unlike credit cards, debit cards don't have a spending requirement, and many people think this is a misconception, but the truth is that most debit cards, like credit cards, require you to spend the previous month to get the benefits. however, there are some no-performance debit cards that offer basic benefits without a performance requirement. In this article, we'll explain what a no-performance card is and how you can get them.
table of Contents
- what is prior month performance?
- the difference in benefits between prior month performance tiers
- benefits of no-performance debit cards
- how to get both earned and no-earned benefits
- frequently Asked Questions
what is prior month earnings?
your prior month's earnings is the total amount of money you spent on your card from the first to the last day of the previous month. your card company uses this amount to determine what rewards you'll get the following month, so for example, the rewards you get in March will depend on how much you spent on your card during February.
it's easy to assume that debit cards are less performance driven than credit cards because you're spending money directly from your account, but the reality is that, just like credit cards, you often need to spend a certain amount to get a discount.
differences in rewards for different performance tiers
some cards offer different benefits based on the previous month's performance: the more you spend, the higher the discount limit.
For example, the KB Nori2 Check Card has different monthly discount limits depending on the previous month's performance. if you spend more than KRW 200,000 in the previous month, you can get a monthly discount of KRW 20,000, KRW 40,000, KRW 30,000, KRW 60,000, KRW 40,000, KRW 80,000, and KRW 50,000.
this tiered benefit structure can help you choose a card based on your average monthly spending. if you spend around $500,000 per month, you'll want to choose a card that will give you a steady stream of benefits in the $400,000 range.
the benefits of no-accrual debit cards
no-performance debit cards are cards that offer basic benefits even if you spend 0 won the previous month. Since there are no performance requirements, you can get discounts when you need them just by having a card.
for example, the KB Nori 2 debit card gives you 10% off at Starbucks and Coffee Bean regardless of your previous month's spending. there's a maximum limit of 3,000 won per month, but it's a great way to save on coffee without having to worry about performance.
the best part about no-qualifying offers is the flexibility. even if you already have a primary card, it's great to have a secondary card for specific merchants, so if you don't use it at all one month, you don't lose the next month's rewards.
how to combine earned and no-earned benefits
the most efficient way to do this is to choose a card that offers both a no-performance base reward and a performance tiered reward, so you only get the base reward in low-spending months and the performance reward in high-spending months.
The KB Kookmin Nori2 Check Card does this: you can get a discount on coffee even if you don't have a track record, and if you accumulate the previous month's track record, you can get additional discounts on convenience stores, delivery apps, telecommunications, OTT, and more.
this way, I don't have to worry about irregular spending patterns - I can take full advantage of the rewards in months when I spend a lot on business or travel, and still get the basic benefits in months when I spend less.
frequently asked questions
Q1. Are there any items that don't count toward my previous month's earnings?
A. Yes, cash advances, card advances, annual fees, and utility bills are generally excluded from the previous month's performance. each card company has slightly different criteria, so check your terms and conditions.
Q2. Do no-accrual debit cards have higher annual fees?
A. Not necessarily - there are many cards that offer no-performance benefits and still have reasonable annual fees. It's important to carefully compare the annual fee to the benefits.
Q3. Can I combine the performance of multiple cards?
A. No. Performance is calculated separately for each card, even within the same card issuer. credit and debit cards are also not combined.
Q4. How do I check my previous month's performance?
A. You can check your cumulative spending for the current month in real-time on your card's mobile app or website. you'll often see an estimate of the next month's benefits as well.
Q5. If I don't meet my threshold, will I lose the next month's benefits completely?
A. No, you won't receive the tiered benefits, but if the card has a no-qualification base benefit, you'll keep that portion.
wrapping up
remember that debit cards have rewards that depend on your previous month's performance, and that there are no-qualification debit cards that offer basic rewards without requiring you to earn them. choosing a card based on your average monthly spend and your favorite merchants can help you get the most bang for your buck.
what debit cards do you use? If you have any tips for managing your previous month's earnings, share them in the comments.