How to Earn Yearly Point Bonuses on Your Credit Cards
In a bid to keep consumers who sign up for credit cards for the one-time bonus and then cancel them shortly after, issuers are beginning to offer annual points bonuses, reports CNBC.
The Southwest Rapid Rewards Priority card, for example, offers 7,500 each for each yearly card anniversary (it also gives you 25,000 points if you spend $15,000 in the first year), and the Barclays Arrival Premier World Elite card, a travel card, gives users 15,000 bonus miles each year if they spend $15,000 on the card. The Wyndham Rewards Visa Signature card awards users 6,000 bonus points each year.
It goes beyond these lump-sum bonuses. Per CNBC, Bank of America’s Premium Rewards gives rewards bonuses to card holders with high bank account balances, up to 3.5 points per dollar spent on travel and dining.
Banks and card issuers have realized that many people don’t switch cards often, so they want to earn that loyalty up front, while preventing churners from signing up for one-time rewards and then moving on.
As with all financial products, read the terms before you sign up for anything, and note the terms and conditions. You’re likely not going to change your habits drastically just because you have a new card. For example, do you already spend the minimum balance requirement? It’s likely not worth signing up for a rewards card with an annual fee if you’re not going to maximize all of the rewards options.