It’s your last chance to use credit card benefits that reset each calendar year — and avoid missing out on valuable statement credits and bonuses

It’s your last chance to use credit card benefits that reset each calendar year — and avoid missing out on valuable statement credits and bonuses

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Make sure you use up credit card statement credits and meet spending thresholds for bonuses by December 31.

Some credit card perks, such as statement credits or spending bonuses, reset each calendar year.
If you don’t use your benefits by December 31, they don’t carry over to next year.
Not using up calendar-year credit card perks is like leaving money (and rewards) on the table.
Read Insider’s guide to the best rewards credit cards.

Travel rewards credit cards come with all kinds of benefits. Some offer high sign-up bonuses, extra rewards in categories such as gas stations or grocery stores, and statement credits for things like travel expenses that can help offset their annual fees.

While some of these benefits are ongoing or are tied to your card’s anniversary date, others reset at the end of each calendar year.

Read more: Your Amex Platinum hotel credit expires at the end of the year — here’s what you need to do by December 31 to avoid wasting $200 in value

If you carry a credit card with calendar-year-based perks, now is the time to make sure you have either used them or maximized your annual spending to reap the benefits you deserve. 

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Credit card benefits that reset every calendar year

We’re focusing here on benefits that recalibrate each calendar year, though some cards offer perks that are based on your account anniversary instead, and those are also worth staying on top of.

One of the reasons it can be hard to keep track of your credit card benefits each year is the simple fact that there are several types of yearly awards that cards tend to include. Here are the main categories, though, and a few examples of cards that offer each.

Travel and other statement credits

Many premium travel rewards cards come with statement credits each year specifically for travel purchases. Due to the pandemic and the consequent restrictions on travel, some of these cards have broadened their purchase categories for this type of benefit in 2021. So if you carry a credit card that normally reimburses you for some travel expenses, be sure to check any updates on what might be available to you.

Airline fee credits 

Let’s take a few quick examples, though. The Platinum Card® from American Express offers up to $200 per calendar year in airline incidental fee credits**. Each January, cardholders can choose one eligible US airline with which to use those credits. They can be put toward extras like seat assignments, checked bags, inflight purchases, and more.

The Business Platinum Card® from American Express comes with similar credits up to $200 per year, while the Hilton Honors American Express Aspire Card ups the ante to a total of up to $250 per year. 

Read more: Amex Platinum cardholders get up to $200 in airline fee credits each year — here’s how to use them

If you haven’t maxed these out yet this year, there are lots of ways to use Amex airline fee credits, such as buying lounge passes to use in the coming year or pre-paying for seat assignments and bags on flights you’ve booked for 2022. Unfortunately, airfare and flight vouchers do not count.

Shopping and travel credits 

Platinum Card holders are also eligible for up to $100 of Saks shopping credits** each calendar year, which is divided into $50 for use between January and June, and $50 for July to December. So if you haven’t used your $50 for the second half of 2021 yet, it’s time to pick out something from Saks for someone on your holiday shopping list.

Read more: Don’t let the Amex Platinum’s new ‘lifestyle’ benefits distract you from its true value — here’s what the card is worth to the average person

The Platinum Card also comes with up to $200 per year in Uber credits** (including Uber Eats), which are split into $15 monthly. However, in December, cardholders receive an extra $20 in credit (for a total of $35), so be sure to order Uber Eats food delivery or pickup if you haven’t maximized this month’s benefit yet. The annual fee is $550 (See Rates).

The Amex Platinum added a number of new benefits this year, including some that need to be used before December 31. Cardholders receive up to a $200 statement credit when booking a hotel with The Hotel Collection (two-night minimum) or Amex Fine Hotels and Resorts (one-night minimum). Additionally, cardholders can get up to $179 per calendar year in credit toward CLEAR membership** to bypass long security lines at participating airports and stadiums.

Read more: I wasn’t interested in CLEAR until the Amex Platinum gave it to me for free. It’s fantastic.

The Business Platinum Card® from American Express offers up to $400 per year in Dell credits** — up to $200 from January to June, and another $200 from July to December. If you’ve not yet used the credit for the last half of the year, Dell sells plenty of accessories and electronics under $200, like Bluetooth headphones or gaming gear.

New Amex Business Platinum benefits for this year include up to $150 per calendar year in statement credits toward select Adobe purchases, including Adobe Creative Cloud and Acrobat Pro DC. There’s also a credit of up to $90 per quarter (up to $360 per year) for all Indeed hiring and recruiting products and services.

