As the new year begins, many people are making New Year's resolutions and starting a new chapter. But did you know that your wallet might also be getting a fresh start? Many premium credit cards offer generous benefits that reset annually, and ignoring them is like throwing money away. This guide will walk you through the key benefits you should be checking right now.
The Annual Reset: Unlocking Hundreds in Value
Premium travel and rewards credit cards often come with a significant annual fee. To justify this cost, issuers pack them with valuable credits and benefits. A large number of these perks operate on a calendar-year basis, meaning they expired on December 31st and a brand new set of benefits became available on January 1st. Forgetting to use them is a common mistake that costs consumers hundreds of dollars each year.
The key is to know what perks your cards offer and when they reset. While some benefits renew on your card anniversary date, many of the most valuable ones align with the calendar year. Let’s explore the most common categories and specific card examples.
Annual Travel Credits
This is one of the most common and valuable perks that resets in January. These credits are designed to offset your travel costs, effectively reducing your card’s annual fee.
Airline Fee Credits: These credits typically cover incidental airline charges like checked bags, seat selection fees, in-flight food and drinks, or lounge day passes. You usually have to select one qualifying airline for the year.
Example: The Platinum Card from American Express offers up to a $200 airline fee credit each calendar year. If you haven’t already, you need to log into your account and select your airline of choice for the year. A family of four checking one bag each way on a single trip could easily use this entire credit.
General Travel Credits: Some cards offer a more flexible travel credit that is automatically applied to a wide range of travel purchases, including flights, hotels, rental cars, and even public transit.
Example: The Chase Sapphire Reserve card provides a \(300 annual travel credit. This is one of the easiest credits to use, as it automatically reimburses you for the first \)300 in travel purchases charged to your card each anniversary year. It’s a powerful and straightforward way to reduce the card’s effective annual fee.
Hotel Credits: Certain high-end cards offer statement credits for stays at specific hotel properties.
Example: The Platinum Card from American Express also offers up to a $200 hotel credit on prepaid bookings through AmexTravel.com at Fine Hotels + Resorts or The Hotel Collection properties (The Hotel Collection requires a minimum two-night stay). This credit resets each calendar year.
Statement Credits for Everyday Spending
It’s not all about travel. Many cards now offer credits for everyday purchases, and several of these reset annually or even monthly.
Dining Credits: Some cards offer monthly credits that can be used at specific restaurants, food delivery services, or platforms.
Example: The American Express Gold Card offers up to $10 in statement credits each month for purchases at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, and select Shake Shack locations. While this resets monthly, the new year is a great time to set a reminder to use it.
Digital Entertainment & Streaming Credits: These credits cover the cost of popular streaming services.
Example: The Platinum Card from American Express provides up to \(20 per month in statement credits for purchases on services like Peacock, Audible, SiriusXM, and The New York Times. This amounts to \)240 in value per calendar year.
Rideshare Credits: Monthly credits for services like Uber are common on premium cards.
Example: The American Express Gold Card gives cardholders up to \(10 in Uber Cash per month for Uber rides or Uber Eats orders in the U.S. The Platinum Card offers up to \)15 in Uber Cash monthly, with a bonus in December.
Hotel Free Night Certificates
This is a huge perk that can easily be worth several hundred dollars. Many co-branded hotel credit cards provide a free night award each year after your account anniversary.
How They Work: Typically, you receive an electronic certificate that can be redeemed for a one-night stay at eligible properties, usually up to a certain point value.
Examples:
The Marriott Bonvoy Brilliant American Express Card offers a Free Night Award each year after your card renewal month, valid for a stay at a property with a redemption level up to 85,000 Marriott Bonvoy points.
The Hilton Honors American Express Aspire Card provides one Free Night Reward every year upon renewal, valid at almost any Hilton property worldwide.
The World of Hyatt Credit Card from Chase gives cardholders one free night at any Category 1-4 Hyatt hotel or resort every year after their cardmember anniversary.
Airline Companion Passes & Fares
For those who travel with a partner or friend, a companion pass can be the single most valuable credit card benefit, saving you over a thousand dollars a year.
How They Work: These benefits allow you to book a cash ticket for yourself and have a companion fly with you for just the cost of taxes and fees.
Examples:
Alaska Airlines Visa Signature credit card: Cardholders get a Companion Fare every account anniversary. You can buy one round-trip coach ticket on Alaska Airlines and get a second one for a companion on the same itinerary for just \(99 plus taxes and fees (which start from \)22).
Delta SkyMiles Platinum and Reserve American Express Cards: These cards offer a Companion Certificate each year upon renewal of your card. The certificate is valid for one round-trip Main Cabin (Platinum) or even First Class (Reserve) companion ticket within the 48 contiguous United States.
How to Track Your Annual Benefits
Read Your Guide to Benefits: When you get a new card, it comes with a detailed guide. Take 15 minutes to read it and highlight the annual perks.
Log Into Your Online Account: Most card issuers have a benefits dashboard or portal where you can track your credit usage and see enrollment requirements.
Set Calendar Reminders: For benefits that reset on January 1st, set a reminder for the first week of the year to check your perks and make a plan to use them. For anniversary-based perks, set a reminder for that month.
By taking a few minutes to review your credit card benefits at the start of the year, you can ensure you’re maximizing the value you get in return for your annual fee.
Frequently Asked Questions
Do all benefits reset on January 1st? No, this is a critical distinction. Many benefits, like the Amex airline fee credit, reset on a calendar-year basis (Jan 1st - Dec 31st). Others, like many free night certificates and companion passes, reset on your cardmember anniversary year (the month you opened the card). Always check your card’s terms to be sure.
What happens if I don’t use a credit before it expires? You lose it. Unused statement credits or travel benefits from the previous year do not roll over. This is why it’s so important to track them and use them before the deadline.
How do I enroll in these benefits? Some benefits, like flexible travel credits, are applied automatically. However, many others require one-time enrollment. For example, you often have to select your airline of choice for an airline fee credit or activate offers for shopping discounts. You can do this through your online account portal.