NerdWallet's 2016 Travel Credit Card Study Finds 83% of Consumers Are Forfeiting Travel Rewards

"Americans love travel credit cards, but unfortunately they aren't making the most of them,"  says Sean McQuay, NerdWallet's credit card expert. "Many consumers know that signing up for a travel card means getting a sign-up bonus, but most don't realize that there are limited-time offers that often push those sign-up bonuses up by an average of nearly $200 and that those offers follow a seasonal pattern every year. By planning ahead, they can significantly increase the value of their credit cards by signing up at the right time."

Best Time to Apply

NerdWallet's 2016 Travel Credit Card Study analyzes patterns in limited-time offers and credit card applications to help consumers get the most out of their travel rewards cards. Based on our analysis of the most popular general travel, airline, hotel, co-branded and issuer-branded cards, we've identified the best months of the year to apply for each card type based on the sign-up bonus.

NerdWallet also found that consumers should give themselves about five months between applying for a card and taking a trip to fully take advantage of a sign-up bonus. According to the study, five months gives them sufficient time to receive the card, hit the minimum spending requirement to qualify for the sign-up bonus and book their trip 47 days in advance, which is recommended by travel experts.

"Waiting for the best month to apply for cards based limited-time offers might be useful for some, but it won't work for everyone," says McQuay. "If you already have a good rewards card, it's probably worth the wait to get the limited-time-offer sign-up bonus. But if you aren't earning rewards, it may be best to go ahead and take the sign-up offer available today to ensure you begin accruing rewards immediately. Ultimately, only you can make the best decision about when you apply for a credit card."

Additional Resources

• NerdWallet's 2016 Travel Credit Card Study
• NerdWallet's Best Credit Card Sign-up Bonus Offers of 2016

About NerdWallet 
NerdWallet gives consumers clarity around key financial decisions at every stage of their lives. When it comes to credit cards, insurance, loans or expenses such as hospital costs, consumers make almost all of their decisions in the dark. NerdWallet is changing that, helping guide consumers' decisions with free, accessible tools, research and expert advice that can't be found anywhere else. We call it putting knowledge in your wallet.

Full Study Methodology Can be Found Here

Contact
Keely Spillane
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SOURCE NerdWallet

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