Card Review: US Bank Cash+ Visa
As more people, especially younger generations, drift away from using cash for transactions, the world of credit cards is becoming an increasingly competitive market every day. Credit cards are products that financial institutions promote and issue, and in order to capture their audiences, they need to constantly update and fine-tune the various perks and physical technologies associated with their offerings. However, these days it is difficult to say one credit card is vastly unique from another. Think back to when Apple and Samsung first launched their respective products: They both started by offering distinctive technologies and upgrades, but over the years, they began to meld together until the only substantial difference became their operating systems. The intangibles that they do promote, including camera quality, audio, and touch screen are more or less the same and difficult to distinguish with the average human senses. This same trend has been occurring with credit cards, where issuers are all generally following the same patterns and unique outliers rarely exist.
Almost all premium credit cards offer the same benefits among competitors, such as Priority Pass Lounge access and TSA Pre/Global Entry reimbursement.
For example, almost all premium travel cards will offer identical Priority Pass Lounge access, TSA Pre/Global Entry application fee reimbursement, free ShopRunner membership, airline credits, and dining credits. No annual fee card earnings are often segmented into either 1-2% cashback on all purchases or 5% on rotating categories. But in the midst of similitude, the U.S. Bank Cash+ Visa managed to establish itself as a unique product by offering customizable 5% cashback categories.
Current Sign-up Bonus
Because this is a no annual fee card, the signup bonus is not spectacular. The current bonus offers $200 after spending $500 in three months. It’s better than no signup bonus or the Apple Card’s $50 statement credit at Walgreens, and identical to the Wells Fargo Propel American Express and Chase Freedom Unlimited’s bonus earnings.
While the $200 signup bonus is not significant, it is probably the highest bonus you will see for no annual fee credit cards. Photo credit: www.usbank.com
How does its cashback work?
The U.S. Bank Cash+ is a 5% cashback card with rotating categories. The Chase Freedom and Discover it Cash Back are also popular cashback cards with 5% rotating categories that the issuers predetermine. Your 5% earnings are capped at $1,500 in purchases per quarter within the designated categories; anything beyond that threshold will earn the normal 1% back.
The U.S. Bank Cash+ takes a different approach from other typical 5% rotating cashback products. Photo credit: www.usbank.com
In the case of the Cash+ Visa, cardholders can select two of 12 merchant categories each quarter for which they can earn 5% back. The spending threshold is also higher than other rotating counterparts; you can earn 5% cashback up to $2,000 in spending in the two categories you select. After meeting the limit, you’ll earn the standard 1% back on said categories. The 12 merchant categories are:
TV, Internet & Streaming Services
Home Utilities
Ground Transportation
Select Clothing Stores
Cell Phone Providers
Electronics Stores
Gyms/Fitness Centers
Fast Food
Sporting Goods Stores
Department Stores
Furniture Stores
Movie Theaters
On top of that, members can choose one everyday category from gas stations, grocery stores, or restaurants and earn 2% back from those purchases. All other purchases earn 1% cashback.
The Cash Plus+ Visa from U.S. Bank takes a different approach from other typical 5% cashback products, with a vast array of categories to cater to your spending habits. Photo credit: www.usbank.com
There are a few recommendations to maximize one’s earnings from this type of cashback program. First, make sure your choice of bonus categories actually covers the merchants with whom you frequently shop. For instance, if you were to pick department stores as one of your 5% categories, be aware that superstores such as Walmart and Target do not fall under this criteria. The same applies to the clothing store category; there are only a small handful of stores for which this elevated rate applies.
Keep in mind that the clothing category doesn’t encompass all clothing merchants. Photo credit: www.usbank.com
Second, the fast-food category is selective. Typical chains like Domino’s and McDonald’s fall under the category, as well as healthier joints like Chipotle. I recommend trying out your favorite spots and see if each merchant codes appropriately. If you’d like to see all the qualifying merchants under each category, check the official U.S. Bank page. Lastly, if you want to change your bonus categories, you can do so until five days before the first day of the new quarter. After this has passed, your bonus categories are locked until the next quarter rolls around.
Who Should Get This Card?
As you can see, the U.S. Bank Cash+ gives you the freedom of selecting your own 5% cashback categories to maximize your spending habits. However, compared to the Chase Freedom and Discover it, which offers quarterly bonuses for common grocery or Amazon purchases, the Cash+ card’s 5% categories are considerably weaker. Most people don’t spend thousands of dollars at fast-food restaurants and movie theaters or on cell phone bills. However, that doesn’t mean the card is impractical. I can see ground transportation and internet & streaming services being useful, especially for young adults living in big metropolitan areas. Overall, I recommend assessing your monthly budget profile and supplementing this card with other cashback offerings that offer more extensive coverage.
Use the Cash+ Visa to capture and expand your cashback options!
Summary
U.S. Bank is the fifth-largest bank in the U.S. They don’t have nearly the same signature credit card portfolio as American Express or Chase, but it is always refreshing to see big players trying new approaches to reinvent a saturated market. The U.S. Bank Cash+ Visa is a unique cashback credit card that allows you to choose your own 5% rotating cash back categories to suit your spending priorities. Although the bonus categories are not as considerable as those of its Chase and Discover counterparts, the Cash+ Visa is a great option to have on top of other strong cashback cards so you can stay adaptive for purchases where you’d otherwise earn only 1% back.
