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This is why retailer cards are worth looking into

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Look what showed up in my inbox today:

bestbuy20

$20 for using the card one time? Sure, thanks! And look what showed up in my inbox a few days ago:

brooks brothers 20

$20 for using the card five times? Sure, thanks!

Almost everybody who writes about credit cards focuses on the ones where you get a nice bonus up front and/or a 5% spending bonus on some category. Off the top of my head, I can think of three reasons for this:

  1. Everybody does it because everybody does it.
  2. The point/mile payouts are quicker and more guaranteed.
  3. There aren’t a whole lot of affiliate payouts for retailer cards.

Retailer credit cards don’t have huge sign-up bonuses, big promotional budgets, or the allure of free vacations. But based on my dabbling so far, I’m starting to think of them as dairy cows: keep a stable of them around and you can periodically score some milk.

Another good thing: since nobody’s talking about them and few people have them, you can talk (for now, anyway) without having to worry about killing a deal.

Which retailer cards should you get? There are two types of retailer cards: the kind you can only use at a particular retailer, and the kinds, such as you see above, which are cobranded Visa/MasterCard/Amex cards. In general, the V/MC/Amex cards probably have more potential since you have many more places to spend if there’s a really good promotion. And judging by their marketing,  they apparently have a tough time persuading people to use the cards outside of that retailer which is why they’ll pony up $20 for minimal use.

However,the store-specific ones can be worth your while too: probably everybody knows what a good deal it is to get 5% off with your Target credit card (soon to be reissued as a MasterCard chip and pin, incidentally). And Frequent Miler is on the record as a fan of the Kohl’s card.

So consider a retailer card for your next round of apps. If you’re curious, here’s a list of Comenity cards and here’s a list of GE Money cards to consider, not that there aren’t other issuers as well.

Sure, it hurts to get a hard pull and a new account on your credit file but modest payouts and great promotions over a long period of time can more than make up for the lack of a sign-up bonus. Though I’ll admit to having somewhat different interests than a lot of you reading this: while many of you are looking for great trips on the cheap, I’m looking to save money for a family of six, whether that’s for cheap family trips or by reducing the cost of things I was going to purchase anyway. There is no one-size-fits all approach to credit cards, so it pays to think about what’s best for you and your particular situation.

CREDIT WHERE CREDIT IS DUE: I hadn’t realized this until I read the latest from George, but my pal Chasing The Points was the first one with the news about the Staples deal, so props to him on this one. I first read about it on Mommy Points, who said she saw it on Twitter but couldn’t remember the source. I’ve found myself in similar situations as a blogger, so I’ll cut her some slack there.

And while I’m discussing the excellence of Team Saverocity, my pal Matt has a nice post up: Finding, Not Killing, The Next Big Thing. It’s worth your time if you’re into this hobby at all, as he gives a good overview of who knows what in our area of the blogosphere.

And finally, to follow up on yesterday’s post, Andy at Lazy Travelers pointed out there’s currently a deal for a $19 per day all-inclusive resort in the Dominican Republic. Thanks Andy!

Wells Fargo launches the Propel 365 Amex and the Propel World Amex

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This has been in the works since last year, but Wells Fargo’s new Amex credit cards are now live: the Propel 365 and the Propel World. Here’s the rundown:

PROPEL 365

Here are the key bullet points from Wells:

  • 3X points at U.S. Gas Stations, 2X points at U.S. Restaurants, and 1X point on all other net purchases (purchases minus returns/credits).
  • You will earn an annual bonus of 10%, 25% or 50% more on non-bonus rewards points if you maintain a qualifying consumer Wells Fargo Checking or Savings Account, or PMA® Package.
  • Your points do not expire, and there is no cap on how much you can earn.
  • $0 introductory annual fee for the first year and only $45 after that.
  • Earn 20,000 bonus points when you spend $3,000 in net purchases (purchases minus returns/credits) in the first 3 months.

It sounds a little like Bank of America’s 3-2-1 flagship card, except the bonus categories are uncapped, plus there are relationship bonuses. You would need $25,000 $250,000 in deposit account balances to qualify for the 50% relationship bonus. Note that the relationship bonuses are paid out annually.

I don’t see anything here that really wows me. I’m sure some folks could make good use of 4.5% back on gasoline purchases, but then you can get 5% back with PenFed’s card. (EDIT: the bonus points are on non-bonus earnings, so that makes this 3.5% on gas, not 4.5%.) You can also get 3% back at restaurants with the no-fee AARP credit card.

In basketball there’s the phenomenon of the “tweener“, which is somebody who’s kind of in between two different positions and doesn’t really fit at either. This card strikes me as a tweener: not quite a no-annual-fee workhorse, but not quite good enough to warrant paying an annual fee. I don’t see any compelling reason to get it.

