The holiday frenzy really gets going in November. Between ordering the turducken, trying to refashion a lumpy futon into a guest bed and mentally preparing themselves for the trauma that Black Friday brings, people are busy. We’re sorry to add something else to your to-do list, but you should probably consider applying for a travel credit card this month, too.
November is an ideal month to apply for a travel card. You’re more likely to secure great sign-up bonuses because it’s a popular month for limited-time offers, and it’s also an optimal time to start earning rewards for summer travel. Plus, the holiday season typically brings higher spending, which helps you earn points or miles faster.
[See: 12 Habits to Help You Take Control of Your Credit.]
1. The biggest sign-up bonuses tend to come in November. Travel credit cards offer a range of perks and rewards, but the sign-up bonus is always a favorite. Spend a certain amount of money within a specified period of time — generally between $1,000 and $5,000 in one to six months, depending on the card — and you’ll receive thousands of points or miles to be redeemed for travel.
A 2016 NerdWallet study analyzing trends in limited-time offers — that is, increased credit card sign-up bonuses — found that November is the best month to get a general travel or co-branded airline card. According to the study, the difference between getting a regular bonus and a limited-time offer can range from 5,000 to 50,000 miles. Applying for a card at a less-than-optimal time results in missing out on an average of 15,338 miles. That equates to an average of $177 worth of free travel.
There’s no guarantee that a specific card will have a limited-time offer this month, but based on historical data, November offers the best chance. If your favored card’s bonus doesn’t spike this month, do a little research. Google the card name along with “limited time offer” to try to pin down when it has offered better bonuses in the past. Oftentimes, an issuer’s limited-time offers follow a seasonal trend.
[See: 10 Easy Ways to Pay Off Debt.]
2. Summer will be here sooner than you think. Another finding from the study is that it takes a minimum of five months to apply for a card, receive it in the mail, earn the card’s sign-up bonus and then use that bonus to book a trip far enough ahead of time to get a good rate. This means that if you apply for a card in November, you can use your miles to book a trip as early as April. So if you have a spring or summer vacation planned, you might not have to pay for the flight or other travel expenses.
Even if you choose not to apply for a card this month, keep the five-month rule in mind for future vacations. When you’re in the market for a card and want to use the sign-up bonus on a trip, don’t wait to apply. You don’t want to risk having to pay more — or not finding a good seat — because you booked your trip too late.
[See: What to Do If You’ve Fallen (Way) Behind on Your Credit Card Payments.]
3. Holiday spending can help you earn free travel faster. Consumers plan on spending $935.58 on average during the 2016 holiday shopping season, according to the National Retail Federation. This includes gifts for themselves and others, food, decor, flowers and greeting cards. It doesn’t include travel, which can be extra expensive as everyone makes their way home for the holidays.
Now might also be a good time to buy any big-ticket items you’ve been putting off. Because it’s the holidays, there’s a good chance you’ll find what you want at a discount. By putting it onto your new credit card and then paying it off right away, you’ll get closer to meeting the sign-up bonus spending requirement, while also racking up rewards points and avoiding interest.
Ongoing rewards on travel credit cards are great, but they take time to earn. If you don’t want to delay your gratification, apply for a general travel or airline card in November, earn a supersized sign-up bonus and use the miles to take your next trip for free (or almost free, at least).
More from U.S. News
9 Ways to Save When Holiday Shopping With Credit Cards
12 Simple Ways to Raise Your Credit Score
3 Reasons to Apply for a Travel Credit Card in November originally appeared on usnews.com
