Big Changes (bad) Coming to US Bank Cash+?

[andre181]

I really hope this isn't true, but I'm sure it is. US Bank couldn't afford to keep doing what its been doing with this card.

Travel and home improvment aren't that big of a deal, I can get 5% for those on other cards, but I will really miss the bill pay category. Hopefully its true there will be a "cell phone" category as my phone bill is one of my higher bills. Also, I wonder if the bookstores category will include Amazon. It should based on MCC code.

I wish they would just leave the categories alone and put a cap of $1500 or $2000 quarterly. That would solve the problem but still keep people happy. Or I would even be happy if we only got one choice of 5% category instead of two, and two 2% categories instead of one.

But with that said, I just paid $1100 worth of bills just to earn my last little bit.

[trumpet-205]

To me it is likely true. I mean if unlimited 5% cashback is sustainable, I'm sure Chase, Discover, and Citi would've jump on it to attract more customer.

I'm really interested to see if bookstore will be added to Cash+.

[pkosheta]

Bill pay was always going to be stiffled.  How could it not be?   but its still a 5% card in some form, with the choices, can still serve as a card to fill in those 5% holes.  disappointed yes.  suprised no.  Caps would have been acceptable, everyone else uses them. but losing bill pay hurts.  that was a major draw for the card.  i guess ill have to wait for the mailer or march to see what the real damage is.  with the caps and loss of bill pay the 1/time per year for the 25 bonus doesnt sting as much as i expect redemptions will go WAY down.  i dont use it for the 2% as i have pendfed plat, so it was pretty much a card i used for the 5% cats, though i had been putting a few charges on it valuing it @ 1.25% for everyday charges.  i had considered adding a us bank checking account for the extra .25 points/dollar and make this my card for all 'other' charges.  i may still do so, as i dont plan to app for fid amex or priceline visa soon in order to help my aaoa and keep my total available credit down (i have too much revolving credit and no credit diversity as all my accounts are credit cards now that student loans are paid off.)

[bs6054]

---

@pkosheta wrote:

@Anonymous pay was always going to be stiffled.  How could it not be?   but its still a 5% card in some form, with the choices, can still serve as a card to fill in those 5% holes.  disappointed yes.  suprised no.  Caps would have been acceptable, everyone else uses them. but losing bill pay hurts.  that was a major draw for the card.  i guess ill have to wait for the mailer or march to see what the real damage is.  with the caps and loss of bill pay the 1/time per year for the 25 bonus doesnt sting as much as i expect redemptions will go WAY down.  i dont use it for the 2% as i have pendfed plat, so it was pretty much a card i used for the 5% cats, though i had been putting a few charges on it valuing it @ 1.25% for everyday charges.  i had considered adding a us bank checking account for the extra .25 points/dollar and make this my card for all 'other' charges.  i may still do so, as i dont plan to app for fid amex or priceline visa soon in order to help my aaoa and keep my total available credit down (i have too much revolving credit and no credit diversity as all my accounts are credit cards now that student loans are paid off.)

---

With (if true) caps, not sure the bank account helps.  I would anyway apply (who cares about AAoA!)  for Fidelity Amex/Priceline Visa, as these will fill the holes in all the other cards and probably pay back much more than the 0.25% on Cash Plus.

With all the mentioned downgrades, this card can still distinguish itself as "special" by continuing to allow the user to select the 5% categories.  To me that is a big plus, I don't like cards that rotate categories (I may not want those categories, or need them at the time they are offered).  However, I expect with this model people are more likely to meet the cap than on a general rotator, which might lead to lower caps than the standard $1500 per quarter.

Still speculation, let's see if the rumoured letters arrive next week.  (Which seems way too early for changes slated for May)

[ztnjpv]

Yeah. I read this thread earlier and panicked. I went to my gas and electric utilities and charged $2800 to make sure I got them in. 

But I kinda figured that the current rewards would work til the end of the 1st quarter. Makes sense. I'll be charging the max to my two main utilities over the next two months and simply work off the credit. I hope I can get my business insurance policy's renewal in time to charge it for the year. I think I renew in Feburary or March. I may hit $2300 cash back by the end of the 1st quarter if I get enough in. hehehe

I got the card in mid late July. 

[bs6054]

Unfortunately, the lesson for me learned from this (even if the rumor isn't quite true, something will happen soon) and the BCP capping, and I'm sure many other examples is:

a) Too good things will go away

b) so it makes sense to use them (or abuse them) to the max while you still can.  Even if you don't, others will, and a) will apply!

The tragedy of the commons in action.

[bs6054]

So, if you were planning a new credit card and wanted to get a lot of interest, but keep it sustainable, what would you do?

I'm thinking of something boring like spend $80K and get $640 (with no other rewards).  So this is "8% ON EVERYTHING!!!!", but only once you reach a high threshold, and nothing if you don't.   And the issuer can adjust threshold and percent if necessary.   But would you apply, and direct all your spending?

[Open123]

---

@bs6054 wrote:

So, if you were planning a new credit card and wanted to get a lot of interest, but keep it sustainable, what would you do?

I'm thinking of something boring like spend $80K and get $640 (with no other rewards).  So this is "8% ON EVERYTHING!!!!", but only once you reach a high threshold, and nothing if you don't.   And the issuer can adjust threshold and percent if necessary.   But would you apply, and direct all your spending?

---

The most difficult challenge is to keep the fringe users from abusing the program.  I'm not sure if there's a cost effective way of keeping the small percentage of users from abusing whatever rewards structure in place.

The only really effective way is to either place in earning caps, draconian audits (Amex), or arbitrary closures (Chase).

In your example, how do you keep the one intent on abusing your rewards by meeting the spending requirement with amzn payments, gift cards, and all the other assorted ways of creating fake spending?

[Alcibiades]

---

@bs6054 wrote:

So, if you were planning a new credit card and wanted to get a lot of interest, but keep it sustainable, what would you do?

I'm thinking of something boring like spend $80K and get $640 (with no other rewards).  So this is "8% ON EVERYTHING!!!!", but only once you reach a high threshold, and nothing if you don't.   And the issuer can adjust threshold and percent if necessary.   But would you apply, and direct all your spending?

---

If you are going to have rewards that are that good, the card needs to have a rather high annual fee (this card probably should have cost $200 or more).  Also, limit the "bill pay" category to cell phones, cable tv, etc (exclude insurance, electric, gas, etc).

[bs6054]

---

@Open123 wrote:

---

@bs6054 wrote:

So, if you were planning a new credit card and wanted to get a lot of interest, but keep it sustainable, what would you do?

I'm thinking of something boring like spend $80K and get $640 (with no other rewards).  So this is "8% ON EVERYTHING!!!!", but only once you reach a high threshold, and nothing if you don't.   And the issuer can adjust threshold and percent if necessary.   But would you apply, and direct all your spending?

---

The most difficult challenge is to keep the fringe users from abusing the program.  I'm not sure if there's a cost effective way of keeping the small percentage of users from abusing whatever rewards structure in place.

The only really effective way is to either place in earning caps, draconian audits (Amex), or arbitrary closures (Chase).

In your example, how do you keep the one intent on abusing your rewards by meeting the spending requirement with amzn payments, gift cards, and all the other assorted ways of creating fake spending?

---

Good point.  I will limit "qualified" spending to $6k a month.  Hardly my fault that 12*$6K is a little less than the $80K threshold.