Credit Card Referral Bonuses, Explained
How referrals work
Log in to your card account and look for a refer-a-friend option, which generates a personal link. When someone applies through it and is approved, you get a referral bonus, usually capped at a number of referrals per year. The person you refer still earns the standard welcome offer, so it is win-win, though always compare the link offer to the best public offer.
The tax wrinkle
Unlike rewards you earn by spending, which are treated as a rebate and are not taxable, referral bonuses are often reported as income on a 1099 because you received them without a purchase. Keep that in mind if you refer a lot. See are rewards taxable.
Couples and friends
Referrals pair naturally with two-player mode: refer your partner to a card they want and the household earns the referral bonus plus their welcome bonus. Just check that the public offer is not higher than the referral offer before applying.
Frequently asked questions
Related reading
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