topic Re: 2% cards the new normal? in Credit Cards

2% cards the new normal?

rgd51 — Mon, 12 Jul 2021 21:55:08 GMT

Do you think 2% cards are the new normal for flat rate cards or do you think it is still 1.5%? On this site we are aware of tons of 2% cards from all these CUs because we are the type of people who research that stuff but the general public if they go on most websites that review CCs when shopping for one probably will only know about the double cash, paypal, and now the new wells fargo while BOA, Amex, Discover, US Bank (to the best of my memory, correct me if I'm wrong), Capital One, chase (freedom unlimited isn't a flat rate card anymore but they don't have a 2% card at this time), and many local CUs are still at 1.5%. Obviously citi and paypal weren't game changers but will this new product from wells fargo pressure the other banks into increasing their flat rate cards to 2%?

Re: 2% cards the new normal?

JNA1 — Mon, 12 Jul 2021 22:23:09 GMT

I don't think so, at least not yet. As long as the general CC customers are still app'ing for 1 - 1.5% cards and they are profitable, a lot of companies will still continue to offer them. I was recently talking to a guy at work about the BBVA/PNC buyout, and another guy overheard us and said he had was glad he already closed his ClearPoints card. I asked him why, and he said because he never used it. He said he got it because he used to bank with BBVA, and they offered him a preapproval. He said he kept it a while, but he never used it because he didn't like it as much as Chase Slate card. I was literally like 😮!
😂😂

He said the BBVA card had too high of a limit that he didn't need, and he "wasn't wanting to mess up his debt to income ratio". 🙈

Not wanting to be "that guy" I just smiled and let him continue his bliss!

Re: 2% cards the new normal?

rgd51 — Mon, 12 Jul 2021 22:53:03 GMT

I mean citi and paypal have had their 2% cards for years now but I wonder why their cards weren't a game changer? I don't think wells fargo is a game changer either since they were disgraced several years ago and will take years to rebuild their reputation. Think chase will offer a 2% card?

Re: 2% cards the new normal?

Remedios — Mon, 12 Jul 2021 23:08:33 GMT

@rgd51 wrote:
I mean citi and paypal have had their 2% cards for years now but I wonder why their cards weren't a game changer? I don't think wells fargo is a game changer either since they were disgraced several years ago and will take years to rebuild their reputation. Think chase will offer a 2% card?

@rgd51 as far as disgrace goes, you understand that Chase (in various itinerations) is the reason behind many regulations we have today and also under investigation as recently as 2020?

You also realize that Amex and BoA were/are under investigation for unauthorized account openings?

HSBC, Goldman Sachs etc. investigations galore

Even everyone's darling NFCU has a skeleton or two in their closet.

It's not that you cannot mention it, you certainly can, but since it's build into so many posts of yours, it's hard to understand moral objection to one but not the others.

In other words, if you're looking for a clean-as-a-whistle lender, it's cash time.

WF ain't first, last, or the only one.

Re: 2% cards the new normal?

rgd51 — Mon, 12 Jul 2021 23:25:49 GMT

@Remedios wrote:
@rgd51 wrote:
I mean citi and paypal have had their 2% cards for years now but I wonder why their cards weren't a game changer? I don't think wells fargo is a game changer either since they were disgraced several years ago and will take years to rebuild their reputation. Think chase will offer a 2% card?

@rgd51 as far as disgrace goes, you understand that Chase (in various itinerations) is the reason behind many regulations we have today and also under investigation as recently as 2020?
You also realize that Amex and BoA were/are under investigation for unauthorized account openings?
HSBC, Goldman Sachs etc. investigations galore
Even everyone's darling NFCU has a skeleton or two in their closet.

It's not that you cannot mention it, you certainly can, but since it's build into so many posts of yours, it's hard to understand moral objection to one but not the others.

In other words, if you're looking for a clean-as-a-whistle lender, it's cash time.
WF ain't first, last, or the only one.

Yeah I did some research about chase and the bad things they've done and the list went on and on. They've never done anything bad to me personally but it seems every major bank has gotten in trouble before. Seems wells fargo is the one that most recently made the news though or at least was talked about in the news more than the others. Chase and wells fargo are the only major banks with branches where I live except I have seen a few US banks and there is one BOA. Which big national bank do you think is the cleanest and least scandal free? Of course that's is a topic for another time as my question in this post had to do with 2% cards.

