Wells Fargo Home Rebate Visa Review

wells_fargo_home_rebate_visaThe Wells Fargo Home Rebate Visa is a rewards credit card which targets consumers who have a Wells Fargo mortgage and want to earn rebates on everyday purchases. These rebates can then be used to pay down the mortgage principal balance. New cardholders are currently being offered a signup bonus as well as an introductory 0% APR on purchases and balance transfers.

New members will earn a 5% rebate for every dollar spent on eligible gas, grocery, and drug store net purchases during the first six months that your account is active. This promotional period begins at the time of approval – not necessarily when you receive your card. All other eligible net purchases will earn a 1% rebate. Note: Rebates earned are displayed and redeemed as cash rewards. Net purchases are the total amount of your transactions minus any returns and/or credits. To earn the 5% bonus rebate, all transactions must be submitted by retailers with the standard Visa merchant code for gas, grocery, and drug store purchases. Important: Transactions made at superstores such as WalMart or Target or discount warehouses such as Costco or Sam’s Club do not qualify for the bonus rebate categories. Purchases made at these types of retailers earn the basic 1% rebate.

New cardholders are currently being offered an introductory 0% APR on purchases and balance transfers which is good for the first 15 months that your account is open and active. After this time, the APR will be between 12.15% and 25.99% variable and tied to the Prime Rate. Your actual APR is based upon your creditworthiness at the time of approval.

There is an introductory balance transfer fee of $5 or 3% of the total amount of the transfer (whichever is greater) for the first 15 months. After this, the standard fee of $5 or 5% of the total transfer amount (whichever is greater) is applied. This fee is not waived during the promotional time period.

Discounting the signup bonus rebate of 5% on gas, grocery, and drug store purchases, all other eligible purchases made on the card earn a 1% rebate. These rebates are applied automatically to your Wells Fargo Mortgage loan principal every time you earn a $25 rebate. Card members can choose to use the rebates for other redemption options such as travel, brand-name merchandise, or gift cards. You must notify Wells Fargo if you wish to do so.

There is no limit to the rebates you may earn each calendar year. Rebates do not expire as long as your account is open and in good standing.

Card members have the opportunity to boost their rebate earnings potential by accessing the Wells Fargo Earn More Mall website. It contains more than 10,000 local, national, and online retailers which routinely offer great deals to members.

For automatic cash redemption options created when you open an account, Wells Fargo will review your rewards account to determine the rebates you have earned. When you have earned $25 in rebates, a payment will be forwarded to your Wells Fargo Home Mortgage which will be applied to the principal balance.

Members may choose other rebate redemption options such as:

  • Cash
  • Travel
  • Merchandise
  • Gift cards
  • Digital rewards

Cash redemption options can only be redeemed in $25 increments.

Please note that if your account becomes delinquent, the rebates associated with your credit card account will not be available for redemption. Any rebates not yet posted to your account will remain in a “Rewards Pending” status until your account is brought up-to-date.

Cardholders receive additional benefits through the Visa Signature Network. These include:

  • Concierge Service – Enjoy 24/7 access to personal assistance services for help with things like theatre and show tickets, restaurant reservations, admission to sporting events, and more.
  • Luxury Hotel Collection – Receive best available room rate guarantee, room upgrades (when available), complimentary breakfast, and a $25 food or beverage voucher.
  • Emergency Cash and Card Replacement – Get a replacement card and emergency cash funds when needed.
  • Trip Cancellation and Trip Interruption Protection – Purchase tickets with your Visa Signature Card and receive reimbursement for the cost of your scheduled airline fare for a covered trip in the event it must be cancelled or interrupted due to a covered reason. Limitations and exclusions apply.

The Wells Fargo Home Rebate Visa comes with smart-chip technology for enhanced security.

Card members are charged a 3% foreign transaction fee on all purchases made on the card while traveling outside of the U.S.

There is no annual fee for this card.

The Facts

Below we have broken down the specific details of the Wells Fargo Home Rebate Visa to help you determine if it’s the right choice for you.

