I’ve been a huge fan of credit card reward programs for the past 25 years (and have earned thousands of dollars using my cash-back cards) and am often asked how you can best maximize your rewards.
One proven strategy is to take advantage of quarterly credit card bonuses that offer bonus rewards on select purchases or purchase categories that change each quarter. I often brag about earning 2% on all my purchases using my favorite 2% cash-back card. While 2% is hard to beat, it definitely doesn’t hold a candle when compared to 5%!
While the quarterly bonus strategy is certainly proven, the rules can sometimes be confusing. Some reward cardholders even feel that the bonuses are a bit gimmicky as they require you to opt-in every quarter, have caps, etc.
This article aims to clear up any confusion surrounding quarterly credit card bonus categories and to help cardholders make the most of these rewards.
What are credit card quarterly bonus offers?
Quarterly card bonuses are similar to credit card sign-up bonuses but yet distinct. They typically feature:
- Quarterly bonuses that rotate (a new bonus opportunity begins every three months or four times a year) and are above and beyond your normal card rebates. In other words, your participation is optional and any earnings are in addition to your ongoing everyday rewards.
- Bonuses are often 5% and usually limited to $1,500 in purchases per quarter.
- You have to opt-in to activate bonus categories each quarter.
With these cards, you will earn bonuses with specific merchants and/or merchant categories that the card issuer normally chooses. According to card expert Jason Steele, such purchases are eligible for bonus points or enhanced cash back.
Examples of bonus categories include grocery stores, restaurants and gas stations. Examples of merchants include well-known brands such as Walmart, McDonald’s and Amazon.com.
Understanding how the process works only takes a few minutes on the front end, but this is time well spent as 5% rebates can add up over time. Beverly Harzog, credit expert and podcast host of “Your Personal Economy,” adds that “it’s important to read the rewards program carefully so you understand how bonus categories work.”
Which credit cards offer 5% quarterly credit card bonuses?
Three major card issuers currently offer quarterly bonus offers. The specific cards that are most often associated with bonuses are as follows:
- Chase Freedom and card_name cardholders enjoy 5% cash back on up to $1,500 in spending per quarter once activating, and 1% back on other purchases. (Chase Freedom® is no longer accepting new applications, but existing cardholders are still eligible to earn in the bonus categories. Information about Chase Freedom® and Chase Freedom FlexSM has been collected by CardRatings and has not been provided or approved by the issuer of the card.)
- card_name and the card_name offer 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Citi Dividend card members get a similar rotating 5% bonus, but the total annual cash back is limited to $300. card_name cardholders, on the other hand, earn 5% cash back on purchases in their top eligible spend category each billing cycle (not quarterly), up to the first $500 spent, and 1% cash back thereafter. (Citi is a CardRatings advertiser. The Citi Dividend card is no longer offered to new applicants but the bonus structure remains in place for existing cardholders.)
Other smaller card issuers, such as credit unions, also may offer quarterly bonuses. However, our focus here is on the largest banks that issue the vast majority of cards.
➤ SEE MORE:Discover quarterly rewards categories
How do I enroll in quarterly credit card bonus categories?
As noted above, enrolling in quarterly bonuses is required. The one notable exception is the card_name, which automatically enrolls cardholders in their top spending category each month.
The good news is that enrolling in new bonus categories is a very quick process– think seconds, not minutes, and involves three options:
- Steele explains that “you can log into your online account and quickly enroll.”
- Some card issuers, like Chase and Discover, send out emails that allow you to register with just a single click.
- You can also enroll the old-fashioned way by calling your card issuer.
On a related note, if you’re like me, you may be wondering why issuers make your enroll every quarter. Steele opines that “enrolling ensures that only those who are interested in participating in the bonus categories receive the additional rewards.” This helps make the bonuses more sustainable and ensures that the cardholder will be more engaged in the process (i.e. aware of what the current categories are).
BONUS TIP!
Be sure to check with your card to see when the deadline is to enroll each quarter as deadlines vary. The good news is that you don’t always have to enroll before the new quarter begins. In fact, in some cases you can enroll late in the quarter.
Case in point, I enrolled on 9/24 for my bonus from Discover that ended on 9/30 and then got this confirmation message:
“You activated to earn 5% Cashback Bonus at Walmart and Grocery Stores, now to September 30, 2024, on up to $1,500 in purchases. For the first time ever, Walmart purchases – both in store and online – will earn 5% cash back.”
Chase has the following similar message on their website:
“Activate now and earn 5% cash back in these categories from October 1, 2024 – December 31, 2024. Activate by December 14, 2024.”
Are quarterly credit card bonus categories worth it?
The short answer to this question is.. well it depends, but usually YES! Here are two scenarios to consider:
- If you have a card that you’re actively using and that has quarterly bonuses, then I believe that it’s definitely a good idea to at least take a minute to see what the current bonus categories are. If you never make any purchases in the categories, then obviously it’s probably not worth it. However, if you make even occasional purchases in at least one category, then I would say it’s 100% worth it.
- If you are considering applying for a card that has quarterly bonuses, then you need to comparison shop to find the best card based on your lifestyle and spending habits. You can review previous bonus categories to find a card that has previously offered bonus offers that appeal the most to you.
Steele brings up another pointing to consider.
“It’s true that you do have to register to be eligible for the bonus, but this takes just a few seconds,” he says. “The hassle is in remembering to do so, and remembering to use [your card for bonus category purchases].” Those who can’t remember to do this may be better off using a flat-rate cash back card that offers at least 2% cash back on all purchases, he adds.
Harzog shares a similar sentiment.
“Take a look at the categories that have been offered in the past to see if any would help you save money,” she says. “You do have to stay aware of what the current categories are to really benefit, though.” For those who are savvy, it’s definitely “worth the effort to earn 5% in a spending category — even with a cap.”
I personally have a similar perspective. Time is money and investing a few minutes every quarter to earn up to an additional $300 cash back every year (up to $75 each quarter you enroll) with the card_name for example is time well spent as far as I’m concerned!
➤ LINK LABEL:Chase Freedom® quarterly rewards categories
Final thoughts and suggestions
Credit card quarterly bonus categories have been around for several years and are seemingly here to stay. While they aren’t a good fit for everyone, they can allow smart cardholders to stretch their reward dollars. The exciting thing to me is having the ability to earn over twice my normal 2% rebate on purchases that I would be making anyway!
The following two tips can help you supercharge your earnings:
- Steele cautions that some cardholders make unnecessary and unplanned purchases in order to get bonuses. He wisely adds that “earning 5% back on a purchase in any bonus category is a waste of 95% of your money when it’s an unnecessary purchase.”
- Steele also suggests that a quarterly rotating card is often best paired with a card that offers a high rate of cash back on all purchases. If you exclusively use a card with quarterly categories for all your purchases, then you will probably earn fewer rewards than you would have with a card that offers more than 1% back on all purchases, such as the card_name.
Finally, Harzog encourages cardholders to “be aware of what the current categories are so you can boost your earnings. For instance, if gas is a category during the winter quarter and you’re planning a road trip during that time, use the card that gives you a 5% bonus when you fill the tank,” she says. You can best maximize your rewards by using your card(s) strategically. She adds that “you’ll likely be surprised by how easy and profitable this process is.”
