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@SanjeevR wrote:
@bs6054 wrote:
@SanjeevR wrote:Thanks, but now I'm confused.
From their website: (https://www.usbank.com/package/gold.html)
"The Gold Package gives you these valuable extras:
- Two free non-U.S. Bank ATM transactions per statement cycle.
- Preferred rates and rewards.
- Preferred rates on new loans and home equity lines of credit.
- 25% monthly bonus on all rewards earned for net purchases (purchases minus credits and returns) with a U.S. Bank Cash+™ Visa Signature® or FlexPerks® Visa® Credit Card."
So you don't need the Gold package to get the 25% bonus?
Right, two separate things. One is the redemption bonus, any time you redeem $100 or more (but you should only redeem $100 at a time!) you get $25, as a debit card or possibly deposited to your bank account.
With the gold account, you get a monthly 25% bonus on the base rate of rewards earned this month, so if you spent $100 on the 1% category, you would get the additional 25 cents added to your rewards. (And then, once you have $100, you can redeem and get the redemption bonus).
What confused me, and why I opened the bank account, is that the wording you quote "all rewards" DOES suggest that if I spent $100 on a 5% category, I get $5 reward as usual and then I should get an additional 25% because of the bank account, so an extra $1.25. But after asking N times, one person confirmed that it is the base rate rewards. Once you get your card statement, you will see entries like (for just one merchant):
Name Charge Reward
Merchant 1 $100 $1
5%/2% Bonus $100 $4
so the 5% bonus is made up of a base 1% and then a 4% bonus, and maybe only the first is a "reward"!
But check and see what you are told.
Got it. That makes sense now. That's a bit sneaky that they split the rewards between a base amount and the 5%/2% category. Now I'll revert to my previous sentiment. It's not worth the effort to receive an extra 0.25% rewards!
May be sneaky, but it's standard practice in the industry. Read the terms on a lot of these popular cashback cards and you'll see that categories are usually counted as a 4%/4 point bonus (or however many points/% it is) over the always earned rate of 1.
I was approved US Cash + visa signature card before I moved to Chicago and when there was no US Bank within 50 miles radius.
My credit limit is $8000 and I did not opt for checking or saving account when I applied on phone.
Bank of America credit card also gives 25% redemption bonus but their limit is high. $300 or more. So $300 cash back when redeemed at a time gets you $375 but at 1% rate on everything, it takes $30,000 excluding gas and grocery which 2 & 3 %. Not impressive.
When I wanted to remodel basement, I selected home improvement store as 5% category for that quarter so cash back is not only impressive but you get good cash for spending which anyway I was going to do.
Just to clarify, my remodel above refers to US Cash + category and not Bank of America.
Update. CL is approved at $9,000.
So, again, for all who were curious:
1) Yes, you can still apply by phone
2) Underwriting took 2 days to determine official CL (though the system did provide a tentative approval of $9,000)
3) You do not need to reside in a state where they have a branch. I live in NY, where there are no US Bank branches.
Great card!
Can anyone chime in on whether or not the cashback categories are capped?
Thanks!
as of now, there is no cap.
however, the card is a year old and this is U.S. Banks 1st foray into a 5% card. the card may have been too successful as it has already removed apps from its website. this card will likely morph a few more times and a cap is one solution to helps its profitability. It could also change the current method of bonuses, e.g. providing less choices or removing certain catergories. BCP recently put in a cap so its not an unprecedented solution. this card is special though for many many reasons, i hope they do not change it. i am even considering opening a checking account with them considering the extra bonus with gold/plat status.
@pkosheta wrote:as of now, there is no cap.
however, the card is a year old and this is U.S. Banks 1st foray into a 5% card. the card may have been too successful as it has already removed apps from its website. this card will likely morph a few more times and a cap is one solution to helps its profitability. It could also change the current method of bonuses, e.g. providing less choices or removing certain catergories. BCP recently put in a cap so its not an unprecedented solution. this card is special though for many many reasons, i hope they do not change it. i am even considering opening a checking account with them considering the extra bonus with gold/plat status.
Yes, and I still have a question if the 25% redemption bonus is still active (as it is not clearly mentioned except on FAQ on the web site). In the next few days my bonus will post over $100, and I will redeem and so what happens.
@bs6054 wrote:
@pkosheta wrote:as of now, there is no cap.
however, the card is a year old and this is U.S. Banks 1st foray into a 5% card. the card may have been too successful as it has already removed apps from its website. this card will likely morph a few more times and a cap is one solution to helps its profitability. It could also change the current method of bonuses, e.g. providing less choices or removing certain catergories. BCP recently put in a cap so its not an unprecedented solution. this card is special though for many many reasons, i hope they do not change it. i am even considering opening a checking account with them considering the extra bonus with gold/plat status.
Yes, and I still have a question if the 25% redemption bonus is still active (as it is not clearly mentioned except on FAQ on the web site). In the next few days my bonus will post over $100, and I will redeem and so what happens.
And as I sent that, got an email from US Bank confirming the bonus is still active!
@nishant1 wrote:I was approved US Cash + visa signature card before I moved to Chicago and when there was no US Bank within 50 miles radius.
My credit limit is $8000 and I did not opt for checking or saving account when I applied on phone.
Bank of America credit card also gives 25% redemption bonus but their limit is high. $300 or more. So $300 cash back when redeemed at a time gets you $375 but at 1% rate on everything, it takes $30,000 excluding gas and grocery which 2 & 3 %. Not impressive.
When I wanted to remodel basement, I selected home improvement store as 5% category for that quarter so cash back is not only impressive but you get good cash for spending which anyway I was going to do.
Congratulations on your approval and awesome credit limit. I'm still waiting to hear a decision on my application. *fingers crossed*
Do you know if there's a limit to the B of A bonus? My boyfriend has a lot of rewards he can redeem and I'm wondering how many times he can redeem his rewards in $300 chunks to maximize the yield. Thanks!
@pkosheta wrote:as of now, there is no cap.
however, the card is a year old and this is U.S. Banks 1st foray into a 5% card. the card may have been too successful as it has already removed apps from its website. this card will likely morph a few more times and a cap is one solution to helps its profitability. It could also change the current method of bonuses, e.g. providing less choices or removing certain catergories. BCP recently put in a cap so its not an unprecedented solution. this card is special though for many many reasons, i hope they do not change it. i am even considering opening a checking account with them considering the extra bonus with gold/plat status.
I don't know for sure but I would guess that even with the swipe fees, issuers lose money on general 5% spending. (By general, I mean a category like restaurants, as compared to a targetted vendor such as Starbucks, where Starbucks might pay some portion of the cashback in return for increased business). So uncapped it does seem dangerous.
I wonder if the assumption is that people get such a card, and use it for everything, so the 5% is diluted by profitable 1 and 2% spending. (And of course interest if people carry a balance.) On this forum, this doesn't seem to be the case, with many/most people using the best card for each purchase, but maybe in the general population, where a user has an average 3.5 cards or something, this is nearer the truth.