The Wells Fargo Home Rebate Rewards Visa
Along with retirement accounts, most Americans count their home mortgage as one of their most important vehicles for saving. The American Dream is not just home ownership, but actually paying off a mortgage and owning a home outright. Wells Fargo bank offers its Home Rebate Rewards Visa card, not just to earn cash back or to take a vacation, but to get customers one step closer complete home ownership.
Home rebate users earn 1% rebates that are applied to the principal balance of eligible Wells Fargo mortgage loans. These rebates are applied in $25 increments, each time a cardholder spends $2,500, but there is no limit on the number of rebates that can be received.
This card also offers a 0% introductory financing offer on both purchases and balance transfers for six months.
Other Features
The best credit cards in the rewards category return cash back or loyalty points that cardholders treat as a bonus and add to their discretionary spending. By diverting these rewards to a mortgage account, cardholders undertake a strategy of automatic savings that will pay dividends in the long run. By reducing their principal each year, they will pay less interest on their loan than they otherwise would have and expedite the process of finishing off mortgage balances.
Unfortunately, at a mere 1% cash back rate, cardholders are not earning a very competitive reward. Other cards return a minimum of 1%-2% as well as bonuses for spending in various merchant categories. The introductory financing offer of six months is also less than many competing 0% APR credit card products.
Essentially, the Wells Fargo Home Rebate Rewards Visa is aimed at existing Wells Fargo customers who want to channel any rewards to their mortgage. The ideal customer is willing to overlook many other competing products with higher reward rates in order to force themselves to add to their mortgage payments. Customers that are intrigued by the introductory financing terms should consider more generous offers from other banks, however, as it is currently possible to obtain 0% rates for up to 21 months.
