Limited rewards
You won’t earn much with this low-earning rewards card. The DCU Visa Platinum Rewards card offers just 1 point for every dollar you spend, which is about average for a small credit union card, but disappointing for a travel card. Unless you’re an especially heavy spender, you’ll just barely earn enough rewards to cash in a few gift cards every year.
By contrast, to redeem points for a more expensive travel purchase – such as a $400 airline ticket – you’d have to regularly spend thousands of dollars a month just to have a chance at a free trip in your card’s first or second year. If you can afford to spend that much each month, you’re better off picking a card that offers substantially more points. Unlike many travel cards, the DCU card doesn’t offer a sign-up bonus.
Pricey fees
The M&T Visa also charges some of the highest travel booking fees on the market. Cardholders are charged $31 to book travel online and $35 to book travel by phone. By contrast, most rewards cards that charge a booking fee only charge $15 to $25 to book rewards-funded travel. Meanwhile, many cards don’t charge a booking fee at all.
Like most rewards credit cards, the M&T Visa also makes you go through the rewards program to book rewards-funded travel, so you don’t have the flexibility to find better deals by booking through outside travel sites or directly with airlines. With such a steep travel booking fee and limited options for redemption, you are likely better off redeeming points for something unrelated to travel, such as gift cards or merchandise.
Competitive APR
That said, the M&T Visa card does charge a relatively low APR. So if you tend to carry a balance, this may still be a smarter choice than a pricier card with more extensive rewards and benefits. Cardholders with the best credit scores are charged a minimum APR of just 11.5 percent, which is well below average for a rewards credit card. The typical rewards card charges a minimum APR of 15.26 percent. Meanwhile, the most M&T cardholders with lower scores can be charged is a maximum APR of just 18 percent.
Few perks
The M&T Visa doesn’t offer a lot of extra perks. However, it does offer standard credit card perks such as car rental insurance and extended warranty. It also offers additional travel coverage through Visa and late check-in at participating hotels.
Reasons to get it:
- You want a low-rate card with some rewards.
- You prefer to carry a card from a credit union rather than a large bank.
- You plan to redeem points for gift cards or other rewards purchases rather than travel.
How to use it:
- To maximize rewards earnings, use the credit card rather than a debit card for everyday purchases – such as gas and groceries – and pay off those purchases at the end of the month.
- Don’t bother redeeming points for travel. You’ll get more value out of rewards earnings by redeeming points for gift cards, merchandise, donations or experiences.
- Use the card for travel purchases, such as car rentals and hotel stays, to take advantage of the card’s travel benefits.
The post DCU Visa Platinum Rewards Credit Card Review appeared first on Reviews.