Do Charges Offset by Credits Count Toward a Sign-Up Bonus?
Update: Some offers mentioned below are no longer available. View the current offers here – Citi Prestige Card
TPG reader Colin sent me a message on Facebook to ask about earning a sign-up bonus:
"I recently got the Citi Prestige card, and want to redeem the $250 statement credit on airfare. Will the full purchase amount count toward earning the sign-up bonus, or do I have to meet the minimum spending requirement on top of any credit I receive?"
Rewards credit cards offer statement credits for a wide variety of charges, ranging from baggage fees and Global Entry applications to Gogo Wi-Fi passes and new cell phones. The Citi Prestige Card offers one of the most valuable and versatile of these benefits: a $250 Air Travel Credit that you can redeem for just about any airline purchase, including airfare.
Colin is planning to redeem his statement credit soon, but he wants to make sure it won't count against him as he tries to earn the sign-up bonus. It's always a good idea to verify the terms and conditions of a bonus offer, since you don't want to make the mistake of not spending enough and miss out entirely. While there are some charges that don't count toward the minimum spending requirement, Colin has nothing to worry about in this case.
Citi Prestige currently offers a sign-up bonus of 50,000 ThankYou points after you make $3,000 in purchases within three months of opening your account. The landing page clearly specifies that balance transfers don't qualify as purchases, and neither do cash advances, annual fees or items that are later refunded. However, statement credits aren't mentioned. Airfare is clearly a legitimate purchase, and getting the charges offset by the Air Travel Credit has no bearing on that. Ultimately, what matters is the total amount you spend, not the net amount you owe the card issuer.
The answer should be the same for all rewards cards — I'm not aware of any that factor statement credits on qualifying purchases into the minimum spending requirement. That makes it easier to earn sign-up bonuses, since your total expense is effectively reduced by any credits you receive.
For further info on statement credits, Citi Prestige benefits and sign-up bonus offers, check out these posts:
- Maximizing Benefits with the Citi Prestige Card in 2016
- Top Cards That Offer Credit for Airline Incidentals
- Do Authorized User Purchases Count toward Credit Card Bonuses?
If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.
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Annual Fee
Recommended Credit
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The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
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Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
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- This is a pay-in-full card, so your balance is due in full every month
Rewards Rate
| 2X miles | 2 miles per dollar on every purchase |
| 5X miles | 5 miles per dollar on flights and vacation rentals booked through Capital One Business Travel |
| 10X miles | 10 miles per dollar on hotels and rental cars booked through Capital One Business Travel |
Intro Offer
Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
$395Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.740-850Excellent
Why We Chose It
The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
- The Capital One Venture X business card has a very lucrative welcome offer.
- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month