Get a hotel credit card now, while the welcome bonuses are high

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Many consumers’ spending habits have changed dramatically since the onset of COVID-19, and many folks continue to avoid travel due to the ongoing pandemic, so it might seem like an inopportune time to apply for a new travel rewards credit card.

In an attempt to win new customers and keep the ones they already have, though, many credit card issuers are extending extraordinary sign-up bonuses and slates of new benefits geared toward what people are actually purchasing these days.

That’s why now might be an excellent moment to apply for a new rewards credit card. Hotel credit cards, in particular, are posting some of the highest welcome offers we have ever seen and introducing new perks to boot.

So if you’ve been thinking about applying for a hotel credit card, but have put it off for the time being, here are six reasons why you might want to do so now.

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

1. Welcome bonuses are at all-time highs

At first glance, it might seem counterintuitive to raise the welcome offers on hotel credit cards since so few people are hitting the road. But that’s just what many issuers are doing in the hopes of getting people who might not otherwise be interested in one of their cards to apply.

For example, the Hilton Honors American Express Aspire Card is currently offering 150,000 bonus points after new cardholders spend $4,000 in the first three months of cardmembership, and the Hilton Honors American Express Surpass® Card is offering 130,000 points after you spend at least $2,000 on eligible purchases in your first 3 months of account opening.

If Marriott is more your speed, the Marriott Bonvoy Brilliant™ American Express® Card just launched a new limited-time offer, too. New cardholders can earn up to 125,000 bonus points – 100,000 after spending $5,000 within the first three months of card membership, and an additional 25,000 after their first account anniversary (offer ends January 13, 2021). That’s a total of 50,000 more points than are usually available with this card.

The Marriott Bonvoy Business™ American Express® Card isn’t far behind, offering 100,000 bonus points after making $5,000 in purchases within the first three months, plus up to $150 in statement credits toward eligible purchases on US advertising in select media in the first six months. With both cards, you also receive complimentary Platinum elite status for a year beginning in February 2021 and ending January 31, 2022, which is unprecedented.

For its part, the IHG® Rewards Club Premier Credit Card has also upped its offer to 140,000 bonus points after spending $3,000 on purchases within the first three months of account opening.

Any of those bonuses alone make these cards worth applying for. Keep in mind that you typically need to have excellent credit to qualify for offers like this. But if that’s you, why not get in on offers that haven’t been around for long and might not be back?

2. There are more interesting offers, too

It’s not just that sign-up bonuses are higher than ever before; some hotel credit cards are also offering more creative incentives for folks who apply.

The World Of Hyatt Credit Card, for instance, is offering two different sign-up bonus options. You can choose between earning up to 50,000 points (25,000 points after you spend $3,000 in the first three months, plus another 25,000 points after you spend $6,000 total in the first six months) and earning a $200 statement credit after your first purchase on the card plus a free night at any Category 1-7 Hyatt hotel after spending $3,000 in the first three months.  Note that you need to apply directly through Chase to access the second offer.

To choose which offer makes more sense for you, you’ll want to consider what hotel you’d like to stay at. The World of Hyatt award chart has eight categories, so the latter offer doesn’t let you use a free night at the highest-end category. However, if you don’t want to worry about counting points, having a free night stay that’s valid at the majority of Hyatt properties could simplify things. The bottom line is it’s nice to have choices.

3. You have more time to rack up rewards

If you’re one of the many travelers who has curtailed trip plans for the time being, you might wonder if you need a hotel credit card at all.

If you don’t plan to venture out ever again, you might not. But chances are, if you traveled before COVID-19, you’d like to travel again once the situation becomes more manageable, even if it is just within a car ride of home. While that might still be months away, it gives you extra time both to earn a new card’s bonus, as well as racking up points on everyday purchases that you can redeem for stays once you do start traveling again.

In the case of the The World Of Hyatt Credit Card, with one version of the sign-up bonus you can earn 25,000 bonus points after you spend $3,000 on purchases in the first three months of account opening, and an additional 25,000 bonus points after spending $6,000 total within six months of account opening. So if you’re not going anywhere for now, might as well go for that higher possible bonus over the extra three months and rake in twice the points.

