US Bank Shopper Cash Rewards Card | Should You Get It?

[@RJFinancial]

Always like to see other opinions on cards. I've watch a few including yours and think the best way to sum this up - it's a card for the normal folk. The average person is going to see 6x at their favorite store + $0 fee in year one and be happy. That on top of USB kinda hates people like us, I'd say they accomplished their goal. To your point, the math goes in favor of 5x cards. Which is some what ironic as USB has the cash + themselves. The illusion of the card will captivate their target audience.

[@TheCreditFrog]

Hey RJ! Thanks so much for stopping by my channel!! I completely agree with you about US Bank's target market for this card. It's definitely not the credit card enthusiast; it's more towards people who love retail shopping. They gave this card a 1.5% everything category for this reason. I agree that if US Bank wants to become competitive with banks like Chase, AMEX, and now Capital One, they need to pay to play, literally, and offer cards that are more valuable to us that like to maximize value.

[@mitchell.9632]

Guess the factor would be if their car and hotel reservations if it was group rate and discounted plus 5.5% back though some portals have been known to go the other way and inflate their booking costs. Their cap is too low and the annual fee is too high to make this make sense or cents. Just said this on your channel RJ and good to see Stan doing the math here.

[@TheCreditFrog]

That’s true. I’m not too familiar with the US Bank travel portal so we’ll have to see if it’s a true portal or if the prices are inflated.

[@isao_the_2nd]

@@TheCreditFrog I gotta be honest. Citi's Costco Visa card now has a serious competitor

[@TheCreditFrog]

@@isao_the_2nd It’s true, this card could be a good card for that and it’s separate from the 6% cap which is pretty cool!

[@thecreditcardmd]

Great analysis, Stanley! I’m happy to see I’m not the only one who shops a little too much on Amazon. I could see this card being a great target and Walmart exclusive card since we already have the 5% Amazon credit card. Definitely thinking about getting his car just for your one, but absolutely doesn’t make sense in your two and beyond 😅

[@TheCreditFrog]

Thanks Yamah! Yeah, I actually didn't realize I spent that much at Amazon so now I'm actively trying to cut back, haha! I think you're right that Walmart shoppers may benefit greatly from this card, especially if they do a lot of their shopping in-store. It could even be a nice grocery card if that person gets their groceries at Walmart as well. Other than that fringe case, though, I agree, not a great long-term situation.

[@TH-TravelingTales]

Great video Stan. Remember you have to be Prime member which cost $139/year to get 5% back on Amazon Prime card. This new US bank credit card could be great option for Non Prime member to get 6% back. Keep up the good work.

[@TheCreditFrog]

Thanks Tanjim! You're totally right - thanks for pointing that out! Yeah, you'd probably get a little better rewards then on the US Bank card comparatively, but yes, you should definitely take into account the Prime annual fee into the calculations to make sure the math works out for you.

[@mikedevan2411]

This card is going to be "one and done" for the type of people who consume this type of content (credit card). It will be interesting to see if low application, or high closures after 1 year, force change.

[@TheCreditFrog]

Definitely agree with you Mike! Since there is no annual fee the first year, I think everyone can benefit! But after that, probably not so much! In any case, it does set a new precedent for new credit card offerings from other issuers!

[@OfficialEricGao]

Great spending breakdown Stan! Honestly, everyone should be doing this when comparing different cards just to see if your lifestyle can maximize a card's potential, especially if it comes with an annual fee.

[@TheCreditFrog]

Definitely Eric! I also think it’s a fun exercise to see how you can cut back on your spending to save more. I know I will consciously watching my spending at Apple, Best Buy, and Amazon from now on haha!

[@joshua.butler]

Loved your personal spending breakdown. It's definitely a great exercise to do!

[@TheCreditFrog]

Thanks I just wanted to make this video more personal as well!

[@OakandIV]

Great breakdown as always, Stan. Enjoyed the video. If I did not already have 5% or 2% cards for all of the retailers I currently use, I might grab this. Particularly if I were trying to stay under 5/24 for a while. And grabbing this, keeping it for three or four years, then product switching to something with no annual fee might be a winning strategy. However, for me personally, I do get at least 5% cash back everyplace this would give six that I actually shop. And at least 2% or two MR points every place that this would give 3%. I am also trying to hold off on new cards right now, in the hopes of grabbing a few more chase cards starting next year. So, despite the fact that it is obviously a pretty good one card set up, unfortunately it is not a good card for me. That said, for somebody who is looking for a one or two card set up, I think this is really a great choice. Particularly for low spenders. Throw in a simple all in one travel card and someone who did not want to juggle a lot of cards could be happy for years with that two card set up.

