If you are looking for a new MasterCard you might search online for various options and will often find reviews as well as complaints posted about either the merchant sponsoring the card or about the credit lender’s practices.
The General Motors MasterCard is an exception. Consumers have routinely rated this as one of the best credit cards to have. Account holders are happy with the rewards program, like the website that provides information and management tools and praise the customer service.
Advantages
In the past year there has been a massive shuffling of branded cards from one lending bank to another. It’s not unusual today for a branded logo credit account to change from one lender to another big bank every 12 months.
In theory, this should not affect you if you have a credit card that carries the name of a major retail brand. In practice, however, this can result in a major change in how your account is handled.
This most often is apparent in the customer service area. The customer service offered by CitiBank may be more or less efficient and helpful than the customer service at Chase or Capital One. The willingness of the lender to work with you on a problem wit your account can vary widely from one lender to another.
Though the terms of your account will remain the same, your credit experience can be markedly different if a retail credit card changes the financial institution used to manage the credit offers.
GM has used HSBC Bank for several years to provide the account management of the General Motors MasterCard. This loyalty is unusual in a market where branded cards seem to be back by a different lending institution every few months.
This avoids users required to sign up for and navigate new sites online and provides continuity in account management and customer service. This solid business approach by GM has resulted in wide approval and recommendation of the MasterCard by those who use the accounts.
In a shaky economy where financial accounts seem to change from week to week, there is no better recommendation than a satisfied credit card holder.
The re-emergence of General Motors as a viable and profitable business entity has led to a gain in popularity of the MasterCard. The interest rates of 13.99% and 22.90% (depend on the credit rating of the applicant) are in line with other credit offers today.
A twelve month 0% introductory APR on purchases and balance transfers for new accounts is a bonus many consumers are seeking today.
The ability to transfer a high interest rate balance from another credit card to a new account is recommended by economists as a way to manage and pay off high APR credit card debt.
Cash advances are possible but are not advisable due to the 24.9% variable interest rate for cash advances. In addition, there is a fee for each advance which is $15 or 3% of the cash advance, whichever is greater.
Balance transfers conducted in the first 12 months after receiving your new card carry a $10 or 3% transfer fee. That fee increases to $15 following the first year of account use.
The rewards on the General Motors cards are high with unlimited 5% earnings on all credit card purchases. The rewards program is often what draws consumers to this credit card as earnings can be applied to a new GM vehicle.
There is a redemption allowance provided for each vehicle and rewards can be applied to the purchase up to that limit.
The online tools for the accounts are user friendly. You can set alerts to remind you to make a payment or to alert you when you are close to the spending limit.
You can track spending online, sign up for paperless statements and you have even a 100% fraud liability protection. You can even use free online bill pay to pay other monthly expenses.
Special online offers can provide savings and also boost rewards earned. GM advertises the benefits of “turning plastic into steel” and consumers agree using the earned rewards is simple and straightforward.
To redeem earnings you can visit your local GM dealer (Chevrolet, Buick, GMC or Cadillac) and choose the vehicle you want to buy. You can negotiate for the best price and take advantage of current incentives offered.
After you have finished negotiating for the best deal and best terms you can then identify yourself as having a General Motors MasterCard and tell the dealer to deduce the rewards earned on your credit card from the agree upon purchase price.
The amount of reward you can use is limited to the redemption allowance for the vehicle of your choice. The lowest redemption allowance is $1000 but quite a few GM vehicles allow you to redeem $1500, $2000 or even $3000 in reward points toward the price of your new car.
Disadvantages
The only disadvantage may be the high fees charged as a penalty APR if you are late on a monthly payment. The 30.99% penalty APR provides a good reason to make all of your payments in a timely way.
Summary
The MasterCard from General Motors may be one of the best credit cards you can apply for. If you plan to purchase a new car in the future, this card will more than pay for itself.
Interest rates are in line with other MasterCard offers and HSBC has a great reputation for quality online tools and customer service.
Using the GM credit card for all of your purchases during the year could save $1000 or more real money when you buy your next GM vehicle.
There is no price manipulation involved in redeeming your rewards as you can negotiate for the best deal on the car of your choice before mentioning using your redemption rewards.
