Cash News
Sorting out personal finances is never easy. So if the bank you chose for your savings account or mortgage loan already serves you well, why not use it for your credit card account?
While you can open a card with your existing bank, that’s not your only option — and it may not be the best.
When you open a new credit card — whether you want to earn travel rewards, score a great 0% APR offer, or simply build credit — it pays to explore all available options, not just those from your current bank.
Do you need an account with a bank to open a credit card?
In short, no. You don’t have to be an existing customer with a bank to open a credit card there. Widening your search to banks you don’t already have a relationship with may even lead you to more rewarding offers. Here are some things to consider as you weigh all the options.
Simplicity
Applying for a credit card with your bank can make the process easier. The financial institution you bank with will already have your information available, and you may be able to quickly apply through your online account or in-person with a bank teller.
Even after approval, having both your credit card and other accounts at the same bank may simplify your banking. You can easily transfer money from your checking or savings account to pay off your bill, and view multiple accounts within the same mobile app.
Benefits
Some banks offer special loyalty deals for credit cardholders who are existing bank customers.
For example, existing Bank of America Preferred Rewards customers with eligible deposit account balances or Merrill investing accounts can earn up to 25% to 75% more each year in rewards with select Bank of America cards.
Let’s say you open a Bank of America® Unlimited Cash Rewards Credit Card, which earns a flat 1.5% cash back on every purchase. If you spend about $1,200 monthly on the card (a total of $14,400 annually), you could earn $216 cash back over the year. But if you’re also eligible for the highest Preferred Rewards tier, you could increase those rewards by 75%, for an annual rewards total of $378.
When to open a credit card with a different bank
Nearly everyone can benefit from a broader credit card search. Limiting yourself to a single issuer makes it much more difficult to find the card that best fits your goals, budget, and regular spending.
Rewards
Maybe you bank with a small, regional bank in your community because you like the interest rates they offer on savings and the option to visit in-person — but it only offers one credit card option with no rewards.
You’ve had this credit card for a while, and it’s helped you build a great credit score. But now, you’re looking for an opportunity to save money with rewards on your spending. In this scenario, it makes sense to look beyond your bank at other issuers. Here are a couple of our favorites:
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Annual fee
$95
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Welcome offer
Earn 60,000 bonus points after spending $4,000 on purchases in the first 3 months (that’s $750 when you redeem through Chase Travel℠)
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Card type(s)
Travel
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Ongoing Purchases APR
21.49% – 28.49% Variable
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Recommended credit score
Excellent/Good
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Rewards rate
- 5x points on travel purchased through Chase Travel
- 3x points on dining, select streaming services, and online groceries
- 2x points on all other travel purchases
- 1x points on all other purchases
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Benefits
- Points are worth 25% more when you redeem for airfare, hotels, car rentals and cruises through Chase Travel
- Earn up to $50 in annual statement credits for hotel stays purchased through Chase Travel
- On every account anniversary, earn bonus points equal to 10% of your total purchases made the previous year
For a $95 annual fee, you can earn points toward future travel on the purchases you make with a Chase Sapphire Preferred. It has a generous welcome offer, and you’ll get a 25% boost on your Chase Ultimate Rewards points value when you redeem through Chase Travel.
As for ongoing rewards, earn 5x points on travel purchases through Chase Travel (not including annual hotel bookings that qualify for your $50 annual hotel credit) and 2x points on other travel. Plus, get 3x points on select streaming services, dining out, and online grocery purchases (not including Target, Walmart, and wholesale clubs like Costco); and 1x points on all other purchases.
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Annual fee
$0
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Welcome offer
Earn a $200 statement credit after spending $2,000 within the first 6 months
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Card type(s)
Cash-back
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Ongoing Balance Transfer APR
19.24% – 29.99% Variable
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Introductory Purchases APR
0% on purchases for 15 months
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Introductory Balance Transfer APR
0% on balance transfers for 15 months
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Ongoing Purchases APR
19.24% – 29.99% Variable
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Recommended credit score
Excellent, Good
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Rewards rate
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
- 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%)
- 1% cash back on all other purchases
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout
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Benefits
- 0% intro APR on purchases and balance transfers for the first 15 months
- Get a $7 monthly statement credit after spending $9.99 or more on a streaming subscription to the Disney Bundle, plus earn up to $15 in monthly statement credits after purchasing a Home Chef subscription
The Blue Cash Everyday is a no annual fee rewards credit card option that earns cash-back. You’ll start with a $200 statement credit after spending $2,000 within the first six months.
Then, you can earn 3% cash back at U.S. supermarkets, on U.S. online retail purchases, and at U.S. gas stations — each up to the first $6,000 you spend each year. Also earn 1% cash back on every other purchase. In addition to rewards, the Blue Cash Everyday offers a generous introductory APR for both new purchases and balance transfers.
Debt payoff
Similarly, maybe you opened a checking account and took out a mortgage loan with a large, national bank chain because it was convenient to access branches from anywhere. You’ve taken on some debt over the past few months and want to pay down your balances with a balance transfer — but your bank doesn’t have any current 0% APR offers.
With balance transfers in particular, keep in mind potential restrictions may apply. Many banks don’t allow you to use their balance transfer cards to pay down your existing loan. In other words, if you have a balance on a Chase card that you want to pay off using a balance transfer offer, you’ll probably need to look for a balance transfer credit card from another issuer — Discover, American Express, Bank of America, etc. — to do so.
