One of the most common questions I receive is “what credit card should I open?” For the past few months the answer was simple; “The Chase Sapphire Reserve” I would say. At the time, the card came with a 100,000 point sign up bonus which was worth a minimum of $1,500 in travel. Sure the card came with a hefty $450 annual fee, but after $300 in travel credits. This means the effective annual fee is just $150. Essentially, maximizing the sign up bonus would pay for the card for 10 years! Sadly, Chase recently dropped the online offer to just 50,000. I still think the Chase Sapphire Reserve is a great card, but the decision is a little more difficult when I recently discovered the US Bank FlexPerks Gold card.
Enter US Bank FlexPerks Gold American Express
The FlexPerks Gold American Express from US Bank may be the one of the most underrated credit cards on the market today. There is hardly any publicity surrounding the card. The only reason I am writing this is because I stumbled upon the card when writing about cards that offer TSA PreCheck statement credits. After digging into the card a little more, it may be one of the best options for a casual traveler new to the world rewards credit cards.
US Bank FlexPerks Gold Benefits
For starters the card comes with just an $89 annual fee. At face value the benefits being offered significantly outweigh the cost. Highlighted card benefits are found below:
- Earning FlexPoints: Card holders earn 1 FlexPoint for all eligible net purchases charged to the card. Card holders also earn 2x FlexPoints for each eligible $1 spent on airfare and gas stations. Additionally, card holders earn 3x FlexPoints for each eligible $1 spent at restaurants.
- TSA PreCheck or Global Entry: Card holders receive an automatic statement credit toward TSA PreCheck or Global Entry application fees.
- Complimentary Boingo Wi-Fi Membership: Card holders have access to over 1 million boingo hotspots around the world.
- $25 Airline Allowance Per Award Flight: Card holders receive a $25 statement credit for incidental airline fees per redeemed award flight.
- No Foreign Transaction Fees: Card holders are not charged foreign transaction fees when making purchases abroad.
- Additional Benefits Offered By American Express: American Express also offers a range of travel and consumer protection benefits to all eligible card holders. For a complete listing, please visit this page.
- Sign Up Bonus: Eligible applicants can earn 20,000 FlexPoints after spending $2,000 in the first four months of account opening.
Benefits Analysis
Bonus Points: One of the issues I often find with rewards credit cards is the lack of variety in bonus points earning categories. Some cards limit your bonus point earning to just airfare and do not offer bonus points for gas purchases. Others may offer broader categories, but only at a 2x earning rate. The FlexPerks Gold offers a fairly diverse group of bonus categories. This card would be ideal for anyone who typically spends on restaurants, gas stations, and airfare, but notably “Hotels” are missing from the bonus points earning list. Likewise, this card would not be a great option for anyone who mostly spends at grocery stores. Overall, this card offers a fairly well-rounded group of bonus categories.
TSA PreCheck & Global Entry Statement Credit: Although this is a very common perk these days, I can’t think of any other cards that offer this perk with such a low annual fee. Using this benefit will help to offset the initial annual fee.
Sign Up Bonus: Although the sign up bonus is fairly light, so are the requirements to earn it. This card may be perfect for anyone who does not spend quite enough each month to qualify for larger sign up bonuses from competitors which are typically around 50,000 points after spending $4,000 in the first 3 months.
$25 Airline Credit: This perk is one of the most unique perks I have ever come across. Basically each time you book an award flight using FlexPoints, you will receive an automatic statement for incidental charges (such as baggage fees) with that airline. Depending on how many award flights you take, this benefit could make a serious dent in the $89 annual fee.
What Are FlexPoints Worth and How To Use Them?
I try to avoid putting any sort of official nominal value on reward currencies because everyone uses reward points differently. In generally, I value flexible currencies (Ultimate Rewards) at $0.015/point and fixed currencies (AAdvantage Miles) at $0.01/point. FlexPoints however are a little trickier to nail down. FlexPoints act similar to a traditional cash back card. The best comparison would be to Chase Freedom Points. They aren’t true cash back, but they aren’t truly a fully flexible reward point either. Below are a few ways to use FlexPoints in the US Bank FlexPerks rewards program.
Cash Back / Gift Cards / Merchandise
FlexPerks members typically use FlexPoints as cash back to offset charges. The process is very simple and works like any other traditional cash back card. When members use FlexPoints to offset regular charges they will receive exactly $0.01/point in value. The same is true when purchasing gift cards or merchandise from the FlexPerks portal. As with most credit cards rewards programs, these are the worst way to use rewards points. I can’t tell you how many times I hear of people using rewards points to pay for merchandise at terrible redemption rates. PSA: Don’t Do It!
Annual Fee Offset
A decent use of FlexPoints could be when paying off the annual fee. US Bank lets card holders apply FlexPoints to offset their annual fee at a rate of $0.14/point. There is a way to get even more value out of FlexPoints, but overall this isn’t a terrible option.
Airfare (MAXIMUM VALUE)
This is where FlexPoints from FlexPerks really shine! US Bank has a fairly complicated chart of FlexPoints to dollars which allows card holders to get $0.02/point of value. The chart is tiered by dollar amount and is currently as follows:
- $0 – $400: 20,000 FlexPoints
- $401 – $600: 30,000 FlexPoints
- $601 – $800: 40,000 FlexPoints
- Continued…
As you can see above, the price of the ticket dictates the number of FlexPoints required, but the chart is tiered. In order to receive maximum value, the goal would be to only use FlexPoints to pay for tickets at the top of each range. Purchasing a ticket for as close to $400 as possible would help you earn $0.02/point which is a fairly good redemption rate. The best part, you are purchasing these tickets with cash, then applying points to pay for the charges. So, you also earn frequent flyer miles when traveling!
Premium Tickets
I think using the tired chart system is really interesting right now because of the rapid decline in premium cabin tickets. It is not uncommon to find domestic flight class tickets for at or below $400 these days. Keep in mind these tickets also earn additional EQDs and EQMs because of the higher fare class paid.
Final Thoughts
There may never be a one size fits all credit card, but as far as well-rounded credit cards go the US Bank FlexPerks Gold is a winner. It is rare for a card with such a low annual fee to offer the variety of bonus points categories offered and many of the other benefits currently offered. I also think the FlexPerks rewards program offers great value. Although the program may not be quite as simple as booking through the Ultimate Rewards portal, you are able to get more value out of your points with less effort than other programs. To really maximize value of other points you have to search for availability and then transfer points to a loyalty program. With FlexPoints, you just have to find a flight that is toward the upper end of a reward ticket tier and book it.
Given what I know about the US Bank FlexPerks Gold card, I think this is an excellent credit for anyone new to credit cards points. Additionally, the low annual fee makes the card very accessible and the points earning structure makes it easy to accrue points through everyday spending.