[@TheCreditFrog]

Thanks Robert! Yeah, it looks like you've really analyzed your spending patterns and have maximized with multiple 5% and 2% cards. I definitely agree that this card could make it simple for a lot of people, especially with that 1.5% cash back for everything else, and tbh, I think that is US Bank's ultimate target market, not really us credit card enthusiasts. Fortunately, like most credit cards, year 1 will be a win, and it would also be a good way to see if the card fit in someone's setup before they renew in year two. Sort of like a try before you buy, haha!

[@joshua.butler]

It's the $1,500 cap PLUS the $95 AF that kills it for me. It would be lightyears better if they removed either of these two factors. The eligible retailers are definitely excellent, but this card just takes too much effort for the potential payoff. 🤷‍♂

[@TheCreditFrog]

I totally agree with you Josh! Honestly, the cap would be appropriate if there was no annual fee, but both of them together makes it tough to really get value from this card. Still think it's worth it for year 1 though!

[@ItsMeCJ]

Great breakdown Stan! I don’t think this would be a good fit for me either due to the annual fee and the fact that I don’t spend much money at any of those retailers consistently.

[@TheCreditFrog]

Thanks CJ! Yeah, I actively try not to spend any money at retail stores, and have made this a permanent habit in my life. Sadly, it doesn't to seem to have worked at Amazon though, haha 🤦‍♂️

[@YanLuo]

First year aside, I think this card is a long term keeper in two situations only: 1, you spend significantly at Walmart but not significantly more than 1500/quarter or 2. You shop at many of the these retailers that CHANGE from quarter to quarter AND you don’t already have their store card AND you can plan at beginning of the quarter accordingly. As someone who don’t mind having many digital credit/debit cards in my digital wallet, I personally think this card only outshines rewards+ for Amazon/target/Walmart, not even Apple/BESTBUY as you get 5% back at the wider electronic store category with rewards+. target red card debit card is good enough for unlimited 5% back, most people who spend close to the quarterly limit has prime hence can get 5% back unlimited at Amazon, which making Walmart the only appealing store to use this card at. Ps. I don’t see any extended warranty language mentioned in my rewards+ card so if that’s the same with this new card, it’s another deal breaker for any electronic purchases: 1 more year of warranty definitely beats 1% more in cash back in my opinion

[@TheCreditFrog]

That's a very thorough breakdown of the fringe use-cases for this card so thanks for sharing your thoughts! I definitely agree with your points, especially with point #1 since Walmart does not have a good 5% in-store credit card option, this card would definitely be a good choice for those frequent Walmart shoppers. I personally am not someone who likes having tons of digital credit/debit cards and prefer to figure out how to balance maximum value with simplicity, but if you have no issue, you definitely will be ahead value-wise! The point about the extended warranty is also valid, and I completely agree with that as well. I use my Platinum card for most expensive electronic or appliance purchases for that reason as well!

[@classickid324]

First off, great video! Keep it up! In my opinion, you should also take into account that the Amazon credit card requires amazon prime. It basically makes the card a $139 annual fee card. However, I would also add that $139 prime cost to USB card. So the outcome of your analysis is the same and I agree with you. I don’t know why USB compared their card to the prime card and not the normal card. I personally would have compared it to the Amazon card (non-prime) that gives 3%back because then both cards do not give you free shipping. The way USB compared it was 6% up to $1500 per quarter but $95 AF (no free shipping) VS Amazon prime 5% unlimited but $139 AF(with free shipping). The free shipping definitely out ways the $44 dollar difference. (Long term not a good card, but first year is justifiable.)

[@TheCreditFrog]

Thanks! Yeah, I forgot about the Amazon Prime annual fee, which does change things a little bit, but the overall outcome is the same as you mentioned. It's true, they probably could have made it look better if they compared the Amazon 3% card, but yes, the nuance between free shipping and no free shipping will depend on the person who cares about that, but I'm pretty sure in today's world, everyone expects fast-shipping and "free shipping" and would gladly pay a recurring fee for those options.

