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US Alliance 3%

BrutalBodyShots
Super Contributor

Re: US Alliance 3%


@Remedios wrote:


And which lender guarantees they won't nerf something? 

Are you saying that if a product reaches certain age, changes are less likely? 


Nope, just saying that generally when things seem too good to be true, they usually don't last very long.  Obviously those that have jumped on board for the card don't care about that, which is absolutely fine.  If they can find a way to make money on their product when others have failed, more power to them and cardholders can enjoy the benefits.

Message 21 of 33
BrutalBodyShots
Super Contributor

Re: US Alliance 3%


@FinStar wrote:

 

So, let's see some dodo birds...BBVA NBA, Citi Forward, 5/3 Cash Rewards, BoA Travel or Cash Privileges, FNBO TravElite, Barclays Uber, AmEx OBC, Blispay, etc, etc. 

 


That sort of just makes my point that the precedent has already been set, many times over.

Message 22 of 33
FinStar
Moderator

Re: US Alliance 3%


@BrutalBodyShots wrote:

@FinStar wrote:

 

So, let's see some dodo birds...BBVA NBA, Citi Forward, 5/3 Cash Rewards, BoA Travel or Cash Privileges, FNBO TravElite, Barclays Uber, AmEx OBC, Blispay, etc, etc. 

 


That sort of just makes my point that the precedent has already been set, many times over.


Well the majority of the above products and programs lasted for quite a while though, save for a few. 

 

But, just as it's been pointed out, there were naysayers that said 2% wasn't going to be sustainable in the long term and yet there are a plethora of products. So, given the pandemic environment, AOD seems to be holding strong.  US Alliance's CC remains to be seen as a viable long term product, and if there's demand for it, 3% is 3%.

 

FWIW, if AOD sustains itself for the long term, then what?  There were also some critics about the USB Cash+, and while some slight changes took place, it's still a very popular product. 

Message 23 of 33
BrutalBodyShots
Super Contributor

Re: US Alliance 3%

Since I'm not familiar with most of the products you listed above because I'm pretty new to credit, how many of them right from the start did people say wouldn't last?  I ask because people have been saying from the start that AOD wouldn't be sustainable.  

 

If it proves to be sustainable for the long term?  Well, that's great... as it means other products will be able to attempt top replicate their business model and we should see some competition through other lenders at some point. 

Message 24 of 33
longtimelurker
Mega Contributor

Re: US Alliance 3%


@BrutalBodyShots wrote:

Since I'm not familiar with most of the products you listed above because I'm pretty new to credit, how many of them right from the start did people say wouldn't last?  I ask because people have been saying from the start that AOD wouldn't be sustainable.  

 

If it proves to be sustainable for the long term?  Well, that's great... as it means other products will be able to attempt top replicate their business model and we should see some competition through other lenders at some point. 


It's hard to tell exactly what people thought of the viability of the products.   In some cases, the MS crowd ploughed right on, but that could be because it was so good (uncapped versions of Amex  BCP, US Cash+) or because of concerns it would go away.   I remember @kdm31091 suggesting (eventually correctly) that Citi Forward couldn't keep giving 5% on Amazon and dining, uncapped with no AF

 

But, as noted, perhaps the biggest "This cannot last' was the Citi DC, as obviously 2% on a non-Amex card couldn't work.   I was one of those, and as I have the same feeling about 3% cards, perhaps they are perfectly viable too!

Message 25 of 33
BrutalBodyShots
Super Contributor

Re: US Alliance 3%

It somewhat depends on the rest of the benefits outside of just the CB percentage.  With the Citi DC for example, while the 1%+1% has proven to be sustainable, other perks such as Price Rewind were nerfed no doubt in order to allow the main draw for the card to survive.  I have no idea what other perks go along with these 3% cards out there.  I would hope next to nothing as to help prolong the survival of the main product draw.

Message 26 of 33
summerterrace
Contributor

Re: US Alliance 3%

It seems that the 1.5-2.0% cards are most sustainable because they either:

 

offer a sign up bonus knowing that most customers will keep the card long-term and only have to pay 1.5% on long-term spending

don't offer a sign up bonus knowing that customers will not get much of a difference in cash back on a 2% card (.005 is miniscule for most spending)

on 2.5-3.0% cards the available audience is either very small, there are annual fees, there are spending/earning caps, or the benefits get nerfed.

 

Also I noticed many banks as they raise their multipliers are nerfing other benefits.  Customers seem to value the extra 1% more then the benefits... which doesn't always make sense especially on travel cards.  For example, the Citi cards that have no travel protections, or warranty protection, etc.

 

 

Chase Sapphire Preferred, Chase Freedom, IHG Rewards Club Premier, Marriott Bonvoy Premier, Princess Cruises (Barclay's)

Last Card Opened January 2017
Message 27 of 33

Re: US Alliance 3%

Looks like it has been nerfed for new applicants.

 

Only shows 2x points now.

Message 28 of 33
BrutalBodyShots
Super Contributor

Re: US Alliance 3%

And there you have it.

Message 29 of 33
longtimelurker
Mega Contributor

Re: US Alliance 3%


@MNWestGraduate wrote:

Looks like it has been nerfed for new applicants.

 

Only shows 2x points now.


Hard to tell.  It IS currently 2x for all now.  3x resumes in April till the end of the year.

Message 30 of 33
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