Mastercard Elite 3x Rewards Unlimited from CU

[Anonymous]

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@batsy71 wrote:

This card would have been a must have for many reasons:

1) There are simply too many cc transactions that are not covered by category spends: Medical Bills, Insurance, hoa, rent, tuition bills, income tax, property tax. For someone like me living in west coast this can amount to 40-50k/yr. Getting an additional 1% discount versus the typical 2% card would easily save me 4-500$/yr.

2) Ok, i sort of exaggerated in my previous point, there are cc's that giv 3% on medical bills (BBVA) and insurance (State Farm), but having one card that does it all and helps me get rid of like 4-5 cards that i had to hold on to, to reach such a large saving. That's pretty impressive.

3) The best aspect of the card comes out when combined with Plastiq. Plastiq allows you to pay mortgage using cc. But only non-Visa cc's are allowed to pay mortgage. Plastiq also charges 2.5% transaction fees for each bill paid. So essentially with this credit card one could save 0.575% of their mortgage (or rent). With a 1500$ mortgage each month, thats 103$/yr. Its usually a little more cos Plastiq will offer special 1% transaction rates 4x/yr

4) There are actually some cedit unions that provide 3% on everything cc's like Safe America CU that will allow you to have a 3% cc if you lock up 100k$ in cash. But these are moot, given their **bleep**ty interest rates, one would lose more on interest of their 100k than gain from the 3% cash back, not to mention the cc is a Visa and not a Mastercard (miss out on point 3)).

With all this in mind, I have started to ask myself, is it maybe worth, literally renting a small place for a month in the locations of these CUs? A small rent in Miami for a month would probably cost me 450$. Add another 80$ for my first utility bill. If i prefer to handle this in person and not just online, add a 250$ round trip plane ride. With this setup I should easily get the CU membership and then the CC. For <800$ i get this CC and recoup its cost in < 2 yrs. After that it's pure gains.

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I think that CUs that offer this won't offer it for long once people start abusing it so you likely won't get to recoup your cost. 

[batsy71]

> I think that CUs that offer this won't offer it for long once people start abusing it so you likely won't get to recoup your cost. 

Many CU's actually dont nerf them like the PCM CU 5% on everything cc that still exists 4 years since it was noticed by someone. In some other cases, a card was nerfed for the new applicants, but older cald holders in good standing were told, their benefits would continue.

Situations where card benefits were pulled out for previous card holders are far and few in my experience.

[Anonymous]

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@batsy71 wrote:

> I think that CUs that offer this won't offer it for long once people start abusing it so you likely won't get to recoup your cost. 

Many CU's actually dont nerf them like the PCM CU 5% on everything cc that still exists 4 years since it was noticed by someone. In some other cases, a card was nerfed for the new applicants, but older cald holders in good standing were told, their benefits would continue.

Situations where card benefits were pulled out for previous card holders are far and few in my experience.

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The PCM card, much like this one, has a strict geofence. Banks and CUs both have ways of dealing with what they deem to be abuse. I'm honestly surprised they haven't all started adding Plastiq to the list of prohibited transactions but it's probably coming soon. You already can't use Capital One personal cards on Plastiq. 

PCMCU is capped at $1000 a month in transactions ($50 cash back) which is the only reason that program can continue to exist. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Ok if you work for Holiday Inn, Macys Florida, Clubmed, Sams Club, Office Depot, or Bloomingdales, you are in a qualifying SEG!!

If you have an immediate family member who is a member, or if you live with a member...otherwise geo-fenced.

I need an immediate family member, anybody looking to adopt? Only requirement is you work for one of the above, LOL, j/k.

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They seem to still be enforcing their fence with a utility bill requirement. 

https://www.doctorofcredit.com/fl-tropical-financial-credit-union-3-cashback-mastercard-credit-card-...

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If issuing cards to customers were such a great thing, you'd think they'd want to offer it to as many people as they can, and have no fences.

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CUs have to be really careful. Banks are trying real hard to get their not for profit status revoked. The more that they loosen restrictions away from their charter, the more the banks push. 

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But PNC cash rewards card is geo fenced, and they won't allow outside cardholders. 

[Anonymous]

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@Aim_High wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:
...otherwise geo-fenced.

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They seem to still be enforcing their fence with a utility bill requirement. 
https://www.doctorofcredit.com/fl-tropical-financial-credit-union-3-cashback-mastercard-credit-card-...

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If issuing cards to customers were such a great thing, you'd think they'd want to offer it to as many people as they can, and have no fences.

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CUs have to be really careful. Banks are trying real hard to get their not for profit status revoked. The more that they loosen restrictions away from their charter, the more the banks push. 

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Good point about protecting their Credit Union nonprofit status.  But also remember that banks offer rewards credit cards to entice us so that they can make money from us in other ways.  They want to be your primary financial institution.  Sure, there is the chance for lenders to make up some of that rewards money they are paying out from swipe fees, interest, late payments, etc.  But they sometimes are willing to take a loss in that area if they're making even bigger money financing car loans, houses, or holding substantial savings accounts or CDs.  Those of us on My Fico who shop around and are more credit-savvy are the exception. 

