As the end of the year approaches, it may be a great time to consider opening a new premium rewards credit card. There are several reasons why this could be advantageous, such as the opportunity to take advantage of statement credits that reset with the calendar year or limited-time bonuses and promotions for holiday purchases or travel. Additionally, the increased spending that often occurs during the holiday season can help you meet the spending requirements for a big sign-up bonus. In this article, we will explore the reasons why opening a new premium rewards credit card before the end of the year can be beneficial and how to maximize the card’s benefits.
One of the main advantages of opening a new premium credit card in December is the possibility of double-dipping on savings within a short period. Many premium credit cards offer perks that reset each calendar year. By opening a new card in December, you can take advantage of these benefits at the end of the current year and the beginning of the next year. For example, some cards offer statement credits for airline incidentals or hotel bookings. By strategically timing your purchases and expenses, you can maximize these credits and save money on travel-related expenses.
Some examples of annual travel credits that can be double-dipped include up to $100 in statement credits for airline incidentals with the Bank of America Premium Rewards credit card, up to $200 in statement credits for airline incidentals with your preferred airline on the Amex Platinum Card and Business Platinum, and up to $200 in statement credits for prepaid Fine Hotels + Resorts or The Hotel Collection bookings with the Amex Platinum. By taking advantage of these credits at the end of the year and the beginning of the next year, you can effectively save money on travel expenses.
Another benefit of opening a new premium credit card before the end of the year is the opportunity to leverage the increased spending that typically occurs during the holiday season to meet the spending requirements for a sign-up bonus. Many premium credit cards offer generous sign-up bonuses that require a certain amount of spending within a specified time period. By using your new card for holiday purchases, such as gifts, vacations, or decorations, you can easily meet these spending requirements and earn the sign-up bonus. This can be a great way to jumpstart your rewards earnings and maximize the value of your new card.
Furthermore, opening a new premium credit card before the end of the year can provide you with more opportunities to use your points and miles. Whether it’s the sign-up bonus or the earnings from your everyday spending, having a new premium credit card allows you to accumulate more points and miles that can be used for travel or other redemptions. Some airlines and hotel programs have also expanded their redemption options, allowing for more flexibility in using your rewards. For example, Air France-KLM Flying Blue has expanded its free stopover policy to all partner airlines, not just when flying Air France or KLM. This means that you can now book stopover flights with more airlines and destinations, providing more options for using your points and miles.
In addition to the personal benefits, opening a new premium credit card before the end of the year can also provide opportunities to gift perks to others during the holiday season. Many premium credit cards come with great benefits that can be shared with friends and family. For example, with the Amex Platinum Card, you can make qualifying purchases from Saks Fifth Avenue and receive statement credits for these purchases. This means that you can gift items from Saks Fifth Avenue to your loved ones without incurring any out-of-pocket costs. You can also gift lounge access to a traveler in your life by adding them as an authorized user on your premium credit card. This allows them to enjoy lounge access before their flights, which can be a valuable perk for frequent travelers.
Lastly, one of the biggest reasons to consider opening a new premium credit card before the end of the year is the generous welcome offers that are currently available. Welcome offers provide a significant amount of points or miles as a bonus for meeting the spending requirements within a specified time period. By using your new card for holiday shopping, you can easily meet these spending requirements and earn a windfall of points or miles. Some current welcome offers include the Capital One Venture X Business Card, which offers 150,000 bonus miles after spending $30,000 in the first three months, and the Amex Business Platinum, which offers 120,000 points after spending $15,000 in the first three months. These welcome offers can provide a significant boost to your rewards earnings and help you start the new year on the right financial foot.
In conclusion, the end of the year can be a great time to open a new premium rewards credit card. By taking advantage of statement credits that reset with the calendar year, limited-time bonuses and promotions, increased holiday spending, and generous welcome offers, you can maximize the benefits of your new card. Whether you’re looking to save money on travel expenses, earn more points and miles, gift perks to others, or qualify for a substantial sign-up bonus, opening a new premium credit card before the end of the year can be a smart financial move. So, consider adding a premium credit card to your wallet this holiday season and reap the many rewards it has to offer.