Credit card companies compete fiercely over the sweet market segment – those with good credit and have the capacity to make purchases with ease. This includes professionals and heavy users who are financially responsible, and they deserve sweet offers. After all, credit card companies make a bulk of their revenue from merchant charges, not finance charges as otherwise assume by many people.
The Prototypical Credit Card Bonus Target
While it is impossible to cite every detail on this, our experiences tell us there are a collection of traits that make you a favorite of these bonus offers. Or, if you fit the profile and don’t receive the targeted offers, you can simply apply for them yourself.
- Over 3 years of credit history, preferably over 5 years
- Free of blemishes on your credit report
- At least 720 FICO, preferably over 760
A Few Words of Warning
Credit card bonuses are higher than, say, what you get for test driving a car. That is to compensate the fact that they don’t necessarily pull your credit when you test drive, but they will do a hard pull on your credit when you test drive a new credit card. Excessive hard pulls will lower your credit score. Therefore, you will want to think twice about applying for credit cards for the bonuses, however good they seem, if you are one of the following:
- Planning on applying for a mortgage loan in the next 6-12 months,
- Planning on applying for a car loan in the next 6-12 months,
- Or in general, planning on applying for credit for any big purchase.
The rule of thumb is that a 0.1% increase on your mortgage interest rate will far out-weight the bonus you will ever receive from any credit card bonuses.