The UnionBank American Express is a credit card for people who want to earn cash back rewards on every purchase made with the card. Additionally, it offers new account holders a low introductory APR on purchases and balance transfers. It 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 for the first 12 billing cycles that your account is active. After this time, the APR will be 15.99%, 18.99%, 20.99%, or 22.99%, based on your credit score and other factors at the time of approval. The UnionBank American Express also offers an introductory balance transfer fee- $10 or 3% per transfer (whichever is greater) for any transfers made during the first 12 months your account is open. Once this promotional period ends, 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 relatively steep compared to what other credit cards charge.
The UnionBank American Express card has a cash back rewards program whereby members earn 1 point (equal to 1% cash back) for every dollar spent on qualifying credit card transactions. Many times when credit cards give points rather than cash back rewards, redemption values are kept low so that the rate of return actually equals less than the advertised amount. However in this case, card members can redeem points in 2,500 increments equaling $25 so the 1% rate is legitimate. There is no limit to the number of points you can earn. There is a minimum $25 redemption threshold but that is the only stipulation. Points may be redeemed in the following ways:
- Check
- Rebate credit to your account
- Deposit to a checking or savings account at any U.S. financial institution (ABA routing number required)
Points expire on or after the third anniversary of when they were awarded.
Members receive additional American Express benefits such as:
- Travel Privileges – Receive competitive rates, savings or amenities with leading airline, hotel, cruise line, and car rental partners around the globe.
- Purchase Protection – Enjoy purchase protection to replace, repair, or receive reimbursement for eligible items of personal property up to $1,000 (per claim) for 90 days from the date of purchase. Exclusions and restrictions apply.
- Extended Warranty – Receive double the original warranty on a product up to a maximum of one additional year. Limitations and restrictions apply.
- Auto Rental Insurance – Get coverage for damage due to collision or theft on most car rental vehicles (at no additional cost). Restrictions and limitations apply.
Cardholders are charged a 3% foreign transaction fee on every purchase made with 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 UnionBank American Express to help you decide if it’s worth signing up.
The Good:
Introductory APR:
New members receive a 0% introductory APR on both purchases and balance transfers for the first 12 billing cycles from the time of approval. After this promotional period ends, the actual APR will be 15.99%, 18.99%, 20.99%, or 22.99%, based on your creditworthiness. This is a solid deal for someone wanting to purchase a big-ticket item- this promotion would allow you to pay it off over the course of a year without incurring any interest charges. The same holds true for anyone wanting to move a high-interest credit card balance to another card with a lower APR.
Simple points reward program:
Members earn one point (equal to 1% cash back) for every dollar spent on eligible net purchases made on the card. Net purchases are the total amount of new transactions minus any credits, returns or other adjustments. Interest charges, fees, balance transfers, and cash advances do not qualify as purchases and do not earn reward points.
Various redemption options:
Points are redeemable in $25 increments (equal to 2,500 points for a true rate of return of 1%). 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)
No cap on points:
There is no limit on the number of points you can earn.
Additional American Express benefits:
- Travel Privileges
- Purchase Protection
- Extended Warranty
- Auto Rental Insurance
No annual fee:
Members are not charged an annual membership fee.
The Bad:
Points expire:
Unused rewards points expire three years from the time they were awarded.
Minimum redemption amount:
There is a minimum redemption threshold of $25. (Equal to 2,500 points)
Not everyone will qualify:
An excellent credit score (740+ FICO) is generally needed for approval.
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. Realistically speaking, both of these terms are a bit on the high side- an average fee would be around $5 or 4%.
The Ugly:
Rewards don’t measure up:
The UnionBank American Express is a fairly basic credit card. While the amount of cash back you can earn is not capped and there is no annual fee, the credit requirements are those of a much more generous rewards card. The 1% base rate on rewards is unimpressive.