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Wells Fargo Will Launch No Annual Fee Card with 30,000 Point Sign-up Bonus

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On Monday, Business Insider reported that Wells Fargo will be launching a new rewards credit card which will ultimately be a revamped version of their current Propel credit card product. The card will have no annual fee and offer a 30,000 point sign-up bonus after spending $3,000 in the first three months of card membership. The bank wants this to compete with premium credit card products like the Chase Sapphire Reserve card, though we think that might be a bit of a stretch.

Learn more about this card and other travel rewards cards here.

 

Wells Fargo Propel Card Details

Much like the Chase Sapphire Reserve card, the new Propel credit card from Wells Fargo will earn 3x points per dollar spent on dining (restaurants, bars, restaurant delivery services) and travel. The travel & transit category will apparently include gas, which is not something currently offered from Chase Sapphire credit cards. Additionally, the card will also offer 3x points per dollar spent on streaming services like Netflix & Hulu and 1x point per dollar spent on everything else.

The points earned by the card will be worth 1 cent each and can be redeemed for cash back, gift cards, travel purchases and more. This effectively means that you will be getting 3 cents per dollar spent on restaurants, travel and streaming services. This is a solid return, especially for a no annual fee card.

As mentioned above, the new Propel card from Wells Fargo will also offer a sign-up bonus of 30,000 points after spending $3,000 in the first three months of card membership. Based on the points being worth 1 cent each, that sign-up bonus will be worth $300.

If you already have the previous version of the Wells Fargo Propel American Express card, you’ll be transitioned to the new version prior to July 16th. The old Propel card is no longer available for new applications.

Learn more about this card and other travel rewards cards here.

 

Our Analysis

The Wells Fargo Propel credit card will not allow you to transfer points to frequent flyer and hotel programs like Chase Sapphire Reserve and Chase Sapphire Preferred card do. Further, when Chase Ultimate Rewards points are redeemed for travel through Chase’s travel portal, the points are worth either 1.25 cents or 1.5 cents depending on which version of the card you have.

In my opinion, Chase clearly has the upper hand here, but there is certainly something to be said about the simplicity of redemption offered by the new Wells Fargo Propel credit card. Due to the lack of transfer partners, I think a comparison to the Capital One Venture Card is more appropriate.

Bev Anderson, Wells Fargo’s head of Cards and Retail Services was quoted saying “We’re continuing to innovate, and the ability to transfer points, as well as other features, is in our potential roadmap. In the meantime, we believe customers will enjoy the ability to redeem for travel, money, or gift cards at a full value of one cent per point, regardless of redemption method.” If at some point in the future Wells Fargo adds transfer partners to this card, it would have a lot more appeal for me personally.

With no annual fee, lucrative bonus spending categories and a no-frills way to redeem these points, I think it will certainly have a lot of appeal. However, while the Chase Sapphire Reserve card does have an annual fee of $450, it is important to do the math as it isn’t hard to come out way ahead on your annual fee investment.

Since Chase launched their Sapphire Reserve card back in the fall of 2016, we have seen the credit card rewards space become extremely competitive. All of the banks are competing for a share of your wallet by offering lucrative credit cards with fantastic benefits. Wells Fargo has been relatively quiet on this front so it is good to see them stepping into the ring with a new offering.

This trend is great for consumers. When banks compete for our wallet share in the form of credit card perks and sign-up bonuses, we all win.

 

Bottom Line

The is certainly an interesting development from Wells Fargo. With no annual fee, solid bonus categories and a no-frills way to redeem the points the card should appeal to a lot of people. Learn more about this card and other travel rewards cards here.

 

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H/T: Business Insider

Lead Photo (CC BY 2.0):  Mike Mozart via Flickr

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