4. Some cards waive annual fees for the first year

Still on the fence and wondering if it’s worth paying an annual fee for a card whose perks you might not be able to optimize for a while? That’s a smart question to ask yourself. At least the IHG® Rewards Club Premier Credit Card is waiving its $89 (waived the first year) annual fee for the first year, giving you 12 months to see if you like having it before actually going out-of-pocket to keep it.

5. You can enjoy limited-time benefits

Many issuers have been offering limited-time perks, such as bonus earning in new categories, or the ability to redeem statement credits for different types of purchases in order to help customers during these tough times.

Earlier this year, both the Hilton Honors American Express Aspire Card and the Marriott Bonvoy Brilliant™ American Express® Card let cardholders use annual statement credits that are normally only applicable either to hotel or on-property purchases toward charges at US. restaurants as well. The Marriott Bonvoy Brilliant™ American Express® Card and Marriott Bonvoy Business™ American Express® Card earn 10 points per eligible dollar spent at US gas stations, US restaurants including takeout and delivery, and participating Marriott Bonvoy hotels on up to $7,500 in each category through the end of October.

These benefits changes tend to last only a couple months, but as the situation evolves, some issuers might continue adding limited-time perks to keep cardholders interested. So even if you apply for a new card now, you might be able to take advantage of some in the coming months.

6. Boost your credit score

Some banks have been lowering certain clients’ credit limits over the past several months. In turn, this can lower your credit score by making the amounts you owe seem larger compared to your overall line of credit, even if you continue to spend responsibly and pay on time.

Your credit score might take a hit of two to five points per inquiry for a credit card application, over the long run. However, applying for a new card and getting a higher line of credit can eventually boost your score. Assuming that you use your card responsibly, keep your balances low and pay off your statements on time, of course.

The best hotel credit cards to apply for now

With all that in mind, here are some of the best current hotel credit card offers and why you might want to apply now.

Why apply now: Two words – welcome offer. The Hilton Honors American Express Aspire Card continues to extend one of the best bonus offers ever available for any hotel credit card. New members can earn up to 150,000 bonus points after spending $4,000 within the first three months of card membership. Its annual fee is $450, but this card is packed with other perks that you can put to use when traveling and otherwise, including an anniversary free weekend night that you can redeem at nearly any Hilton property around the globe.

Why apply now: If the Aspire card’s annual fee and spending requirement are outside your budget, consider this wallet-friendlier option, with an annual fee of just $95 (See Rates). Its welcome offer is not much less than the Aspire’s, at 130,000 points, which is the best it has ever posted, and requires just $2,000 in spending within three months to earn it.

Why apply now: Amex has done a pretty incredible job at finding creative ways for cardholders to use their travel-related benefits even during these sedentary times. This card let members apply the $300 in annual Marriott Bonvoy statement credits – usually only good for purchases at participating hotels – toward US restaurant bills for a few months. Chances are if this keeps dragging on, they might announce more limited-time perks like this. The card costs $450 per year (See Rates), but is offering up to 125,000 bonus points to new cardholders.

Why apply now: This card usually only offers 80,000 to 120,000 points as a bonus, but right now, you can score up to 140,000 points after spending $3,000 on purchases in the first three months after account opening.

Why apply now: More time to earn a sign-up bonus means more points to redeem when you’re ready to travel again. Earn 25,000 bonus points after spending $3,000 within three months of account opening, and 25,000 more after spending a total of $6,000 in six months. Those extra points are worth a free night at some of Hyatt’s nicest hotels, but can be redeemed for a couple nights in a combination of hotels in categories 1 – 4, too.

And as we mentioned above, you can choose to earn a $200 statement credit after your first purchase on the card plus a free night at any Category 1-7 Hyatt hotel after spending $3,000 in the first three months instead. Beyond that, if you apply by December 31 you can get 10 qualifying nights toward the next level of World of Hyatt elite status in 2020 and 2021.

Why apply now: Barclays and Wyndham Rewards recently overhauled their slate of co-branded cards, including this new piece of plastic, which is offering 45,000 bonus points (enough for up to six free nights) after you spend just $1,000 on purchases in the first 90 days. It also comes with automatic Platinum status, which can come in handy with perks like car rental upgrades and early check-in.

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