[@EW-cq6yv]

Excellent video! Your breakdown analysis is amazing and will give many the chance to see whether or not this card is worth it in the long run.

[@TheCreditFrog]

Thanks so much! Yeah, you really have to look closely at the card, and not just at the shiny 6% multiplier, otherwise you may end up losing on the value instead!

[@MattWelterOfficial]

Getting 6% back at Amazon, Walmart, etc. are definitely some great multipliers. However, despite the multipliers being high, the Cap on spending is a drawback like you mentioned, and I typically like to see some sort of credit to lower the effective fee, since there's plenty of solid no-annual fee cards that have solid multipliers as well. The $0 introductory fee helps though, and like you said with the sign-up bonus, everyone will still come ahead in Year 1. Regardless, just like you, I just don't think this Card is a good option for me long-term. Great video as always Stan!

[@TheCreditFrog]

Thanks Matt! Yeah, it's good to recognize whether a card is good for you or not. I know you target no-annual-fee keeper cards, and this card definitely would not be one of them. Still, if you're not worried about 5/24 and you want a solid retail card for 1 year, this card would definitely fit that description!

[@classickid324]

Especially when you consider the fact that the store cards/credit card are 1. Free and 2. Have no limit. The 1% difference is nothing. For example, Best Buy CC is 5% back (as store credit) or 0% financing. You buy a new $2000 TV and your Best Buy CC will give you $100, while this 6% card will only give you $97.50. (Just an FYI don’t get the Best Buy card Citi bank always randomly changes peoples limits and close the card if you don’t use it at least once a year. I used to work there and it happened a lot.)

[@TheCreditFrog]

@@classickid324 Good to know about the Best Buy Card! A lot of these store cards have little nuances that a lot us don't know about so thanks for sharing your experience!

[@AnthonyVenture]

Ahhh now I’m starting to reconsider. I think into 2023, the Lowe’s credit card would be more beneficial instead of this card as I may not use any of the other retailers… at least very often if at all hmm. Thanks for the breakdown Stan, great to see your specific spending breakdown too! And what DID you buy at Amazon? KZbin gear I’m guessing ha.

[@TheCreditFrog]

Thanks Tony! Hey, this card is still useful in year 1 so as long as you don't care about Chase 5/24, this would be a good card to have to get the extra cash back boost! Yeah, it was very eye opening when I did my own spending audit. I definitely spent a lot at Amazon because of KZbins - I would say most of what I spent in 2022 was for my channel, but I think I'm good now and have most of the long-term gear I expect to have. We'll see though!

[@jimmyjames6492]

Thanks for the great breakdown! Definitely not a card for me. Thanks for the info + video!

[@TheCreditFrog]

No problem Jimmy! Glad you enjoyed the video!

[@dajimm0360]

But with the Amazon you basically have to have Amazon prime to get the card and yearly fee is $140 compared to waved than $95 as well the other perks it has

[@TheCreditFrog]

Yes, that's true. I completely forgot to mention that Amazon Prime annual fee so thanks for pointing that out! That's my bad. I guess it's not directly an apples to apples comparison, but yes, that would turn the math a little more in favor towards the US Bank card, but regardless I still think that the US Bank card is questionable after year 1.

[@CesarJoel]

Great video, thanks for the info.👍

[@TheCreditFrog]

No problem Cesar! Glad you enjoyed it!

[@drrob001]

Great breakdown and video as usual

[@TheCreditFrog]

Thanks Robert! Glad you enjoyed the video!

[@werdwerdus]

I'm on the fence as I do most of my grocery and generic home shopping at Walmart. but $95 is going to be quite the hurdle for me personally

[@TheCreditFrog]

It sounds like you may be one of those exceptions to the rule where this card may be right for you. Couple of things to think about: Can you meet the SUB ($2,000 spend in 120 days)? Would you max out or get close to maxing out the $1,500 per quarter limit?If you can do both of these things, I think this card would work out great for you. This plus the no annual fee first year will help get you the cash back you need to continuously run this card at no cost to you, even though it has a $95 annual fee. Having said that, I'm not familiar with your financial situation so if you can't pay off credit cards in full and on time, definitely don't get this card, but the $95 wouldn't be charged until after 12 months so you have time to get the money if that worries you, but you should be able to use the sign-up bonus and 6% cash back categories to help fund it initially!