Re: 2% cards the new normal?

gdale6 — Mon, 12 Jul 2021 23:35:52 GMT

@rgd51 wrote:
@Remedios wrote:
@rgd51 wrote:
I mean citi and paypal have had their 2% cards for years now but I wonder why their cards weren't a game changer? I don't think wells fargo is a game changer either since they were disgraced several years ago and will take years to rebuild their reputation. Think chase will offer a 2% card?

@rgd51 as far as disgrace goes, you understand that Chase (in various itinerations) is the reason behind many regulations we have today and also under investigation as recently as 2020?
You also realize that Amex and BoA were/are under investigation for unauthorized account openings?
HSBC, Goldman Sachs etc. investigations galore
Even everyone's darling NFCU has a skeleton or two in their closet.

It's not that you cannot mention it, you certainly can, but since it's build into so many posts of yours, it's hard to understand moral objection to one but not the others.

In other words, if you're looking for a clean-as-a-whistle lender, it's cash time.
WF ain't first, last, or the only one.

Yeah I did some research about chase and the bad things they've done and the list went on and on. They've never done anything bad to me personally but it seems every major bank has gotten in trouble before. Seems wells fargo is the one that most recently made the news though or at least was talked about in the news more than the others. Chase and wells fargo are the only major banks with branches where I live except I have seen a few US banks and there is one BOA. Which big national bank do you think is the cleanest and least scandal free? Of course that's is a topic for another time as my question in this post had to do with 2% cards.

Chase just played games with me on a home improvment charge in the 2nd quarter with their freedom card. I put 2500 on each of my BoA Visa ccs that I selected home improvement on and received the bonus for such, I put 500 on the Chase freedom and only got one percent, they tried to tell me well the category is this and not home improvement, then I hammered them in a second SM its a category set by visa and BoA paid off on the extra points and that they better or I will be filing a CFPB complaint post haste, its now been escalated to the upper offices by their own investigators. Visa sets the MCC not the individual banks.I dont care about my relationship with Chase at this point there are plenty of others around.

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 00:00:57 GMT

Luckily they haven't played games with me, at least as far as I know. However, getting a mortgage with them was a very stressful process but they gave me a lower rate than any other bank or CU would. They gave me a 2.5% rate on my mortgage I got almost a year ago.

My bank accounts, amazon visa, mortgage, and freedom unlimited are all with chase. Wasn't by choice as my parents had Washington mutual and opened an account for me when I was 16 but months later the 2008 recession hit which caused WAMU to go out of business and they got bought out by chase so my account became a chase one and I never bothered switching banks. I've stayed with chase since they're convenient and what I know.

Re: 2% cards the new normal?

Anonymous — Tue, 13 Jul 2021 01:57:24 GMT

@rgd51 wrote:
Which big national bank do you think is the cleanest and least scandal free? Of course that's is a topic for another time as my question in this post had to do with 2% cards.

Personally, I don't think it matters all that much, somewhat of a moving target as high or low-level staff either cut corners or decide to do something "profitable". Generally, what people pay much more attention to is how they are personally treated. When bank X screws up something and doesn't fix it well, they become WORST BANK EVER, STAY AWAY!!!! In actual fact, bigger issues like multi-bank LIBOR fixing probably cost individuals more but is harder to take personally.

On topic, no 2% isn't the new normal (and haven't you posted several threads on this?) Banks are always trying to come up with "interesting" new products, so while WF did come up with a 2% card, we've seen other offerings from say US Bank with their Altitude Go/Connect, Citi with Custom Cash (thought they had the 2% card anyway) and lots of others. I assume they know/hope/believe that a wide portion of the customer base want a big percent on some special purchases, rather than a flat rate.

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 02:06:16 GMT

@Anonymous wrote:
@rgd51 wrote:
Which big national bank do you think is the cleanest and least scandal free? Of course that's is a topic for another time as my question in this post had to do with 2% cards.
Personally, I don't think it matters all that much, somewhat of a moving target as high or low-level staff either cut corners or decide to do something "profitable". Generally, what people pay much more attention to is how they are personally treated. When bank X screws up something and doesn't fix it well, they become WORST BANK EVER, STAY AWAY!!!! In actual fact, bigger issues like multi-bank LIBOR fixing probably cost individuals more but is harder to take personally.

On topic, no 2% isn't the new normal (and haven't you posted several threads on this?) Banks are always trying to come up with "interesting" new products, so while WF did come up with a 2% card, we've seen other offerings from say US Bank with their Altitude Go/Connect, Citi with Custom Cash (thought they had the 2% card anyway) and lots of others. I assume they know/hope/believe that a wide portion of the customer base want a big percent on some special purchases, rather than a flat rate.

