@greatscott85 wrote:Dropping bombs with no reference point?
Are you trying to break everyone's heart!?
I'm just kidding
!
I mean, the question is a totally valid one, particularly around sustainability. I would say that card has gotten them ALOT of business. It could be safely assumed that usage would drop dramatically if the % back went down. The market has several 2% cards and greater with points (for those who like points).
Did you see anymore more details? Now I'm just curious...
I was always wondering how come banks don't try to upstage their competition with additional .01% on their CB offers? Like Bank A give's 2%, then Bank B's campaign can be "Ok, we give 2.1%", then another bank "we give 2.2%" and so on. They do it with CDs and Savings accounts APRs, why not CCs. 🤔
@Wavester64 wrote:I was always wondering how come banks don't try to upstage their competition with additional .01% on their CB offers? Like Bank A give's 2%, then Bank B's campaign can be "Ok, we give 2.1%", then another bank "we give 2.2%" and so on. They do it with CDs and Savings accounts APRs, why not CCs. 🤔
Actually, some have done or still do this exact bonus program, @Wavester64! Bank of America used to offer a 10% bonus on card earnings for deposit account holders. One bank that still does a bonus is BMO Harris which offers a 10%, 15% or up to 20% bonus depending on which card you hold and spending categories.
Bank of America shifted from the flat 10% bonus into their Preferred Rewards program which offers progressively enhanced earnings on credit cards, depending on the deposit level to reward relationship. (25%, 50%, or 75% multipliers.) Another bank that is doing something similar is Truist, the merger of BB&T and Suntrust. The Truist "Enjoy Cash" 1.5% card pays a 10%, 25% or 50% bonus when redeemed into a Truist deposit account, depending on your total deposits with the bank making this up to a 2.25% card if you have $100K on deposit.
I believe there are other examples and often the kicker is to have a deposit account or a certain level of deposits, but there are those types of enhanced earning programs.
@sarge12 wrote:... I consider any and all rewards as temporary and subject to reduction. For me at least, the rewards are the icing on the cake ...
I do not currently have any card that gives 3% cash back and likely never will. Why? I have seen no offers for such cards that offer 200 dollar SUB's ... The big money is in the SUB on a future sock drawer card.
I share the view of @sarge12 that rewards aren't the end-all and are the "icing on the cake." But some of the reasons behind that similar philosophy have some differences. To me, the most important priority to me is building and maintaining a great credit file to suit my needs for if and when I need to apply for more credit. In that regard, keeping most of my cards for the long term seems to me a more prudent strategy. While I have before and would in the future open an account for short-term goals such as a BT offer or 0% financing, my guiding principle has normally been to ask "how will this card serve me for the next ten years or longer," not for the next three to six months. I don't want to open accounts primarily for a SUB which I just have to sock-drawer and/or later close because they never really fit my needs.
Not there's anything wrong with a SUB-focused strategy as part of card rewards, but I'm sure this is a reason why AOD FCU didn't offer a SUB and why the 3% card may prove to be sustainable after all! Just like @sarge12 wasn't looking for a card without a SUB, AOD FCU wasn't looking for a customer like him that would earn the SUB just to sock drawer the card. They wanted a more long-term customer. It was a smart move on their part, IMO.
The flip side for anyone who isn't interested in constantly adding new cards every year to keep up the SUB income, a card like the AOD FCU Visa will continue to provide strong rewards earnings year-over-year without having to incur regular new account penalties and CRB inquiries. While I love SUBs like anyone and will take advantage of them when appropriate, my personal opinion is that focusing more on the long-term benefits of a card versus the short-term benefits of a SUB is less hassle. The $20K spend before out-earning a 2% card with a $200 SUB is a moot point to me.
My guess was someone was stirring the pot possibly someone that couldn't get the card? Sure it could be nerfed and might but I am coming close to 2 years with it and no nerfs yet and obviously the best straight back fixed lower APR card there is... If people keep talking and calling AOD might realize they are the best kid on the block and consider it the nerf as well, who knows. They have certainly tightened up which helps and their real target audience where they are based aren't near as credit savoy and probably do carry balances although at low APR's where they might not be losing money, etc.. Time will tell, but it has been a great two years so far
@longtimelurker wrote:
@Taurus22 wrote:Well, the bigger problem I see here is this....
Someone starts a wild rumor that this "may" happen. Sure, at any time any card is subject to changes from any lender. But now, rather than everyone chilling out and quietly using their AOD 3% card while holding their breath in hopes that no dust gets stirred......everyone and their uncle's uncle is now calling AOD, freaking out and raising attention to something that may have never been true and actual. But due to the high call volume and constant questions pouring in, (along with references to this forum, which is never good).....this is going to have AOD board members talking about the issue and investigating why there is so much attention on a non-issue.....which then makes it a true issue.
I don't think this is a realistic concern. In the fringe areas there are frequent reminders not to call the issuer, but these are usually where someone has found some sort of loophole/grey area, and while people are happily exploiting it, some idiot/honest citizen calls and asks the issuer to make sure it's ok. This gets some rather negative feedback!
Here AODFCU is pretty aware that they are offering 3% on all transactions, and financial results are always being monitored. So I don't think people asking is going to create any new "Oh, maybe we SHOULD nerf it" discussions.
That's not necessarily true either.......look at Citi. After realizing that everyone was making extensive efforts to double-PC from Double Cash to the new Custom Cash (a somewhat backdoor approach) Citi entirely shut that down by stopping all PC's from Double Cash to anything. They do pay attention and sometimes they do react to customer behavior like this. 3% unicorns are very hard to find....USAlliance has already begun their exit strategy. So, the AOD unicorn just doesn't need to be poked.....and it's not necessarily that they directly discuss an all-out nerf....but the added attention and flood of redundant phone calls, which leads to complaints from the credit union staff about this unnecessary attention, could lead to unwanted changes. That's all I'm saying.
Alliant has a 2.5% card and there is a field of 2% cards out there now.....it's not like the world ends if AOD ever did nerf. And eventually a new 3% card will rear its head.....eventually.
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