[@scottb_02]

Great Analysis, I’m on the fence! I have their Cash+ card, which I love for 5% off Utilities & cable/internet! So I’m already in their ecosystem.. with the sub and waived first year it’s essentially free for 3.5 years.. I do grocery shop at Walmart and use Amazon..🤔 decisions decisions 🎃

[@TheCreditFrog]

Thanks Scott! I think that you have to evaluate how you shop at Walmart and Amazon together. If you do a lot of shopping at Walmart in-store, including groceries, and can definitely meet max out $1,500 per quarter, I think this card would work great for you, especially since the AMEX BCP 6% grocery category wouldn't work at Walmart. But if you think, you'll probably shift away from Walmart, you're probably better off without it. You could also get it and take it for a test run for the first year though - you may like the card and still have the option to cancel in year 2 if it doesn't work out!

[@jimmyobando938]

Thank you Stanley 👏

[@TheCreditFrog]

You're welcome Jimmy 👋!

[@JBMediaGuy]

I've seen other reviews of this card and some have compared it to the Amazon Prime Card. Almost every reviewer will say the Prime card is no annual fee. THIS IS COMPLETELY WRONG. You have to be a prime member which costs $139 a year. So yeah, there is an annual fee. And it's way more than the $95. Now granted you get a lot more with Prime, but you still have to pay. So I have to disagree that the Prime card is no annual fee. Also, you left out that this card earns 1.5% cash back on everyday spend. So if you max out 6, 3 and the 1.5 ... You're definitely seeing good ROS for this card.

[@TheCreditFrog]

Yes, it's true that there's an annual fee for the Amazon Prime Card. I certainly overlooked that when I did the analysis, and you have a fair point. Sometimes it's easy to overlook this charge since Amazon Prime is so popular, but I appreciate you bringing up this point.

[@JBMediaGuy]

@@TheCreditFrog Totally understand. And as mentioned, you're not the first to overlook it either. I think because Prime offers so much, most subscribers consider the card a "benefit" like music or movies, but to me it's the same premise is an annual fee. You're paying for the right be a card holder. Keep up the great videos.

[@TheCreditFrog]

@@JBMediaGuy Very true! Thanks for the info Jeff and appreciate the support! 👍

[@CalbyNg]

I like the comparison to the Amazon card, since most people could prbly find EVERYTHING at Amazon. Didn't think about it, was thinking of more Target and Bestbuy; ofc, they don't actually have as much as Amazon's stock of stuff. Also didn't really much think about the cap, but yeah I guess it is pretty easy to reach. Interesting you found something at Anthropologie; when I go in I'm not sure what I'm looking at 😅 PS: Did we ever find out official if the card lights up?

[@TheCreditFrog]

Yeah, I wanted to do a comparison to a card that I know a lot of people would use. The cap is kind of what kills the card. I think having a cap or an annual fee would be reasonable, but having both just makes the card really hard to work with. Yeah, I personally don't shop at Anthropologie, but they can make nice gifts for those who like the store! Not sure if the card lights up, that certainly is the rumor, and we'd have to see it in the wild to see what's up!

[@CalbyNg]

@@TheCreditFrog Ah, I didn't think about gifts.

[@DoremonUCR]

I mean this card kind of makes the Amex Blue Cash Preferred obsolete.

[@TheCreditFrog]

I think that the AMEX BCP's 6% grocery category still reigns supreme since this card only has Target and Walmart (maybe Amazon) as grocery options. It depends on the use case really. If you shop for groceries at Walmart, I think this card is better than the BCP, but not sure if I would say it replaces the BCP. Ultimately, it comes down to how you spend your money, and that's why I think auditing your own expenses is the most important thing to see your spending habits to make the right decision on the right card for you!

[@pinakmiku4999]

So many negatives with this card. Half of the year discover and chase have 5% cashback on walmart and are no AF and remaining quarter you use paypal 5% with discover or chase depending how they do it. Amazon and Target has their own 5%. For electronic stores and gift stores just get the no AF US Bank cash + card which is an excellent card. Additionally this credit card will let you choose only 2 retailers per quarter instead of categories so that is a bummer and most importantly $95 AF simply kills this card!! This card would have been without AF. Only benefit I think is when you shop a lot in Costco/Sams club then this is an excellent card. Edit: Me personally shop groceries from Costco for around $200 per month for 2 person which is $2400 per year and this card would give us $144 cashback and when you deduct AF $95 then it comes down to $49 which is approx 2% cashback for spending $2400. I can achieve same with my BOA cash rewards card where I get 2% for wholesale club. Same applies whoever use costco citi card. If you shop more than $200 per month at costco go for it.

