One great strategy for earning points and miles with minimal effort is to refer friends and family for credit cards.
This overlooked feature can yield thousands of dollars in cash back or miles each year, and it doesn’t require additional spending on your part.
Here’s how you can use this program to refer friends, family members and small businesses for Capital One credit cards — and how you can earn lucrative bonuses along the way.
What is Capital One Refer a Friend?
Capital One Refer a Friend lets you refer people for credit cards via a unique link.
Using this link, your friend, relative or co-worker can apply for a credit card and earn a welcome bonus the same way they normally would. And, by using your personalized link, you can earn a bonus after the person you referred applies for and is approved for a credit card.
They must start and finish their application using your link for you to receive the bonus.
The referral bonus will be issued in the same type of rewards your credit card normally earns. So, you’ll earn a cash bonus when referring a cash-back credit card and will earn miles when referring a card that earns Capital One miles.
You could also opt to receive your bonus as a statement credit.
Related: Should my partner get their own card or be added as an authorized user?
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What is Capital One Refer a Business?
If you have a small-business credit card from Capital One, you can use the Refer a Business program to earn referral bonuses on these credit cards. You’ll earn cash bonuses on cash-back cards and earn bonuses of miles on cards that earn those.
Earning cash or miles bonuses should complement your business’s existing credit card strategy to help you earn more rewards.
Related: Can I refer someone to a business credit card from a personal credit card?
Cards eligible for referrals
There’s a simple answer with good news here: All Capital One personal and business credit cards are eligible for referrals, as long as your account is in good standing.
The Capital One Refer a Friend and Refer a Business programs generate targeted offers. That means not everyone will see the same bonuses when generating a referral link from their credit cards.
Related: The best time to apply for these popular Capital One credit cards based on offer history
How to generate referrals
To generate a referral, head to the Capital One Refer a Friend page. If you’re referring someone for a small-business credit card, you’ll need to start from the Refer a Business page.
After signing in to your Capital One account, you can copy your referral link.
Once you click the blue “Copy” button, you’ll see a message confirming that you’ve copied the link correctly.
If you give this link to a friend or relative, they will see this screen when they use it to apply.
It’s also possible to generate a referral link using the Capital One mobile app. Just head to your credit card’s account details and scroll down.
Next to the options for replacing your card and viewing recent statements, you’ll see “Refer a friend.”
At the bottom of the screen, you’ll see the details of your referral bonus and a “Refer a friend” button to copy your referral link.
Related: Cash back vs. travel rewards: How to choose a credit card
Frequently asked questions
Here are some common questions you may have about Capital One credit card referrals — and their answers.
Do you have to know the person you refer to?
You don’t necessarily need to know the person you’re referring to. Posting your referral link online or on your social media accounts could generate unexpected referrals.
Some banks allow you to generate a generalized referral. So, you could refer a friend to a page with multiple credit card options, so they can choose the one that best suits their situation.
Capital One allows this. For example, if you have the Capital One Venture Rewards Credit Card, you can receive bonuses for the Capital One Venture X Rewards Credit Card.
Are referral bonuses taxable?
It’s worth noting that banks may issue a 1099 tax form on any referral bonuses you receive. While rewards you earn from credit card spending (as well as welcome bonuses) are generally considered a discount or rebate on goods you’ve purchased, referrals are different.
You may receive tax forms for any cash bonuses, miles or statement credits earned from referring friends and family for credit cards. If you have questions about how this could affect you, consult your tax preparer or financial adviser.
Are referral bonuses instant?
You won’t receive your referral bonus until someone applies for and is approved for a Capital One credit card. Capital One says it can take up to eight weeks to receive these bonuses, though it’s typically faster.
If more time has passed and you’re sure the person used your link to apply for a card, call the number on the back of your card to ask about a missing referral bonus.
Related: If I cash out my points and miles, do I have to claim it on my taxes?
When you might not receive a referral bonus
Sometimes, you may not receive a bonus from Capital One Refer a Friend or Refer a Business. The following rules apply:
- Your account must be open and in good standing to receive referral bonuses.
- The person must use your link to start the application, complete it and be approved for an account before you can receive the bonus. If that person doesn’t complete the application through the link you sent, you won’t receive a bonus.
- The person using your link must be approved for the credit card, or you won’t receive a referral bonus.
- If you or the person you refer is an employee of Capital One (call centers, bank branches or Capital One cafes), you will not receive a referral bonus.
- You also won’t receive a referral bonus if you’ve passed the yearly maximum for referrals on your account.
If any of these apply to you or the person using your referral link, it’s possible you won’t receive a bonus.
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Bottom line
Referral bonuses should factor into any long-term credit card strategy, along with retention offers, using the right credit card for each purchase and using programs like Capital One Offers.
The best part about referral bonuses is that they don’t require any spending on your end. You simply generate a link, have someone apply for a credit card through it and collect a bonus after that person is approved for a new account.
The Capital One Refer a Friend program (and its Refer a Business counterpart) allows you to refer credit cards you have in your wallet and can provide bonus miles or cash, depending on which card you have.
Related: How to get maximum value when redeeming Capital One miles