PROPEL WORLD

This one is more upscale; Wells seems to have the Amex Gold in its sights. The details:

  • No foreign currency conversion fees
  • Up to $100 per year in reimbursements toward incidental airline charges
  • Complimentary room upgrades and more from the Luxury Hotel Program
  • 3X points on Airlines, 2X points on Hotels, 1X point on all other net purchases (purchases minus returns/credits)
  • $0 Introductory Annual Fee for the first year, $175 for each year after that.
  • Earn 40,000 bonus points when you spend $3,000 in net purchases (purchases minus returns/credits) in the first 3 months

I don’t know what the luxury hotel program is, but at 40,000 points it might be worth a look. Beyond that, I can’t see paying $175 per year for this thing.

Those are my first impressions. Thoughts?

Can you get two Avios per dollar with your Fidelity Amex?

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Milenomics had another nice post on the Fidelity Amex card, this one on how to redeem the points earned from that card for travel at a favorable rate. It’s an obscure, unadvertised feature of that card that lets you get more than 2% back on your spending, and the article is worth a look if you’re into wringing every possible cent of value from your credit card rewards.

The post reminded me of something I’d meant to investigate a while ago but then forgot about: this Flyertalk thread, where somebody alludes to being able to exchange WorldPoints for British Airways Avios. Somebody asked if it was still possible and the question went unaswered, so let’s try to figure this out.

One commenter on that thread wrote:

If you have both a Merrill+ VISA and an Accolades Amex you can transfer WorldPoints to the Merrill points which can be redeemed for BA miles in blocks of 5,000.

The Merrill+ Visa can be found here. If you click on the program information here and scroll down, you’ll see this:

31. British Airways Avios Miles Exchange
Redeem Merrill Points for Avios
Offer valid through December 31, 2013. You must have a valid British Airways Executive Club account to convert Merrill Points into Avios. Merrill Points may be converted in increments of 5,000. Flights booked using Avios cannot be used to accrue Merrill Points or additional Avios under the British Airways Executive Club. All flights are subject to availability at time of booking. All redemptions are considered final and Avios cannot be converted back to Merrill Points. Please allow up to six weeks for Merrill Points converted to Avios to appear in your British Airways Executive Club account…

So it seems you can at least exchange Merrill points for Avios. I don’t know what the requirements are for getting the Merril+ card, and I can’t really tell from the website. Presumably the card is aimed at a more upscale demographic, though I can’t say how upscale, what sort of assets or annual fees are involved, or anything else. The rewards on this card are pretty lame, though: one point per dollar, period.

So what does this have to do with the Fidelity Amex and why was that Flyertalk commenter mentioning the Accolades card? Also from the Merril+ program info page:

5. Unless otherwise specified, Merrill Points may not be transferred to, or combined with, any Merrill Lynch or non-Merrill Lynch rewards program, including but not limited to the WorldPoints® rewards program. Only qualifying Merrill Lynch cardholders who also have a Merrill Accolades® American Express® Card may redeem WorldPoints® points for Merrill Points, and vice versa, to the extent permitted by the cards respective terms and conditions.

So apparently it works like this: WorldPoints –> Merrill Points –> Avios, but only if you have an Accolades Amex. If you could do that, you could get 2 Avios per dollar, since as Milenomics pointed out, your Fidelity Amex earnings are actually a form of WorldPoints.

Unfortunately, I’m not sure how easy it is to get an Accolades card. This card was launched several years ago as B of A’s high-end credit card but apparently was never very popular. According to a year-old article from Business Insider,

The Merrill Accolades American Express Card, formerly the Bank of America Accolades American Express card, is available only to select clients of the Merrill Lynch Wealth Management division, a part of Bank of America.

The Merrill Accolades card boasts a black design, with the customary Merrill Lynch bull logo. However, the card comes with a relatively low annual fee of just $295, cheaper than many high-tier airline credit cards.

I can’t even find an Accolades application page. Google turns one up, but the link just takes you to the home page for Merrill’s credit cards. So maybe it’s something you have to call up ML to inquire about, or maybe they’ve discontinued it. The latter possibility wouldn’t surprise me, since B of A is tweaking its product offerings yet again for this segment–see my post from a couple of months ago about the credit card possibilities that may result from this change.

Bottom line: yes, it’s theoretically possible to get Avios with your Fidelity Amex. Is it practically possible for those of you reading this who don’t already have the required cards? That, I’m not so sure about.

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Saverocity is Journalistic in Nature, please obtain Professional Representation prior to attempting anything discussed herein. Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.