Card Review: Wells Fargo Propel AMEX
The no-annual-fee credit card market is becoming increasingly competitive. Budget spenders don’t want to shell out the money for a more premium rewards card, but still want to enjoy their perks or bonuses. From the perspective of major card issuers, it’s challenging to keep their offerings clear of an annual fee while introducing decent benefits to stand out among the competition. As a result, banks constantly have to revamp their no-fee cards so they can survive in the otherwise over-saturated pool of plastic. Among these institutions, Wells Fargo rose ahead of the pack with the introduction and subsequent revamp of the Propel American Express Card. Although it’s not perfect, it’s one of the best travel credit cards you can get right now without being tied to an annual fee.
Current Bonus: Worth Up to $350 (With a Catch)
New cardmembers can earn 20,000 Go Far Rewards points after spending $1,000 in the first 3 months. The 20,000 bonus points can be used towards a statement credit, travel rewards using Wells Fargo’s travel portal, or gift cards. Each Go Far Rewards point is worth 1 cent, making the current signup offer worth $200. However, the value can substantially increase if cardmembers also hold the Wells Fargo Visa Signature Card. The Visa Signature allows 50% more value when points are pooled together and redeemed for airfare using the travel portal, increasing the valuation to 1.5 cents per point. Moreover, if you spend more than $50,000 on the Wells Fargo Visa Signature, it grants an additional 25% increase in point valuation, making the current signup bonus worth up to $350. High spenders who don’t want multiple credit cards should look into Wells Fargo because the combination of this no-fee dynamic duo can return up to 5.25X Go Far Rewards points in almost every purchase.
The Propel Card can earn Go Far Rewards that can be redeemed at a higher rate if you’re a loyal member of the Wells Fargo ecosystem. Photo credit: www.wellsfargo.com
The Wells Fargo Propel Card by itself earns 3X back on all travel, including flights, hotels, car rentals, gas, and transit, as well as streaming services and dining (including takeout and delivery). Similar to Citi’s Premier Card, the definition of transit is as broad as it can be: Public transportation, tolls, parking, and more. The inclusion of streaming services is definitely a selling point for younger audiences, as it’s quite rare for no-annual-fee cards to offer such a perk. A recent survey showed that more than half of Americans are subscribed to at least one streaming service; I’m willing to bet young adults and millennials are subscribed to two or more. I’m currently a loyal subscriber to Netflix, Prime Video (Amazon Prime), and YouTube Premium, resulting in a recurring monthly expense of $38 that earns 114 points through the Propel. It’s unlikely that most everyday individuals spend more than $50 a month on subscriptions unless they manage family accounts, but it's still a distinctive benefit from other no-annual-fee products.
Most people are subscribed to at least one streaming service. Why not earn travel rewards on those monthly bills?
Annual Fee and Benefits
There is no annual fee for holding the Propel Card but it does come with a basic set of benefits. The Propel offers travel accident insurance, purchase protection, return protection, extended warranty, and lost luggage reimbursement. The card also provides secondary auto rental protection (meaning the claim will go through your primary insurance first) and cell phone protection when you use the card to pay for your cell phone bill. With a $25 deductible, the cell phone protection can reimburse you up to $600 per claim, although claims are limited to $1,200 per 12-month period. Though the plan does not cover lost phones, its deductible is the lowest among the plans offered by no-annual-fee credit cards.
With the Propel Card, you can fix your shattered iPhone screen for $25, as long as the claim is under $600 and you paid your phone bills through it.
Does the Propel Card Count Towards AMEX’s Maximum Card Limit?
Recently, Doctor of Credit reported that American Express is currently enforcing a new four-credit card rule. This specifically applies to the total number of personal and business AMEX cards and excludes charge cards. I hope this rule is a temporary measure to combat possible delinquencies resulting from COVID-19, but losing a spot in your credit card arsenal is still disheartening. Luckily, the Propel Card does not count towards any AMEX card counts, since it is issued by Wells Fargo, not American Express.
AMEX’s Worldwide Acceptance
I know some people are concerned with AMEX’s international acceptance. Traditionally speaking, AMEX’s acceptance rate by small businesses, especially overseas, has been lower than that of Visa or MasterCard primarily due to its higher merchant processing fees. However, AMEX has been allocating lots of resources to build their relationship with businesses (i.e. Small Business Saturday) and with a growing number of cardmembers, their international presence has been rising every year. Nonetheless, it is always a good idea to pack a backup Visa or MasterCard in case your AMEX is not accepted.
I didn’t have problems using my AMEX card in Tokyo but have heard stories of tourists overseas being rejected by local businesses.
Summary
The no-annual-fee card market is overly saturated and can be difficult to navigate to find a decent offering that stands out. The Wells Fargo Propel American Express Card not only earns 3X Go Far Rewards on broad categories such as flights, hotels, gas, transit, dining, and streaming services but can also significantly yield more return if a cardmember is in the Wells Fargo ecosystem. As a travel credit card, you may face a few instances when the card isn’t accepted by some merchants, but due to AMEX’s growing presence, it seems likely you’ll encounter less of these rejections with every passing year. If you’re looking for a no-frill travel credit card that can cover your everyday spending, you should seriously consider the Propel Card.