The Good:

Signup bonus:

New card members receive a bonus 5% rebate on all eligible gas, grocery, and drug store net purchases made on the card during the first six months that your account is open. Net purchases are the total amount of transactions minus any credits or returns. This promotional period begins the moment you are approved for the card not when you receive it – so the actual time period may be less than six months.

0% introductory APR:

New cardholders can take advantage of the 0% introductory APR currently being offered on both purchases and balance transfers. This 0% APR is valid for the first 15 months that your account is active. There is also an introductory balance transfer fee of $5 or 3% of the total amount of each transfer (whichever is greater) valid for the first 15 months. After this time, the standard balance transfer fee of $5 or 5% of the total transfer (whichever is greater) will be applied. This fee is not waived during the promotional APR time period.

Rebates:

Excluding the signup bonus of 5% bonus rebates on gas, grocery, and drug store purchases (for six months), members earn a 1% rebate on all eligible purchases made on the card. Rebates earned are displayed and redeemed as cash rewards.

Redemption:

Rebates are applied automatically to your Wells Fargo Mortgage loan principal every time you earn a $25 rebate. You must notify Wells Fargo if you wish to use another option.

Other rebate redemption options include:

  • Cash
  • Travel
  • Merchandise
  • Gift cards
  • Digital rewards

Cash redemption options can only be redeemed in $25 increments.

Rebates do not expire:

Your rebates do not expire as long as your account remains open and in good standing.

No limit on rebates:

There is no cap on the amount of rebates you may earn in each calendar year.

Visa Signature benefits:

Cardholders receive additional benefits through the Visa Signature Network. These include:

  • Concierge Service
  • Luxury Hotel Collection
  • Emergency Cash and Card Replacement
  • Trip Cancellation and Trip Interruption Protection

Smart-chip technology:

The Wells Fargo Home Rebate Visa comes with smart-chip technology which is widely accepted throughout the world and will soon become the standard in the U.S. This feature offers multi-layered security to protect against fraudulent use.

No annual fee:

There is no annual fee associated with this card.

The Bad:

Wide range of APRs:

Once the 0% introductory APR expires after 15 months, you may be paying a very high annual percentage rate if you maintain a balance on your card. APRs start as low as 12.15% (variable based on Prime) for customers with excellent credit but extend to 25.99% (variable based on Prime) for those with lower credit scores. What rate you receive will be determined by your creditworthiness at the time of approval.

Foreign transaction fees:

Card members are charged a 3% foreign transaction fee on every purchase made on the card while traveling internationally.

Harder to qualify:

Wells Fargo states in the terms and conditions of this card that if you do not qualify for the Signature Visa you may be considered for a standard Visa which comes with different terms, benefits, and rebates. Some applicants will not qualify for any card.

The Ugly:

Bonus rebate fine print:

To earn the 5% bonus rebate, all gas, grocery, and drug store transactions made during the first six months must be submitted by retailers using the standard Visa merchant code for these purchases. Superstores such as WalMart or Target or discount warehouses such as Costco or Sam’s Club do not fall into the eligible merchant category. Purchases made at these types of retailers will earn the basic 1% rebate.

Aimed at Wells Fargo Mortgage customers:

Just from the name of the card, it is apparent that the Wells Fargo Home Rebate Visa is aimed at Wells Fargo Mortgage customers. Rebates are automatically applied to the mortgage principal balance each time a $25 rebate is earned. The website offers a Rebate Card Savings Calculator which you can use to estimate your savings over time. For example, if you have a $200k, 30 year mortgage at 6.25% and you spend approximately $1,500 a month on your card, you would save nearly $15,000 over the life of your loan. While this sounds great on paper, the truth is you can accomplish the same thing using any 1% cash back card (other than you actually have to redeem the cash and put it towards your mortgage). While it’s convenient to have the payments automatically applied to your principal – a 1% rebate/reward rate is fairly low in today’s credit card market. And if you choose to use other redemption options (merchandise, gift cards) your rate of return will most likely be less than 1%.