I did post about it before but the post I had about 2% cards in the past was specifically about the WF card and if it would be a game changer. This post is about if 2% is the new norm. If you consider the topics to be too similar I apologize for any inconvenience.

Re: 2% cards the new normal?

Anonymous — Tue, 13 Jul 2021 02:18:15 GMT

I don't think it's the new normal. Yet.

Synchrony also offers a 2% CB card other than PayPal (one step up from my plus).

I don't think it will be the new normal until there are more cards available to the masses across the board I'd say that 1% is the norm as even cards like discover or amex are 1% for purchases outside of their bonus or rotating categories. 1.5 and up is sought after which is why Capital One makes the one with the fee. Most people haven't heard of the PP Mastercard. I didn't until I was sent an email to apply and I'm like awesome, let's see who issues this card, what their average credit score for approval, let me go to myfico forums and see what they say about the card, let me read reviews on several sites, etc etc then let me do a search for other 2% cards and repeat the process to compare which is the card I'm most likely to be approved for. Most people don't put that much effort into it and assume if you have credit cards that means debt.

I'd say the general population looking to get credit cards just goes to their local bank or CU and gets a card or two from them and don't put much effort into researching better benefit cards like the people of this forum, they just aren't as aware and I also don't think most people put as much spend on credit cards for the rewards. They only use cards in emergency situations instead of to maximize Cashback.

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 02:44:55 GMT

@Anonymous wrote:
I don't think it's the new normal. Yet.

Synchrony also offers a 2% CB card other than PayPal (one step up from my plus).

I don't think it will be the new normal until there are more cards available to the masses across the board I'd say that 1% is the norm as even cards like discover or amex are 1% for purchases outside of their bonus or rotating categories. 1.5 and up is sought after which is why Capital One makes the one with the fee. Most people haven't heard of the PP Mastercard. I didn't until I was sent an email to apply and I'm like awesome, let's see who issues this card, what their average credit score for approval, let me go to myfico forums and see what they say about the card, let me read reviews on several sites, etc etc then let me do a search for other 2% cards and repeat the process to compare which is the card I'm most likely to be approved for. Most people don't put that much effort into it and assume if you have credit cards that means debt.

I'd say the general population looking to get credit cards just goes to their local bank or CU and gets a card or two from them and don't put much effort into researching better benefit cards like the people of this forum, they just aren't as aware and I also don't think most people put as much spend on credit cards for the rewards. They only use cards in emergency situations instead of to maximize Cashback.

I know we on this site are a very small percentage of credit card users. I think the general public wants a cash back or travel card to get some rewards but aren't as obsessed with maximizing them as we are.

Re: 2% cards the new normal?

NoMoreE46 — Tue, 13 Jul 2021 03:14:40 GMT

@JNA1 wrote:
Not wanting to be "that guy" I just smiled and let him continue his bliss!

Tisk tisk- gimme your MyFico membership card @JNA1 ...

Re: 2% cards the new normal?

FalconSteve — Tue, 13 Jul 2021 10:24:38 GMT

@rgd51 wrote:
Do you think 2% cards are the new normal for flat rate cards or do you think it is still 1.5%? On this site we are aware of tons of 2% cards from all these CUs because we are the type of people who research that stuff but the general public if they go on most websites that review CCs when shopping for one probably will only know about the double cash, paypal, and now the new wells fargo while BOA, Amex, Discover, US Bank (to the best of my memory, correct me if I'm wrong), Capital One, chase (freedom unlimited isn't a flat rate card anymore but they don't have a 2% card at this time), and many local CUs are still at 1.5%. Obviously citi and paypal weren't game changers but will this new product from wells fargo pressure the other banks into increasing their flat rate cards to 2%?

I've wondered that too. I think sub 2% cards will persist, but I think 1.5% cards seem kind of silly. I guess time will tell, but I am leaning toward 1.5% being phased out.

Re: 2% cards the new normal?

FalconSteve — Tue, 13 Jul 2021 17:33:36 GMT

@rgd51 wrote:
Luckily they haven't played games with me, at least as far as I know. However, getting a mortgage with them was a very stressful process but they gave me a lower rate than any other bank or CU would. They gave me a 2.5% rate on my mortgage I got almost a year ago.

My bank accounts, amazon visa, mortgage, and freedom unlimited are all with chase. Wasn't by choice as my parents had Washington mutual and opened an account for me when I was 16 but months later the 2008 recession hit which caused WAMU to go out of business and they got bought out by chase so my account became a chase one and I never bothered switching banks. I've stayed with chase since they're convenient and what I know.

