monthly payments, you'd pay off the debt in 15 months with no interest.
When there's a great welcome bonus
Credit cards often boast limited-time welcome bonuses or exclusive offers that can add up to enhanced rewards during the first few months after account opening. To maximize the amount of rewards you can earn, you first have to meet the spending requirements.
For example, the Citi Premier® Card is offering new cardholders a welcome bonus of 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening. Plus, for a limited time, earn a total of 10 ThankYou® Points per $1 spent on hotel, car rentals, and attractions (excluding air travel) booked on the Citi Travel℠ portal through June 30, 2024.
Avoid opening a card solely for the welcome bonus. While it's a nice perk, consider the other rewards and fees before applying to make sure the card is a good fit and that you can easily afford any spending requirements.
You're pre-qualified for a card
Many card issuers provide pre-qualification forms, which allow you to gauge your chances of qualifying for a credit card. Filling out a pre-qualification form does not hurt your credit, so it's a great way to shop around for the best offers. Sometimes these forms will come with targeted welcome offers, allowing you to earn more rewards.
Once you submit an actual application, you give the card issuer permission to check your credit, which is called a hard inquiry (or "hard pull"). This can temporarily lower your credit score a few points, but it'll bounce back in a few months.
If you pre-qualify for a card, that does not guarantee you'll be approved, since issuers take more factors into consideration, such as your monthly housing payment and employment status, with an official application.
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Bottom line
There are many reasons to apply for a new credit card. Whether you're looking to rebuild your credit or earn an enticing welcome bonus offer, make sure that the card actually fits your needs.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Information about the Citi Simplicity® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