[@TheCreditFrog]

I completely agree with you! The annual fee really does make this card pretty questionable as a long term card, particularly because it also has those $1,500 caps. I think people who shop exclusively at Walmart in-store (groceries too) are probably the only people who would benefit the most from this card as Walmart only offers a 2% multiplier for in-store purchases. I think it’s smart of you to look at your own finances at Costco to see what works best. From your spend, there are definitely better cards for the job as you mentioned!

[@pinakmiku4999]

@@TheCreditFrog True! Even for walmart chase freedom flex has 5% cashback in one quarter. Discover used to have 5% on walmart in a quarter but they removed it this year. But yes Walmart and Costco purchases makes perfect sense for this card but need to make sure to get atleast above 2% after AF for breakeven. Otherwise flat 2% cashback cards would again kill this US bank card!

[@rolandostaelena]

wait if you’re comparing to amazon prime why didnt you add the $132 annual fee for amazon prime? you should have compared to the 3% amazon card if youre going to ignore the amazon annual fee or compare if fairly. kind of a big miss.

[@TheCreditFrog]

Yes, I realize that the Amazon Prime card has an "annual fee" as other commenters have mentioned. Some consider it to be a no annual fee card since they use Prime in their daily lives, so if you want to use the 3% card for your calculations, that's cool!

[@benrivera651]

I just got approved for the US Bank platinum card, but im not sure ill be replacing my capital one savor card with it...

[@TheCreditFrog]

Hi Ben! It looks like the USB Platinum card is a balance transfer card with no rewards. I think if you need to pay off credit card debt than this would be a good card for that, but the Savor card would be the better card to keep if you can handle its $95 annual fee since it has good multipliers.

[@benrivera651]

@@TheCreditFrog I blew it! I should have gone for this one,, does US Bank allow product changes????

[@TheCreditFrog]

@@benrivera651 I’m not sure, but you can call customer service and see what your options are.

[@peipei5202]

I don't think you could consider the Amazon Prime credit annual fee free. You have to purchase Amazon membership to get that card, hence it's not free.

[@TheCreditFrog]

Yeah I can see that. Definitely an oversight by me, but even with the Prime membership factored in this card isn’t worth it for a lot of people after year 1.

[@EvoX2004]

Wouldn’t it be an argument that it’s not a no annual fee card for the Prime Rewards card? It’s technically $139 for a Prime Membership to qualify for the card. So technically $161 vs $265?

[@TheCreditFrog]

Yeah, I forgot to mention the Amazon Prime annual fee so that’s my bad. Nevertheless, the math still works out such that year 1 is good value, but year 2 and beyond is questionable due to the annual fee and $1,500 caps

[@werdwerdus]

when comparing to Amazon 5% you also need to factor in the Amazon Prime yearly fee which is what, nearly $150 now?

[@TheCreditFrog]

Yes, definitely! A lot of people have commented that, and that was an oversight by me so my bad. Having said that, I think that it only marginally makes the US Bank better, but the $1,500 cap plus annual fee kind of kills the value of the card over the long term. Still good I’ll Year 1 though!

[@mitchell.9632]

Did you buy stuff in Q2 2021 for this channel at Best Buy?

[@TheCreditFrog]

I don’t think so, I only started buying stuff for the channel in Q4 2021.

[@shubham7jain]

If it has a downgrade path to no annual fee, then for first 1 or 2 year, this card is worth it. Any idea about the downgrade path?

[@TheCreditFrog]

That would be nice if there was a downgrade path! I'm actually not sure about the downgrade path, but you could probably call into US Bank customer service and ask. Not sure if they'd let you down grade into one of their no annual fee cards, but that would probably be a better option than canceling!

[@WhiteoutSnowy]

Target and wal mart online only to get 6% ? Or in store purchases counts ?

[@TheCreditFrog]

In-store purchases should count. That’s what makes this better than the Walmart card which only offers 2% cash back in-store.