In the situation above, choosing a dedicated balance transfer credit card from another issuer is likely the best option. Here are some cards with competitive 0% APR balance transfer offers today:
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Annual fee
$0
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Welcome offer
Earn a $200 cash bonus after spending $500 within the first 3 months
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Card type(s)
Cash-back
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Purchase APR
19.99% – 29.99% variable
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Introductory APR
0% intro APR on purchases and balance transfers for 15 months, then variable 19.99% – 29.99% APR
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Recommended credit score
Good, Excellent
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Rewards rate
- 5% cash back on hotels and rental cars booked through Capital One Travel
- 1.5% cash back on all other purchases
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Benefits
- 0% intro APR on purchases and balance transfers for the first 15 months
- Enjoy up to 6 months of Uber One membership statement credits (through 11/14/2024)
- No foreign transaction fees
The Quicksilver Card from Capital One may be primarily a cash-back credit card, but it also has a generous intro APR offer for cardholders looking to pay down debt. After the intro period ends, you can still earn cash-back rewards on your Quicksilver Card spending: 5% on hotels and rental cars booked through Capital One Travel and 1.5% flat cash back on everything else.
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Annual fee
$0
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Welcome offer
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back
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Card type(s)
Cash-Back
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Introductory Purchases APR
0% Intro APR on Purchases for 15 months
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Ongoing Purchases APR
20.49% – 29.24% Variable
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Introductory Balance Transfer APR
0% Intro APR on Balance Transfers for 15 months
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Ongoing Balance Transfer APR
20.49% – 29.24% Variable
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Recommended credit score
Excellent/Good
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Rewards rate
- Enjoy 5% cash back on travel purchased through Chase Travel℠
- 3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service)
- 1.5% on all other purchases
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Benefits
- You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts
- Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more
- 0% intro APR for 15 months from account opening on purchases and balance transfers (20.49% – 29.24% variable APR after that).
Chase Freedom Unlimited is another cash rewards credit card with a competitive generous introductory APR. That’s in addition to the Freedom Unlimited’s cash rewards, which include 5% cash back on travel through Chase Travel, 3% cash back on dining and at drugstores, and 1.5% cash back on everything else. Over the first year you’ll earn an extra 1.5% cash back on everything, up to the first $20,000 you spend — for a potential $300 in added rewards.
What to look for before opening a credit card
No matter which issuer you choose, here are a few things to think about when searching for the best credit card to add to your wallet.
Annual fee
The annual fee is the cost you’ll pay to own your card year after year. While many credit cards have no annual fee, some of the highest-value rewards and travel cards can carry annual fees upwards of $100.
Always compare the annual fee to the potential value you expect to get from the card. If you’re not going to earn enough in rewards to make up the fee cost — especially after any first-year bonus or limited-time benefits — it may not be the right card for you.
Welcome offer
As a short-term benefit, a credit card welcome offer can put a lot of money back into your pocket.
To start, you should compare welcome offers to make sure you’re earning a competitive bonus. Many no annual fee cash-back credit cards, for example, will offer $150-$200 cash back when you spend at least $500 within the first three months. Rewards cards with annual fees around $100, on the other hand, may offer 50,000 points or more after you spend $3,000 to $4,000 within the first three months.
With those required spending totals, you’ll also want to make sure that the amount required is within your budget over the given time period. You don’t want to risk taking on debt just to earn a welcome bonus.
Intro offer and APR
In addition to cash or points welcome offers, many credit cards also have 0% introductory APRs on new purchases, balance transfers, or both. If you’re planning to make a large purchase with your new card and want time to pay it down interest-free, look for 0% APR on new purchases. If you have existing debt that you want to pay down without taking on more interest, look for 0% APR for balance transfers.
By nature, these introductory offers don’t last forever. You should also know your card’s ongoing interest rate when you apply. Credit card APRs are notoriously high, so don’t be surprised if the range is upwards of 20% APR. It’s good to know what you can pay in interest charges, but even better to avoid them altogether by paying your balance off in full each month.
Rewards
Credit cards shouldn’t only be valuable in the first year, which is why looking at all the ongoing rewards and benefits are important.
For rewards credit cards with cash back, points, or miles rewards, make sure the bonus categories align with your regular spending. If you rarely go on vacations that require air travel, for example, you probably don’t want to choose a card with airfare as the highest-earning rewards category.
Most cards have at least a few everyday bonus categories, too. Compare these to find the card that works with your regular budget. For instance, you may choose a card with grocery rewards over restaurant rewards if you prefer cooking at home. Or, you might opt for a card with rewards on public transit instead of gas station rewards if you live in a city without a car.
Credit building and protections
They may not be as exciting as rewards and benefits, but credit card details that help you build credit and protect you from fraud are some of the most important reasons to use a credit card.
On any potential credit card issuer’s site, look for details about reporting your payments to credit bureaus and how you can access your credit score through your online account. You may also have access to credit monitoring and insights to help you keep track of your credit-building journey. This can be especially important if you’re opening a card for the first time and want to use it to build a great credit score.
Finally, credit cards should offer protections against fraud and theft on the purchases you make. This may include zero-liability protection to ensure you’re not responsible for unauthorized transactions, automatic notices of unusual card activity, and more. Some cards even offer purchase protection against damage or theft and extended warranties for eligible spending.
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the author(s) and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.