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Yeah, I was thinking about that earlier today. Credit cards might be a loss leader for banks. The prize is in savings accounts. For instance,  I have a MM account with a 7 branch bank. I keep a stash of quick transfer cash in there (not a ton, around 20K), and I'm surprised I get a personal Christmas card from them every year (my other savings banks don't do that, but those others are a lot larger with bigger depositors). I figured if they give me 2%, and lend it out at 10%, that's $1,600 gross profit annually on me. If they had credit cards and I got a no rewards, low benefit card and it was my driver, they wouldn't make nearly that much in swipe fees.

[Neiltyson]

Interesting card. I live in Miami and will look at getting it.

When people say geofenced though, are you only talking about living in South Florida to join? Or also for people that will use this card outside of Florida?

All my accounts are at my childhood home but I travel a lot. Haven't been back in miami a year. So all my spend would have been elsewhere. Would that be "abuse" ? 🤔Cheers

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Ok if you work for Holiday Inn, Macys Florida, Clubmed, Sams Club, Office Depot, or Bloomingdales, you are in a qualifying SEG!!

If you have an immediate family member who is a member, or if you live with a member...otherwise geo-fenced.

I need an immediate family member, anybody looking to adopt? Only requirement is you work for one of the above, LOL, j/k.

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They seem to still be enforcing their fence with a utility bill requirement. 

https://www.doctorofcredit.com/fl-tropical-financial-credit-union-3-cashback-mastercard-credit-card-...

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If issuing cards to customers were such a great thing, you'd think they'd want to offer it to as many people as they can, and have no fences.

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CUs have to be really careful. Banks are trying real hard to get their not for profit status revoked. The more that they loosen restrictions away from their charter, the more the banks push. 

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So I am assuming those that "anyone can join by joining [random non-profit]" are potentially most at threat?      And at least AOD actually made you pay to join something (unless you got in through "real" requirements).   I just joined Pen Air, and they paid the one time $1 fee needed to their chosen non-profit.   Which really is identical to anyone can join!

[Neiltyson]

@Anonymous you can join a bunch with a membership to American Consumer council. Here's a list: https://ficoforums.myfico.com/t5/Credit-Cards/American-Consumer-Council-Membership-Affiliated-Credit...

Also,tthe membership to the council is free when you use the code "consumer" 😂

Here are some notable ones that people on here seem to like from that list:

• Andrew's Federal 
• NASA CU
• State department sdfcu 
• Police & Fire 
• Aspire 
• US postal service 
• United Federal 
• Logix

[Anonymous]

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@Neiltyson wrote:

@Anonymous you can join a bunch with a membership to American Consumer council. Here's a list: https://ficoforums.myfico.com/t5/Credit-Cards/American-Consumer-Council-Membership-Affiliated-Credit...

Also,tthe membership to the council is free when you use the code "consumer" 😂

Here are some notable ones that people on here seem to like from that list:

• Andrew's Federal 
• NASA CU
• State department sdfcu 
• Police & Fire 
• Aspire 
• US postal service 
• United Federal 
• Logix

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Yes, I understand that.   Just saying that if the banks are pushing against CUs, these type, where there is no real geographical or SEG requirement, are probably most at risk.   But whether that is going to be a real issue or not, we don't know!

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:
Ok if you work for Holiday Inn, Macys Florida, Clubmed, Sams Club, Office Depot, or Bloomingdales, you are in a qualifying SEG!!

If you have an immediate family member who is a member, or if you live with a member...otherwise geo-fenced.

I need an immediate family member, anybody looking to adopt? Only requirement is you work for one of the above, LOL, j/k.

---

They seem to still be enforcing their fence with a utility bill requirement. 

https://www.doctorofcredit.com/fl-tropical-financial-credit-union-3-cashback-mastercard-credit-card-...

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If issuing cards to customers were such a great thing, you'd think they'd want to offer it to as many people as they can, and have no fences.

---

CUs have to be really careful. Banks are trying real hard to get their not for profit status revoked. The more that they loosen restrictions away from their charter, the more the banks push. 

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So I am assuming those that "anyone can join by joining [random non-profit]" are potentially most at threat?      And at least AOD actually made you pay to join something (unless you got in through "real" requirements).   I just joined Pen Air, and they paid the one time $1 fee needed to their chosen non-profit.   Which really is identical to anyone can join!

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It's certainly something the banks don't like. Congress is still convinced that CUs offer benefits to their members that are worthy of a continued not for profit status though despite their rapid expansion beyond their original purpose of offering financial services, especially lending, to people who wouldn't otherwise get it or would get it at unaffordable rates. Time will tell if that remains the case long term. Some credit unions already act like banks. 

With PenFed having a national charter now, it's all going to play out pretty quickly one way or the other. 

https://www.americanbanker.com/news/do-credit-unions-still-warrant-a-tax-exemption