UnionBank Graphite American Express Review

UnionBank Graphite AmexThe UnionBank Graphite American Express Card is a rewards credit card which is aimed at people who spend most heavily on airline tickets each year with a 3% cash back reward rate for all airline spending.  All non-airline purchases earn between 1% to 2% cash back for each dollar spent.  The UnionBank Graphite American Express Card is issued by First Bankcard, a division of First National Bank of Omaha.

New card members receive a 0% annual percentage rate on purchases and balance transfers during the first 12 billing cycles that the account is active.  After this time, the APR will vary based on your creditworthiness at the time of approval (from 15.99% to 22.99%).  The UnionBank Graphite American Express Card also offers an introductory balance transfer fee of $10 or 3% per transfer (whichever is greater) for any transfers made during the first 12 billing cycles.  Once this promotional period expires, the standard balance transfer fee of $10 or 5% of the total amount transferred (whichever is greater) will be applied to each transfer.  Note:  this fee is steep compared to what other credit cards charge.  An average transfer fee is 3-4% or $5.

Card members earn points on qualifying purchases at the following rates:

  • Airline Transactions- 3 points (equal to 3% cash back) for each dollar spent
  • Gas and Grocery Transactions- 2 points (equal to 2% cash back) for each dollar spent
  • All other Credit Card Transactions- 1 point (equal to 1% cash back) for each dollar spent

Many times credit cards offer points rather than cash back and then keep the redemption rate low so that the rate of return on rewards is actually lower than what is stated in their advertising.  In this case, the base redemption rate of 2,500 points equals $25.   This means that card members actually receive the full rate of return on any points earned.  For example, if you purchase an airline ticket costing $600- you would earn 3% cash back (equal to $18).

The amount of points you can earn is not capped but any unused points do expire three years from the time they were awarded.  Points can be redeemed in 2,500 increments only.  As long as your account is open and in good standing, you may receive a reward in the following ways:

  • Check
  • Rebate credit to your account
  • Deposit to a checking or savings account (U.S. financial institutions only- ABA routing number required)

It’s important to note that qualifying transactions are based solely on the merchant category code (MCC) submitted with your purchase.  Transactions made at warehouse clubs (Costco, Sam’s) or superstores (Walmart, Target) do not qualify for the increased reward rate (2% on groceries and gas) but will receive the standard 1% rate.  If you routinely shop at these types of retailers, you should keep in mind that a large part of your purchases will only earn 1% in cash back rewards.

Additionally, points are earned on net purchases only.  These are the total amount of new credit card transactions minus any credits, returns, or other adjustments.  Annual fees, cash advances, and balance transfers are not considered purchases and do not earn points.

Card members receive additional benefits with the UnionBank Graphite American Express Card, including:

  • Domestic Airline Companion Ticket Discount- Receive a domestic airline companion ticket discount at every card member anniversary. Card member must purchase a regular price domestic ticket through Travel Privileges to receive the discounted second ticket.
  • Premium Concierge Service- Receive 24/7 assistance with dining reservations, travel arrangements or finding the perfect gift.
  • Travel Privileges- Get competitive rates, savings, or other amenities with leading hotel, airline, cruise line, and car rental partners world-wide.
  • Purchase Protection- Take advantage of purchase protection which will repair, replace, give reimbursement for eligible items of personal property (valued up to $1,000 per claim) for 90 from the date of purchase. Restrictions and exclusions apply.
  • Auto Rental Insurance- Obtain coverage, at no additional cost, for damage due to collision or theft on most car rental vehicles. Limitations and restrictions apply.

There are no foreign transaction fees applied to purchases made outside of the U.S.

The annual membership fee is waived for the first year.  After that, card members will be charged $99 annually for the card.

The Facts

Below we have broken down the specifics of the UnionBank Graphite American Express Card to help in determining if it’s a good fit for you.

The Good:

Introductory APR:

New account holders receive a 0% introductory APR on purchases and balance transfers for the first 12 months that your account is open.  After this promotional period expires, your APR will be a variable rate (based on Prime) of 15.99%, 18.99%, 20.99%, or 22.99%, depending on your credit score and other factors at the time of approval.  This is a solid deal for anyone wanting to purchase a big ticket item and pay it off over a year without incurring any interest charges.  It also benefits anyone wanting to move a high interest credit card balance to a card with a lower APR.

Discounted Companion Ticket:

Cardholders have the option to purchase a discounted companion ticket (domestic) at each card anniversary date when they purchase a regular price domestic ticket through Travel Privileges.

Multiple categories to earn points:

Members earn points (1 point=1% cash back) at the following levels:

  • Airline Transactions- 3 points (equal to 3% cash back) for each dollar spent
  • Gas and Grocery Transactions- 2 points (equal to 2% cash back) for each dollar spent
  • All other Credit Card Transactions- 1 point (equal to 1% cash back) for each dollar spent

Points are awarded on net transaction amounts which is the total amount of new credit card purchases minus any returns, credits, or other adjustments.  Annual fees, interest charges, balance transfers, and cash advances are not considered purchases and do not earn points.

Note:  The bonus rewards (3% on airline purchases, 2% on gas and groceries) are applied to transactions with a qualifying merchant category code (MCC).  Transactions made at warehouse clubs and superstores do not qualify for the additional bonus rewards but do earn the basic 1% cash back.  If the majority of your grocery and gas purchases are made at these types of retailers, you may want to consider a card which offers 2% cash back on all purchases with no limitations.

Various redemption options:

Points are redeemable in $25 increments (equal to 2,500 points).  This indicates a true rate of return where 1 point=1% cash back.  There is a minimum $25 redemption threshold.  Cardholders may redeem points for:

  • Check
  • Rebate credit to your account
  • Deposit to a checking or savings account at any U.S. financial institution (ABA routing number required)

Points are not capped:

There is no limit to the number of points you can earn.

Additional Graphite American Express benefits:

  • Domestic Airline Companion Ticket Discount
  • Premium Concierge Service
  • Travel Privileges
  • Purchase Protection
  • Auto Rental Insurance

No foreign transaction fees:

Card members are not charged foreign transaction fees on any purchases made with the card while traveling internationally.

The Bad:

Introductory balance transfer fee:

The UnionBank American Express also offers new account holders an introductory balance transfer fee of $10 or 3% of the transfer amount (whichever is greater) for the first 12 billing cycles that your account is open.  After this time, the standard balance transfer fee of $10 or 5% of the total amount (whichever is greater) will be applied to each transfer that posts to your account.  While it’s nice to have a 12 month period with no interest applied, both of these terms are a bit on the high side- an average fee would be around $5 or 4%.  You should decide if this is a deal or not.

Strict redemption amounts:

Points can be redeemed in increments of $25 only.  (Equal to 2,500 points)

Approval not guaranteed:

An excellent credit score (740+ FICO) is generally needed for approval.

The Ugly:

Annual fee:

Members are charged $99 annually for the card.  This fee is waived for the first year of membership.

Points expire:

Points expire three years from the date they were awarded.

The fine print:

On the surface this card appears to have a generous rewards program.  If you typically spend a lot on airline tickets every year, the 3% cash back rewards could work in your favor.  However, the 2% rate on grocery and gas purchases has a few disclaimers as far as what types of merchants qualify.  (Warehouse clubs and superstores do not) When you add on the $99 annual fee (waived the first year) this card may not be that appealing.  Consider your personal spending habits (travel, groceries, and gas) before signing up.