Card Review: U.S. Bank Altitude Reserve
A few weeks ago, I reviewed the U.S. Bank Cash+ Visa, which is a cashback card with 5% “rotating” categories. If the Cash+ Visa is considered U.S. Bank’s entry-level offering, their most premium tier is the Altitude Reserve, often compared to the Chase Sapphire Reserve (CSR) or the Citi Prestige. In 2020, the CSR and Prestige’s annual fees increased from $450 to $550 and $595 respectively, making the Altitude Reserve’s $400 overhead an even more appealing option for cost-conscious customers. Let’s take a look at what this underrated card offers and why I think it could be a better option than other premium travel cards.
U.S. Bank Application Rule
Before anyone jumps the gun and applies, the Altitude Reserve may be a little more difficult to be approved for some compared to its Chase and Citi counterparts. First, you need to have an existing relationship with U.S. Bank to be in consideration for approval. Using any of their products, such as a simple checking account or entry-level credit card, will suffice. Furthermore, U.S. Bank credit card customers are not charged any fees for maintaining a checking account, adding to the reasons to create a U.S. Bank portfolio.
Be aware of strict application rules when applying for the U.S. Bank Altitude Reserve. Photo credit: www.usbank.com
Even if you do have a U.S. Bank account of some sort, they can still be quite strict with approving credit card applications. Though they don’t have a “published” rule like Chase’s 5/24, Bank of America’s 2/3/4, or Citi’s 2/60, data points suggest that having a clean 12-month period with no recently opened accounts can greatly increase the chances of being approved. However, as we all know in the credit card community, your mileage may vary, depending on your credit portfolio.
There is no published rule for U.S. Bank credit card applications, only the well known fact that the company can be sensitive to inquiries.
Multipliers & Signup Bonus: Worth up to $750
New cardmembers who spend $4,500 in the first 90 days of account opening will earn 50,000 points. By using the U.S. Bank travel portal, they can elevate the value of each point to 1.5 cents, making the 50,000 bonus worth up to $750. The Altitude Reserve earns 3X back on all travel purchases; eligible categories include airfare, hotels, car rentals, public transportation, parking, tolls, and even cruise lines. The unique points-earning opportunity comes from using mobile payments such as Apple Pay, Samsung Pay, Google Pay, and Android Pay, which yield 3X back. All the other non-mobile and non-travel purchases will earn 1X back.
3X points on mobile payments can significantly increase the potential for serious bonus earnings, especially for avid shoppers.
Payment platforms in the U.S. have slowly been transitioning to more mobile-oriented, contactless options. With the ongoing battle against coronavirus, the push towards digital payments has only become stronger. The Altitude Reserve’s mobile payment multiplier is a great way to earn additional bonus miles for the categories you’d otherwise miss out on. For example, practically all major grocery stores, drugstores, department stores, office supply stores, and home improvement stores offer mobile payment. On top of that, superstores like Costco, Walmart, and Target, which have been traditionally excluded from earning multipliers, qualify for bonuses using the Altitude Reserve.
Annual Fee & Main Benefits
The Altitude Reserve carries a $400 annual fee; while still hefty, this sadly lands on the lower end of the premium credit card fee spectrum. One of the most valuable benefits of the card is an annual credit of $325 towards travel purchases. Unlike the Platinum Card from American Express (AMEX), this is a straightforward credit that can be used towards airfare, hotel, car rentals, public transportation, parking, tolls, and cruise lines, effectively lowering the annual fee to $75.
The travel credit is effortless to use since it covers almost anything travel related, including parking!
Another notable perk is a free dozen Gogo Inflight WiFi passes, valid for 12 months from the date of registration. Anyone running a small business or traveling for work who flies frequently knows that in-flight WiFi is a must-have, even though the spotty connections. Other complimentary benefits include $100 towards a TSA Pre/Global Entry application fee, 30% off Audi’s SilverCar rental service, and eight Priority Pass Lounge passes per year. Given that this is a premium travel card, it may be initially odd to see a limiter on Priority Pass access, but I’m totally fine with it. Priority Pass Lounges have become very congested in recent years, and it’s likely that cardmembers who are able to invest in a premium travel card like the Altitude Reserve may have another card or membership that offers unlimited Priority Pass visits.