For its part, the Citi Prestige® Card (no longer open to new applications) normally comes with up to $250 in travel credits each calendar year, which can be applied to flights and hotel bookings, and also things like cruises, car rentals, and even taxis and tolls. If you have this card, but aren’t sure whether you’ve used it to pay for $250 worth of travel in 2021, check your progress. The good news is, cardholders can also apply their $250 at supermarkets and restaurants through December 31, 2021, thanks to pandemic-related updates.

Read more: Capital One Venture X vs Chase Sapphire Reserve: Which premium card is best for you?

As a side note, the Chase Sapphire Reserve® normally offers up to $300 in statement credits toward travel purchases each account year – based on the date your annual fee is charged rather than from January to December. However, if you opened your card before May 21, 2017, this credit resets at the end of each calendar year, so if you’re in that situation, be sure you’ve used the credit before the end of December.

Travel purchases can include anything from flights and hotel bookings to train tickets, rideshares, taxis, and even tolls and parking, among other eligible expenses. 

Credit card bonus category spending limits 

While many cards have bonus earning categories with no maximums, there are some that extend higher earning potential up to a yearly cap. For instance, the American Express® Gold Card earns 4x points per dollar on up to $25,000 of purchases at U.S. supermarkets each calendar year; after that, it only earns 1x. By contrast, it earns 4x points at restaurants with no ceiling, and 3x on flights booked directly with airlines or through Amex Travel. The annual fee is $250 (See Rates).

Read more: Amex Gold vs Chase Sapphire Preferred: Which popular travel rewards card is best for you?

Similarly, the Blue Cash Preferred® Card from American Express earns a whopping 6% back at U.S. supermarkets, but only on up to $6,000 spent per calendar year; after that, you’ll earn 1%. However, the card does accrue 6% on select U.S. streaming subscriptions, 3% back on transit, 3% back at U.S. gas stations, and 1% back on everything else (cash back is received in the form of Reward Dollars). The annual fee is $95 (waived the first year if you apply by 12/10/2020) (See rates).

The Business Platinum Card® from American Express earns 1.5x points on each eligible purchase of $5,000 or more, and on eligible purchases in the US in the following categories: Electronics goods retailers, software, and cloud service providers, construction materials and hardware supplies, and shipping providers. The 1.5x categories are caped at up to $2 million in combined purchases per calendar year; you’ll earn 1x after that. It also earns an uncapped 5x points on flights and prepaid hotels booked through Amex Travel.

Read more: Guide to the best small-business credit cards

The Ink Business Preferred® Credit Card from Chase has an excellent earning structure, accumulating 3x points on up to a combined total of $150,000 in purchases of travel, shipping, internet, cable and phone services, and advertising with social media sites and search engine in a calendar year. After that, it’s just 1x. So if you have any spending in these categories to do soon, try to make some of those purchases in 2021 so as not to eat into your 2022 spending cap.  

Although its bonus categories rotate quarterly rather than yearly, since Q4 also ends on December 31, it’s worth checking whether you have earned as many bonus points as possible this season with your Chase Freedom Flex℠. The card earns 5% back (5x points) on travel purchased through Chase Ultimate Rewards, 3% back (3x points) on dining at restaurants and on drugstore purchases, and 1% back (1x points) on all other purchases.

It also earns 5% back (5x points) on up to $1,500 in combined purchases in categories that rotate each quarter (then 1%), so stock up on what you need now in order to hit those earning ceilings. For Q4 2021, the Chase Freedom bonus categories are Walmart and PayPal.

Read more: Discover has revealed its rotating cash back categories for 2022, and they include grocery stores, fitness clubs, Amazon, and restaurants

The same applies to the Discover it® Cash Back and Discover it® Student Cash Back quarterly rotating categories. Both earn 5% cash back on up to $1,500 spent in combined bonus categories (then 1%) that change every three months, and 1% back on all other purchases Discover It Cashback rotation. 

Spending threshold bonuses or boosts

A lot of travel rewards cards also extend special bonuses, boosts toward elite status, and even free night rewards for meeting certain spending thresholds each calendar year.

