Today the premium credit card space became a little more crowded thanks to the US Bank Altitude Reserve credit card. Rumors of a new premium card from US Bank surfaced just a few weeks ago which US Bank confirmed a week ago. Today the application page went live on US Bank’s website. At face value the card seems like a direct competitor to the Chase Sapphire Reserve ($450), American Express Platinum ($550), and Citi Prestige ($450), but does that mean the card is worth the $400 annual fee? It’s time to take an in-depth look at the US Bank Altitude Reserve card to see if it’s any good.
US Bank Altitude Reserve Sign-Up Bonus
Currently, US Bank is offering 50,000 Altitude Points after spending $4,500 in net purchases within the first 90 days of card membership. Altitude points are essentially cash-back credits which are worth $0.015 when used for travel. Assuming you maximize the 50,000 Altitude point sign-up bonus the bonus is worth approximately $750.
It is worth noting the fine print behind the sign-up bonus clearly states $4,500 in NET purchases. Considering the card comes with $325 in automatic travel credits you may need to spend more than $4,500 to earn the sign-up bonus.
At the time of writing the US Bank Altitude Reserve card is only available to current US Bank customers. If you currently do not have a banking relationship with US Bank you may not be eligible to apply for the card.
Fine Print:
The US Bank Altitude Reserve Visa Infinite® Card is offered to US Bank customers who have an eligible consumer US Bank account relationship open a minimum of 35 days prior to submitting an application. An eligible U.S. Bank account relationship is defined as: Checking or Savings account, Certificate of Deposit, Mortgage, Home Equity Loan, Home Equity Line of Credit, Auto/Boat/RV Loan, Personal Loans and Lines, Private Banking account or Consumer Credit Card issued by U.S. Bank.
US Bank Altitude Reserve Points Earning Structure
Looking to compete with other premium credit cards on the market the US Bank Altitude Reserve card earns 3X points on Net Travel purchases. Additionally, the card earns 3X points on all Mobile Wallet transactions.
Similar to the Chase Sapphire Reserve, travel includes a wide variety of travel related purchases. According to US Bank travel is defined as “purchases made directly with airlines, hotels, car rentals, taxicabs, limousines, passenger trains and cruise line companies.”
The 3X points earned on all Mobile Transactions really sets the US Bank Altitude Reserve card apart from other premium cards. Mobile wallet transactions includes Apple Pay, Samsung Pay, Android Pay, and Microsoft Wallet. Transactions made with a mobile device at a merchant or online transactions through the previously listed mobile wallet providers all qualify.
US Bank Altitude Reserve $325 Travel Credit
The US Bank Altitude Reserve card comes with a very generous $325 automatic annual travel credit to offset travel purchases. The $325 in travel credits help reduce the effective annual fee to just $75 a year. The low effective annual fee makes this card the least expensive premium card on the market.
Interesting, unlike other premium credit card annual credits, the US Bank Altitude Reserve travel credits are based on card-member years. Many other cards base annual travel credits based on calendar years. Card holders can typically earn 2 travel credits before the second annual fee comes due with other cards. With the US Bank Altitude Reserve card, card-holders only earn the travel credits per each annual fee paid.
US Bank Altitude Reserve Priority Pass Membership
Much like other premium travel credit cards, the US Bank Altitude Reserve card offers a Priority Pass Select Membership. Sadly, this card includes a very limited membership which allows just four free visits a year. Any additional visits cost $27 each. Of all the premium credit cards on the market today, the US Bank Altitude Reserve card offers the most limited Priority Pass Select Membership I’ve seen. If you are looking to open a credit card for lounge access this is definitely not the right card for you.
Other US Bank Altitude Reserve Benefits
In addition to the benefits already discussed above, the US Bank Altitude Reserve card currently offers the following additional benefits:
- Global Entry / TSA PreCheck Application Credits (up to $100 value every 4 years)
- Exclusive Silvercar discounts
- Access to Relais & Chateau properties
- Exclusive GroundLink Car Service discounts
- 12 Complimentary Gogo In-Flight Passes
- Visa Signature Benefits (Excluding the companion airfare benefit)
- Other benefits found here.
Overall, majority of the “other” benefits from this card represents somewhat arbitrary value. People who frequently rent from Silvercar or use GroundLink may find a ton of value from the discounts offered, while others may never use those services.
The Gogo wifi passes represent over $200 in value annually and may alone help frequent travelers justify paying the annual fee. Gogo in-flight wifi is available on most domestic mainline flights and Gogo is currently retrofitting aircraft with their new 2KU service which offers incredible in-flight internet speeds. I think it’s also worth mentioning this benefit may soon be worthless if the electronics ban expands to domestic flights!
US Bank Altitude Reserve Design
The design of a credit card should never affect your decision to open a card, but the US Bank Altitude Reserve card features a solid full metal design. From what I’ve read the card weighs approximately 19 grams which is about the same weight as the new American Express Platinum card.
Clearly US Bank thinks having a metal card design is an important selling point in the premium credit card market.
My Opinion Of The US Bank Altitude Reserve Card
When I first read about the US Bank Altitude Reserve card I basically dismissed the card. Now that the card is official I am starting to see the value proposition. US Bank is not trying to compete directly with the Chase Sapphire Reserve, Citi Prestige, or American Express Platinum cards. It seems instead that US Bank is trying to accomplish two things with this card.
First, since this is the first time US Bank is new to the premium credit card market, I believe they are using this card to test the waters. Citi clearly couldn’t afford the keep the Citi Prestige benefits going and had to cut benefits just two years after introducing improvements. I’m guessing US Bank is limiting benefits up front and may look to improve benefits in years to come or introduce a new product all together. I personally wonder how profitable the Chase Sapphire Reserve card is for Chase in the long run.
Second, it seems US Bank is using the Altitude Reserve card to entice people to open other US Bank accounts. If anyone absolutely wants this card, they need to be an existing US Bank customer. If not they must open a US Bank account to receive approval for the card. This card seems like a great (legitimate) way to increase new account openings.
Final Thoughts
I am not a US Bank customer and I don’t plan on opening an account just to apply for the US Bank Altitude Reserve card. I have been trying to use Mobile Payments more as time goes on, but I’d still estimate 95% of my monthly transactions are through non-mobile methods. The ability to earn 3X points on all mobile transactions is exciting, but with my current portfolio of cards I earn 3-5X points on nearly every purchase already. Adding this card to my wallet would simply add more redundancy to my credit card portfolio.
For US Bank customers without other premium credit cards in their wallet, the US Bank Altitude Reserve card represents exceptional value.Card holders should come out on top as long as they maximize the annual travel credit and Gogo wifi passes. Additionally, earning 3X points on Mobile Transactions opens up exciting points earning opportunities not found in the existing premium credit card market.
All images courtesy of US Bank