Priority Pass visits can be especially handy for travelers looking to grab drinks or bites on a quick layover or pre-flight.
The Altitude Reserve is a Visa Infinite card, unlocking access to the Visa Infinite Concierge service. In my opinion, it’s not as good as the Centurion Concierge service from AMEX, but it is still a very professional and helpful service that can assist cardmembers with restaurant reservations and travel itineraries. This is especially resourceful for those planning to travel to a country that speaks a different language. I used a concierge service for my trip to Tokyo and visited some amazing restaurants without any hassle.
You can even arrange flowers to be delivered to your significant other by using the Visa Infinite concierge service!
Another great benefit to the card is that it offers primary rental car benefits. If an accident or damage occurs to your rental and it was paid with the Altitude Reserve, this coverage applies toward the credit card’s rental insurance first. If the damage or loss was not entirely covered by the credit card’s auto insurance, the remainder will apply to your personal policy.
Hopefully you won’t have to ever use the primary rental car benefit, but when you do use it, it can save you tons of money and headache.
The primary auto rental insurance really sets the Altitude Reserve apart from other premium travel cards, since the only other premium card with the same level of benefit is the Chase Sapphire Reserve. Even the Citi Prestige and AMEX Platinum only offer secondary insurance. Because I’m a consultant who rents a car every month for one to two weeks, this is a huge safety blanket for me should I ever get into any sort of auto trouble.
Limitations of the Altitude Reserve Card
Relatively Lower Points Value - The points you earn using the Altitude Reserve are not valued among the highest points currencies available, also forcing you to utilize their travel portal to milk the maximum value of 1.5 cents per point. Chase’s Ultimate Rewards (UR) points, AMEX’s Membership Rewards (MR) points, and Citi’s ThankYou points are valued at 1.8 to 2.0 cents per point. Furthermore, while they do all provide their own respective travel portals, cardmembers can unlock even higher points redemption values by maximizing deals through their transfer partners. Unfortunately, you won’t be able to get more than 1.5 cents per point with the Altitude Reserve card since this valuation is only honored if you use U.S. Bank’s travel portal. Moreover, when Waller’s Wallet performed a detailed analysis of the portal itself, he revealed that the prices were higher than usual, often lowering the value of these hard-earned bonus miles.
U.S. Bank points are valued at 1.5 cents per point, which is lower than those of other popular rewards programs such as Chase and AMEX.
Minimum Spend Thresholds - Points redemption towards car rental and hotel stays require cardmembers to spend a minimum amount in value. For car rentals, you need to spend at least $250 in points, while hotel stays require a $500 value minimum. I assume this stems from the agreements between U.S. Bank and car rental/hotel companies, but the inflexibility certainly does not benefit customers.
Tough Application Prerequisites - As mentioned previously, you need a pre-existing relationship with U.S. Bank to be approved for the Altitude Reserve. The relationship must be at least five business days old and you must have their checking account, savings account, or a credit card to establish the relationship. That being said, U.S. Bank does offer cards with great benefits if you want to build a portfolio with them. Check out my writeup of the Cash+ card to learn more about their entry-level offerings.
Be sure to establish a relationship with U.S. Bank before applying for the Altitude Reserve.
Summary
The Altitude Reserve is the most exclusive credit card offering from U.S. Bank. It’s an underrated card that simply lacks the same prominent market presence like its competitors such as the Platinum Card by AMEX or Chase Sapphire Reserve. It may not extend flashy perks like Centurion Lounge access and doesn’t grant automatic hotel status, but it offers straightforward, easily usable annual credit and amazing bonus points-earning opportunities through its 3X multiplier on mobile payment purchases. Potential cardholders need to establish a relationship with U.S. Bank at least a week before applying for the Altitude Reserve, and even then, it may be difficult to be approved since U.S. Bank tends to be more selective than other credit issuers. However, it’s worth the effort because the Altitude Reserve is a great all-in-one product and offers the potential to earn 3X back on most purchases.
