US Bank FlexPerks Select Rewards Visa Card
Every bank is trying to lure credit card customers with the best credit card offers on rewards. US Bank had offered the WorldPerks card affiliated with Northwest Airlines, but that carrier has since been acquired by Delta. US Bank tried to retain their existing WordPerks cardholders by creating their proprietary FlexPerks rewards program. They now offer their FlexPerks Select Rewards Visa Card to customers who want to earn some rewards but do not wish to pay an annual fee.
Cardholders will receive one FlexPoint for each $2 spent, and new applicants will receive a sign up bonus of 5,000 points after their first $250 in purchases. When it comes time to redeem FlexPoints, customers can choose from travel rewards, merchandise, gift cards, or statement credits. Air travel rewards are redeemed based on the dollar value of the ticket. For example, 20,000 points are required to redeem a ticket valued at a maximum of $400. Therefore, these points are worth, at most, two cents each towards the purchase of an airline ticket. Other award redemption options are worth a single cent per point.
New cardholders will receive a 0% APR on balance transfers that is valid for six months, but they carry a 4% balance transfer fee. The standard interest rate is equal to the Prime Rate plus 10.24% to 20.24%, based on the applicant’s credit score. There is no annual fee for this card, but there is a 3% foreign transaction fee on most purchases processed outside the United States, although foreign transactions in U.S. Dollars are subject to only a 2% fee.
The primary motivation for using this card is the ability to manage it alongside of other US Bank accounts. With no annual fee, one could argue that there is little cost to receiving this card.
The requirement to spend $2 to receive just one FlexPoint means that, at best, card holders could only receive 1% value per dollar spent. Even to receive that marginal rate, one would have to have to redeem airline tickets worth the maximum value permitted and not a dollar more. In all other circumstances, customers will only receive about a half of a cent of value from each dollar spend on this card. Since 1% cash back is the bare minimum cardholders should expect from any rewards credit card, this is a sub-standard offer. Even the introductory financing terms are weak, as many cards feature a longer financing period with a lower balance transfer fee.
This card could only be recommended as a backup or a spare card that can find a place in one’s wallet next to another product with better terms. Rewards seekers can easily find products that return 1-2% cash back or even more valuable points or miles, while those seeking a 0% introductory rate should be able to find a product that offers at least twelve months of interest free financing and a lower balance transfer fee. There are many completive credit cards being offered by a variety of institutions, but this is not one of them.