As Credit Card Madness continues, we have finally reached the end of similar cards from the same card issuer. Going forward card match-ups will be between various co-branded card and comparing cards between card issuers. Today’s match-up however is between two more cards from US Bank. The US Bank FlexPerks Travel Rewards vs the US Bank FlexPerks Gold card.
FlexPerks Rewards Overview
Considering both of these cards earn rewards in the form of FlexPoints it’s important to first understand what FlexPoints are and how valuable they are. FlexPoints accrue like any other rewards program points. The major difference is in how to redeem FlexPoints. Points can’t transfer to travel partners and are used to pay for flights through the FlexPerks booking portal. Although this seems limiting there are two major benefits of this method.
First, travelers earn points/miles/status when traveling because the flights are paid for using cash. Second, the value of the points is variable. Flights of $400 or less cost 20,000 points. Flights from $400 through $600 cost 30,000 points, etc. Because redemption rates are tiered it’s possible to get $0.02 of value from FlexPoints.
For example, a $200 flight represents poor value since points are only worth $0.01 since the flight still costs 20,000 points. A flight of $400 on the other had is a great value since the points are now worth $0.02! FrequentMiler from BoardingArea published a great piece on how to get maximum value from FlexPoints which is found here.
Now that we better understand what FlexPoints and FlexPerks are its time to start today’s US Bank FlexPerk card showdown.
US Bank FlexPerks Travel Rewards
The US Bank FlexPerks Travel Rewards card is a traditional rewards credit card which earns FlexPoints on all eligible purchases. FlexPoints can be used on a wide variety of redemption options, but are best used when redeemed for air travel. There are several benefits the card offers which make it extremely appealing for the relatively low $49 annual fee.
Key Benefits
- Earn a 20,000 FlexPoints sign-up bonus after spending $2,000 on eligible purchases in the first 120 days following account opening.
- Card holders earn 1X FlexPoint per $1 on all eligible purchases
- Earn 2X FlexPoints per $1 on purchases on one bonus category (gas stations, airlines, or grocery stores) per billing cycle. Whichever category is greatest.
- Earn 3X FlexPoints per $1 on spent on charitable donations.
- $25 Airline Credit on ALL award tickets booked with FlexPoints.
- Earn 2X Flex Points per $1 spent on cell phone services.
- 12 Complimentary Gogo In-Flight Wifi passes annually.
- $49 Annual fee, waived for the first year.
Benefits Overview
I am very surprised by how good the benefits of this card are for just a $49 annual fee. The sign-up bonus alone is worth $400 when redeemed properly for airfare. I love that the card earns 2X FlexPoints on bonus categories that rotate based on you monthly spending. The card doesn’t force you to pick a category and stick to it. Instead, use the card all month long and you’ll automatically earn the bonus points on the category with the highest monthly spend. If the category changes the following month, you’ll earn bonus points on the new category. It really is the simplest rotating category option I’ve seen in the whole Credit Card Madness series. Hopefully, the rotating categories help card holders earn FlexPoints for travel even faster!
On top of the points earning potential, I love that the card offers 12 Gogo in-flight passes each year. Each pass is good for full internet access on one flight segment on one device. The passes are only eligible for flights within the United States and Canada. Although the pass usage seems limiting, it’s important that 1-Hour Gogo passes typically cost $7.00 each. This benefit alone, if maximized, offsets the $49 annual fee.
Another fantastic benefit is the $25 airline credit on all reward flights. Each time you use FlexPoints to pay for a flight you of course get the free flight, but you also get $25 for airline incidentals. Simply use your card during your trip and call US Bank to apply statement credits to offset the first $25 in incidental charges. According to the fine print the $25 can only be used for “Qualified Purchases,” but generally any charge that shows up as the airline name will qualify.
US Bank FlexPerks Travel Rewards Summary
Don’t let the low annual fee for this card fool you. There is a ton of value that you can get from this card if you frequently travel, as the name implies. Although bonus point categories are fairly limiting, I love that the card automatically grants 2X bonus points on the category you spend the most on each month.
US Bank FlexPerks Gold
I reviewed this card in detail not too long ago and a detailed review is found here. This card absolutely blew me away when I first reviewed it. For just a $85 annual fee I could not believe some of the benefits the card offered. On top of that, card holders earn valuable FlexPoints which are of incredible value when redeemed for airfare.
Key Benefits
- 3X FlexPoints per $1 spent at restaurants, 2X FlexPoints per $1 spent on gas station and airlines purchases, and 1X FlexPoints on all other purchases.
- TSA PreCheck or Global Entry Statement Credit
- Complimentary Boingo WiFi Membership
- $25 Airline incidental credit per reward flight redeemed.
- No Foreign Transaction Fees
- $85 Annual Fee, not waived the first year.
- Earn 30,000 FlexPoints after spending $2,000 in the first 4 months following account opening.
Benefits Overview
For just an $85 annual fee I’m not sure if there is a more rewarding credit card on the market today. Card holders earn 3X points at restaurants and 2X points at gas stations and for airfare. Those are some very generous bonus categories offered for such a low annual fee. On top of the points earning potential, all FlexPerks Gold card holders get a free Global Boingo Wifi membership. According to Boingo global memberships typically cost $39.00/month. Clearly if you end up using Boingo Wifi while traveling the card pays for itself.
I like that this card also waives foreign transaction fees and offers a statement credit for global entry (or TSA PreCheck). Clearly this card is marketed toward people who enjoy traveling. It seems to me that this card is a near direct competitor to the Chase Sapphire Reserve which carries a $450 annual fee!
Similar to the FlexPerks Travel Rewards card, FlexPerks Gold card holders also earn the $25 airline incidental credits when traveling on reward tickets. Rumor has it that this $25 credit could pay for upgrade stickers or airline gift cards, but YMMV and I would do some research before trying this. With that, if you are traveling on a reward ticket it may be worth buying an airline gift card if you do not have any other incidental charges.
And The Winner Is!
This is a very close call, but I have to give this round to the FlexPerks Gold for two simple reasons. The first reason is that the Boingo WiFi membership is more lucrative than the 12 Gogo passes. Boingo is everywhere, not just in the air. Also, some passengers (myself) enjoy being disconnected for a couple of hours. The second reason is the more lucrative FlexPoints earning potential. Card holders earn bonus points on all restaurant, gas station, AND airline purchases rather than just the category they spend more on. Sure the annual fee is a little more each year, but the increase is more than justified by the benefits offered.
