WalletHub, Financial Company
No, annual fees do not count towards the minimum spending requirement for a card’s welcome bonus. Other fees, such as those for balance transfers and cash advances, don’t count toward a card’s bonus spending requirement, either.
Many credit cards have sign-up bonuses for new cardholders who spend a certain amount on purchases during a specified timeframe. For example, you might get $500 for spending $3,000 in your first 3 months. But that minimum spend is for purchases, and paying your card’s annual fee doesn’t count. Credit cards’ terms and conditions are very specific about this. They leave little room for interpretation.
Transactions that don’t count towards minimum spending requirements:
- Fee and interest payments
- Balance transfers
- Cash advances
- Checks that access your account
- Purchases or reloading of prepaid cards
- Purchases of cash equivalents (traveler’s checks, foreign currency, lottery tickets, money orders)
- Returned purchases
It is also worth noting that in certain cases, paying a credit card’s annual fee doesn’t count as purchase, either. For instance, sometimes, credit card companies will close your account if you don’t make a purchase or bill payment for a long period of time. So, even if a card has an annual fee, some issuers will not considered this an eligible purchase and might close your account due to inactivity.
Citi Premier® Card
People also ask
Did we answer your question?