Chase is relaunching its AARP card! It’s actually a decent offer, but we’ll get to the details in a moment. First, you whippersnappers need a history lesson.
A little over two years ago, in one of the great moments of credit card history, Chase launched its AARP credit card. What made this a great moment was that Chase offered 5% unlimited cash back on all purchases for the first six months.
What happened next was a lot of people got unlimited 5% cash back on all their purchases for the next six months. And if you’re surprised by that turn of events, then congratulations–you’ve got what it takes to be a Chase credit card executive! Note that this was the same time that the famous (or infamous) U.S. Mint promotion was going on.
Chase’s response was to double down on ineptitude by taking a heavy-handed approach to people who had earned high amounts of “unlimited” cash back. They decreed after the fact that some people had actually earned too much “unlimited” cash back and couldn’t keep their rewards, and Chase also cancelled cards and in some cases blacklisted people.
Enough people raised enough of a stink about this that Chase eventually relented. Chase’s reneging on the “unlimited” marketing hook is reminiscent of Homer Simpson suing the “all you can eat” restaurant for not letting him have all he could eat. Plus they picked a fight with the credit card holders of one of the most powerful political organizations in the country. It really was a massive train wreck for Chase from start to finish, and there’s an epic Fatwallet thread covering the whole mess.
Which brings us to Chase’s announcement yesterday about its new AARP card product. The 3% travel bonus is gone, and in its place we get uncapped 3% on restaurants and gas stations.
New applicants also get a $100 bonus. If you already have an AARP card (which we do–the fact that it wasn’t cancelled by Chase should indicate we’re not as hard core as some other folks), you can convert it to the new AARP product by calling customer service, or you can leave the old reward structure in place.
Keep in mind that while you do need an AARP number to get the credit card, you do not need to be old or retired to join the AARP. We’re employed and in our thirties. You just need $16 to pay the membership fee, and you won’t need to renew after that, although we can tell you from personal experience that they will send you at least $16 worth of junk mail per year asking you to renew.
Credit where credit is due: this strikes us as a pretty savvy offer by Chase. No other card offers 3% or higher on both restaurants and gas, and those category bonuses are probably a good way to keep the card in a prominent place in their customers’ wallets. Sure, you can get 5% on gas or restaurants with other cards, but no other card combines decent bonuses on both categories. And keep in mind that those of us who seek out high credit card rewards are the tail end of the bell curve: most people don’t like to mess with this stuff, so a simple value proposition like this should do well with their target audience.
Whether it attracts manufactured spend fanboys is another matter. 3% isn’t great, but it’s not bad either. We’re curious to see how long Chase sticks with this offer.
It’s worth noting that Citi is currently involved in attempting to recreate the AARP debacle on their own 5X ThankYou Preferred offer. Apparently Chase made it look like so much fun to start firing customers for accruing too many ‘unlimited’ rewards.
Yes! The timing of Chase’s AARP re-launch and Citi’s TYP crackdown is impeccable.
The app for this card doesn’t require an AARP number… Do you ‘have’ to join to get this card?
Not sure. My guess would be no, but that’s just a guess.