Wells Fargo has announced a new rewards structure for its Propel American Express credit card, rewarding cardholders who spend their money on dining, travel, and streaming services.
As its corporate blog states, this is the scandal-ridden company's "latest move to recommit to customers and provide products with more value." The company has had many issues and image problems in recent years, so it's working on strengthening its products. It calls the new Propel card, "one of the top no-annual-fee cards in the industry."
The card offers a three-one tiered points structure. Cardholders get three points per dollar spent on three major categories: Eating out and ordering in; travel and transit; and streaming services. That corresponds to spending at restaurants and other eating places, airlines, car rentals, hotels, homestays, cruises, gas stations, ride sharing, railways, parking, taxis and tolls. The streaming services initially covered include Apple Music, Hulu, Netflix, Pandora, Sirius XM Radio and Spotify Premium. For all other purchases, cardholders earn one point per dollar spent.
There's also an initial new cardholder bonus, where you can earn 30,000 bonus points for spending $3,000 within the first three months you have the card open. This is equivalent to $300, as points are worth a penny each.
The card also comes with the American Express benefit that allows them to have access to presale tickets for concerts, events and theater shows; as well as other discounts.
"We are listening to consumers to better understand and serve their needs holistically, and have heard directly from them on what they want most in a credit card. Based on that feedback, we are excited to offer one of the richest rewards credit cards in the industry, for no annual fee. With triple points on most of what consumers do every day, the new Propel Card complements their lifestyles – whether they are commuting to work or planning a summer vacation; whether they’re downloading a favorite TV series to binge watch or having dinner out with friends," said Bev Anderson, head of Wells Fargo Cards and Retail Services, in a statement.
Cardholders can spend their points in Wells Fargo's Go Far Rewards Program on travel, merchandise, gift cards and charitable donations. You can also use points to pay down an existing Wells Fargo loan or mortgage, get cash at a Wells Fargo ATM or convert them to a cash deposit into a Wells Fargo checking or savings account.
The card has a one-year introductory 0% APR on purchases and balance transfers, which increases to a 14.24% to 26.74% variable APR, based on your creditworthiness. Cash advances have a variable APR of 25.74% to 27.74%.
One of the more attractive elements of this card is the fact that you can really rack up the points if you're prone to spending a lot in those particular categories. The fact that the travel rewards extend to ride sharing, parking and transit is really appealing to someone who lives in a city and often makes those types of purchases. And it's got no annual fee, which isn't something you see a lot of in a tiered rewards card.
On the other hand, the APR does err to the high side of the spectrum, so if you don't have the best credit score and are prone to carrying a balance, those fees might cancel out the big rewards you earn.
Wells Fargo and American Express brought out the original Propel card in 2013. "When we launched our partnership with Wells Fargo five years ago, our goal was to leverage our industry-leading networks to help our customers succeed financially through distinctive and compelling offerings," said William Stredwick, senior vice president in the global network partnerships division of American Express, on Wells Fargo's blog.
Applications for the card are available this month.