My parents used a bank I hated, so I opened my own account at an FI that I like better. Chase banking is the worst... maybe I am biased after my latest issue with them freezing my wife's checking and stealing our money for several months even with CFPB involved. They froze a bunch of accounts because of the pandemic and coudn't unfreeze the account.

That mortgage rate is awesome. My Dad used to work for Chase's mortgage division. They even paid for a Carribean cruise when I was a kid because my Dad's office was #1 in the country (my sister & I were the only kids... I was 14... that I went, so we were spoiled a bit).

Re: 2% cards the new normal?

JNA1 — Tue, 13 Jul 2021 11:54:59 GMT

@NoMoreE46 wrote:
@JNA1 wrote:
Not wanting to be "that guy" I just smiled and let him continue his bliss!

Tisk tisk- gimme your MyFico membership card @JNA1 ...

Trust me, there's no help for that poor fella. He's one of that guys that you can't tell anything. I feel like he probably sits at stop signs waiting for them to turn green! 😂

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 17:29:28 GMT

@FalconSteve wrote:
@rgd51 wrote:
Luckily they haven't played games with me, at least as far as I know. However, getting a mortgage with them was a very stressful process but they gave me a lower rate than any other bank or CU would. They gave me a 2.5% rate on my mortgage I got almost a year ago.

My bank accounts, amazon visa, mortgage, and freedom unlimited are all with chase. Wasn't by choice as my parents had Washington mutual and opened an account for me when I was 16 but months later the 2008 recession hit which caused WAMU to go out of business and they got bought out by chase so my account became a chase one and I never bothered switching banks. I've stayed with chase since they're convenient and what I know.
My parents used a bank I hated, so I opened my own account at an FI that I like better. Chase banking is the worst... maybe I am biased after my latest issue with them freezing my wife's checking and stealing our money for several months even with CFPB involved. They froze a bunch of accounts because of the pandemic and coudn't unfreeze the account.

That mortgage rate is awesome. My Dad used to work for Chase's mortgage division. They even paid for a Carribean cruise when I was a kid because my Dad's office was #1 in the country (my sister & I were the only kids... I was 14... that went, so we were spoiled a bit).

Is banking with chase really much different than with citi, Wells Fargo, BOA, US Bank, etc? All those banks seem to charge nearly identical fees and pay almost nothing in APY for your savings account.

That mortgage rate is one of the reasons I talk so highly of chase in these threads. The construction on my town home kept getting delayed due to issues the builder had with the supplier and chase kept extending the rate lock period without charging additional fees.

1.5% cards potentially being phased out does make me wonder if chase will increase the FU non category spend rate to 2%?

Re: 2% cards the new normal?

FalconSteve — Tue, 13 Jul 2021 17:38:58 GMT

I've never paid a fee for banking and banks like Chase, Citi, and BoA are really just for there new account bonus.

Ally, Discover, T-Mobile (1-4%), SoFi, Aspiration, and credit unions give you a better rate of return, lower fees, and sometime have free checks

Re: 2% cards the new normal?

Anonymous — Tue, 13 Jul 2021 17:42:20 GMT

@rgd51 wrote:

1.5% cards potentially being phased out does make me wonder if chase will increase the FU non category spend rate to 2%?

IF 1.5% cards were phased out, Chase might adjust in some way. But the phase out just isn't happening!

With the CSR, FU is worth 2.25% on travel/pay yourself back, all without having to transfer to partners

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 17:53:55 GMT

@Anonymous wrote:
@rgd51 wrote:
1.5% cards potentially being phased out does make me wonder if chase will increase the FU non category spend rate to 2%?
IF 1.5% cards were phased out, Chase might adjust in some way. But the phase out just isn't happening!

With the CSR, FU is worth 2.25% on travel/pay yourself back, all without having to transfer to partners

Yeah but the CSR had a $550 AF and not everyone wants an AF. I know I don't and none of my cards have an AF.

Why don't you think the phase out of 1.5% cards is happening?

Re: 2% cards the new normal?

rgd51 — Tue, 13 Jul 2021 17:55:28 GMT

@FalconSteve wrote:
I've never paid a fee for banking and banks like Chase, Citi, and BoA are really just for there new account bonus.

Ally, Discover, T-Mobile (1-4%), SoFi, Aspiration, and credit unions give you a better rate of return, lower fees, and sometime have free checks

Didn't know T mobile had a bank. The credit unions where I live don't have any remarkable credit cards. Have you ever banked with citi?