3 Reasons to Apply for a New Credit Card in Early October

Credit card companies are constantly advertising their products in an effort to get consumers to apply. And generally speaking, it's a good idea to be cautious when applying for a new credit card.

For one thing, your credit score will usually take a small hit when you apply for a new credit card. And while that may not matter if your credit is great, if you're right on the cusp of a less-than-favorable score, a drop might compromise your ability to get financing when you need it.

Also, the more credit cards you have, the more you might be tempted to spend. And while that's a fine thing to do if you have the money, if funds are limited, you don't need the temptation to start racking up additional balances.

But if you're doing well financially and aren't already grappling with piles of credit card debt, then it could pay to apply for your next credit card in early October. Here's why.

1. It's a good time to snag a welcome bonus

Many credit cards offer welcome bonuses that require you to spend a certain amount of money within three months of opening your account. If you meet the spending threshold, you'll get a lump sum of cash back or reward points.

Credit card welcome bonuses aren't always so easy to snag. If you get a new card that requires you to spend $3,000 within three months for a $250 bonus, but you normally only charge $700 worth of expenses on a credit card each month, you'll be $900 shy.

But remember, the holidays are coming up. And your spending might increase substantially in November and December because of that. So it's a good idea to have your three-month welcome bonus period fall during a time when your spending is likely to naturally increase.

2. It's a good time to set yourself up for more cash back

You might find a credit card that offers extra cash back on everyday expenses like groceries and gas. If you apply for that card in early October and use it a lot that month and the next, then come late December, you might be sitting on your share of cash back you can use for holiday spending. That could, in turn, help you avoid debt, or minimize the holiday debt you rack up.

So, let's say you typically spend $800 a month on groceries and gas, and your new credit card gives you 3% back in those categories. This means that you could end up with almost $50 in cash back by the end of the year.

3. Travel benefits might come in handy during the holidays

You may be planning holiday travel in November and December. If that's the case, early October is a good time to apply for a new travel rewards credit card. That way, you might have your card in hand in time to book your flights.

Many travel reward cards offer money-saving perks like free checked bags on flights and bonus cash back or points on bookings. At a time when travel is apt to be expensive, that's a nice thing to benefit from.

Plus, let's face it. Air travel can be a bit of a nightmare during the holiday season. Jam-packed flights and weather-related delays can result in lost luggage and messed-up itineraries. Many travel reward cards offer insurance or other protection in situations like that, so it's good to have one at your disposal in time for the holiday rush.

Remember, applying for a new credit card might open the door to added spending you can't afford, and your credit score might take a small hit. So if either of those things are likely to be a problem for you, then it's probably best to hold off for a while on applying for a new credit card. But if you're otherwise in good financial shape, then it pays to consider the upside of applying for a new credit card at the start of October.