Don’t forget: The 5 types of credit card perks that reset each calendar year
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Editor’s note: For more on limited-time perks that are set to expire at the end of 2020, read our full guide to coronavirus-related credit card benefits.
It’s been a hectic year, to say the least, but it’s almost time to enter a new chapter and calendar year. Before that happens though, it is important to remember that a number of valuable, permanent credit card perks reset when the clock strikes midnight at the end of 2020.
These benefits, especially with premium credit cards, are an important part of offsetting the hefty annual fees we pay, so it’s crucial to utilize them whenever possible.
Want more credit card news and advice? Sign up for the TPG newsletter!
Here are five types of credit card perks that reset each calendar year.
Annual travel-related credits
Premium cards of all different varieties now offer annual travel credits, ranging from airline and hotel discounts on cobranded cards to more general travel credits on transferable points cards.
The information for the Hilton Aspire Amex card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
You can check out this guide for a full walk-through of the top cards with annual travel credits, but it’s important to keep in mind that each card offers a slightly different form of credit.
A note about American Express cards
With the Amex cards mentioned above, you receive an annual “airline incidental credit.” This typically can’t be used directly toward the cost of airfare, only for incidental charges like bag fees, seat assignment, lounge access, etc.
There have been reports of workarounds (airfare less than a certain amount sometimes triggers the benefit) but remember, this is not how the credit is intended to be used, and your mileage may vary.
Flexibility with Chase Sapphire Reserve and Citi Prestige® Card
The Chase Sapphire Reserve offers a much less restrictive $300 annual travel credit that will automatically be applied to a wide range of travel purchases including airfare, hotels, Airbnb, public transit, parking fees and many more uses.
Because of the pandemic, Chase has also made this benefit even easier to use — you can use the travel credit on groceries and gas purchases through the end of 2021.
Meanwhile, the Citi Prestige also temporarily expanded which purchases qualify for the up-to-$250 travel credit awarded to cardholders each year. If you haven’t already used your Citi Prestige travel credit this year, you can still use it at grocery stores and restaurants through the end of 2020.
The information for the Citi Prestige Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Cards with calendar year-based travel credits offer a great chance to double dip. If you apply for the card at the end of the calendar year, you’ll be able to earn the credit twice before you have to pay your second annual fee.
Capped bonus categories
A common trend we’ve seen with premium credit cards is the introduction of high-value bonus spending categories — with a cap.
For instance, in the case of the American Express® Gold Card, your 4x bonus points at U.S. supermarkets are capped after spending $25,000 per calendar year (then 1x).
With The Blue Business® Plus Credit Card from American Express, your 2x earnings on all purchases are limited to the first $50,000 per calendar year (earn 1x thereafter).
Other great rewarding cards like the Chase Ink Business Preferred Credit Card have similar caps on their bonus categories. Thankfully these all reset at the beginning of the year, so it’s time to clean out your sock drawer and reevaluate which cards deserve a spot in your physical wallet each day.
Credit card issuers make the bulk of their profit from two avenues: interest they collect on late payments, and swipe or interchange fees each time you use your card. While there’s nothing they can do to incentivize savvy TPG readers to carry a balance on their cards, there are plenty of different bonuses being offered for spending a certain amount each year.
The bonuses vary depending on how much you’re willing to spend. For instance, the Hilton Honors American Express Surpass® Card will give you a free weekend night reward for spending $15,000 on purchases on your card in a calendar year — and you can upgrade to Hilton Diamond status by spending $40,000 a year. However, you can get both a free night and Diamond status automatically by holding the premium Hilton Honors American Express Aspire Card.
When it comes to airline cobranded cards, there are generally two types of big spending bonuses you can find. United and Delta both issue an elite status revenue waiver for customers who spend a certain amount on their credit cards each year.
When you start sharing photos of all your travel points and miles redemptions, you’re bound to have friends start asking you how they can get a slice of the action as well.
It takes a decent amount of coaching to help someone select the right credit card, earn a welcome bonus and redeem the miles at a decent value, and you deserve to be compensated for the time you spend helping them. One great way to do this is by sharing referral links for your credit cards, which let you earn 10,000 or more points per approved referral.
Most card issuers cap the number of referral bonuses you can earn but these reset at the end of each calendar year.
A number of cobranded airline credit cards offer some form of a companion certificate either as a standard benefit or after reaching a certain annual spending threshold. Each one has its own set of rules governing what routes (domestic vs. international) and fare classes (award vs. cash tickets, different cabins, etc.) are eligible, and what if any additional cost you’ll incur.
Keep in mind that because of the pandemic, many companion certificate passes have been extended to give you more flexibility if you’re not traveling now.
Rather than drowning you in all those details, you can check out this companion certificate guide if you have a cobranded Alaska Airlines, Delta, British Airways or American Airlines credit card to figure out how to maximize your companion certificate. At the end of the day, this hobby is all about discounted or free travel, and a free ticket for your companion is about as good as it gets.
As the year comes to a close, it’s a good idea to do two things: Ensure you’re taken advantage of your card benefits in 2020 and map out a rough plan of how you want to use those perks for 2021 (or if it’s worth keeping your card with said perk).
Many of these perks are the very reason we keep these expensive cards open year after year, and if you’ve already paid your annual fee, the fastest way to get that value back is by maxing out your credits and rebates, and figuring out how to make the cards in your wallet work for you.
Additional reporting by Ethan Steinberg.
Featured photo by The Points Guy.
Welcome to The Points Guy!
WELCOME OFFER: 100,000 Points Terms Apply.
TPG'S BONUS VALUATION*: $2,000
CARD HIGHLIGHTS: Delta Sky Club and Centurion lounge access, up to $200 annual airline fee credit and up to $200 in Uber Cash annually (only for use in the U.S.) (Enrollment required for select benefits)
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 100,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
- Plus, earn 10x points on eligible purchases on the Card at restaurants worldwide and when you Shop Small in the U.S., on up to $25,000 in combined purchases, during your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
- Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
- $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.
- New! American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
- $200 Airline Fee Credit: Get up to $200 in statement credits per calendar year in baggage fees and more at one qualifying airline.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status available to Basic Card Member only.
- $300 Equinox Credit: Get up to $25 back each month on select Equinox memberships. Enrollment required.
- $179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.
- $695 Annual Fee.
- Terms Apply.
- See Rates & Fees