Probably the most well-known is the Delta SkyMiles® Reserve American Express Card. Cardholders are eligible to earn 15,000 Medallion Qualification Miles (MQMs) toward elite status when they spend $30,000 or more on purchases with their card in a calendar year. This perk is capped at 60,000 MQMs and $120,000 in spending. Delta SkyMiles® Reserve American Express Card – Rates & Fees

That’s a lot of money to put on a single credit card, but if it’s in your wheelhouse and you can hit that high mark, you could walk away with enough MQMs to earn Delta Gold Medallion status outright without setting foot on an airplane.

Also remember that by spending $25,000 or more on purchases with the Delta Reserve in a calendar year, you can waive the Medallion Qualification Dollar spending requirements for all tiers up to Platinum (Diamond requires $250,000).

Read more: Guide to the best airline credit cards

The Citi® / AAdvantage® Executive World Elite™ Mastercard® offers members who spend $40,000 or more on purchases with their card in a calendar year 10,000 elite-qualifying miles (EQMs) toward AAdvantage elite status with American Airlines. The JetBlue Plus Card, meanwhile, awards automatic Mosaic elite status to cardholders who spend $50,000 or more on the card in a calendar year.

The Southwest Rapid Rewards® Premier Credit Card,Chase Southwest Rapid Rewards® Priority Credit Card, and Southwest Rapid Rewards® Performance Business Credit Card all earn Tier Qualification Points (TQPs) toward elite status based on spending. You can earn 1,500 TQPs for each $10,000 spent on purchases, and there’s no longer a limit to the number of TQPs you can earn each year.

Another thing to note about the Southwest family of co-branded credit cards – the Rapid Rewards points you earn with them count toward Companion Pass qualification (basically two-for-one paid and award travel). To score one, you’ve got to earn 125,000 qualifying points in a calendar year. So if you’re near that level, you might want to put a little extra spending on your cards to get you over the hump — just be sure your December card closing date hasn’t passed yet, because points that post in January won’t count toward 2021 Companion Pass status.

Read more: 7 luxurious ways to redeem Amex Hilton free weekend night certificates

Hotel credit cards offer spending bonuses of their own. If you have The World Of Hyatt Credit Card, you can expect a free night reward every year you renew and pay the annual fee that is redeemable at Category 1 – 4 hotels. You can earn an additional free night reward after spending $15,000 on purchases in an account year, too, though this is switching to the calendar year in 2021 and 2022 (depending on when you opened your card) — so start thinking about your future spending now.

Although folks with the Hilton Honors American Express Aspire Card get a weekend night reward that’s redeemable at most participating hotels worldwide each account anniversary after paying their annual fee Product Card 6012cd7f88948700119fd911, they can earn an additional one by spending $60,000 or more on purchases in a calendar year.

Likewise, those with either the Hilton Honors American Express Surpass® Card or the The Hilton Honors American Express Business Card can earn a weekend night reward at $15,000 or more in calendar-year spending, and boost from Hilton Honors Gold status up to top-tier Diamond by hitting $40,000.

Read more: Hilton will not offer their traditional free breakfast perk for elite members until 2023 at the earliest — here’s what you’ll get instead as compensation

For Marriott loyalists, spending $75,000 or more in a calendar year on the Marriott Bonvoy Brilliant™ American Express® Card will bump you up from Gold elite status up to Platinum and a host of better benefits, including an improved shot at room upgrades during stays.  

Credit card referral bonuses

Some credit card issuers reward you with bonuses for referring friends to apply either for your specific card, or another one from the same bank. For instance, if you have the Chase Sapphire Preferred® Card, you might be eligible to earn 20,000 bonus Chase Ultimate Rewards points for every friend you refer who successfully applies, up to a total of 10,000 points per calendar year. Have the Ink Business Preferred® Credit Card? You might be able to rake in 20,000 bonus points per referral up to 100,000 points per year.

American Express also often tempts cardmembers with referral offers. This will often depend both on the cards you carry and the ones American Express is currently promoting. For instance, if you have the Marriott Bonvoy Business™ American Express® Card, you can refer others for any available Amex personal or business card offer, and expect a rate of around 20,000 bonus Marriott Bonvoy points per successful referral up to 55,000 bonus points total per year.

Read more: Guide to the best American Express cards

If you have The Platinum Card® from American Express, you might receive up to 15,000 Amex Membership Rewards points per referral, up to 55,000 per calendar year. So it’s worthwhile checking what offers you’re eligible for.

Read the original article on Business Insider

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