The New/New SECU Rewards Card: A Penny For Your Thoughts!

  ... for what it's worth.

😎 Do you know what the redemption value of each SECU rewards card point will be? According to the card disclosures, the redemption value is $.01. Now don't let those decimals fool you! "$.01" = 1 cent! That's right one penny!

So let's look at an SECU member - a young, newly minted North Carolina school teacher [starting salary currently @$40,000], who wants to earn enough rewards to buy a $900 round-trip air ticket to go see her Mom in Seattle. She has a $5,000 credit limit.

❃ How many points will she need to buy that ticket?

✅ Example #1: The SECU member makes new purchases with the card of @$1,000 each month, makes regular monthly payments, and carries an average balance of @ $1,500 throughout the year. [According to the Federal Reserve the average credit card balance is actually @$6,500].

The member earns on average "2x" points on her total yearly rewards purchases!  The interest rate charged on the SECU rewards card is 3% higher than on the SECU non-rewards card. 

❃ How long will it take the young teacher to earn enough points to buy that $900 ticket to go see her Mom?

✅ Example #2: What if in trying to get started in life with apartment/electricity deposits, new clothes, a little furniture, car insurance, etc; our young teacher "maxed out" her card ($5,000). She then responsibly makes minimum payments to get her high interest debt repaid debt repaid. 

❃ Our teacher will be paying a "bonus" 3% higher interest rate on her rewards card balance.

❃ How long will it take for her to earn enough points to go see Mom?

❃ Should she be grateful to the SECU executive leadership (ELT) team and the SECU Board for helping her out in this way? "Enticing" her to pay 3% more over several years so she can go see her Mom?

😎 Our government is doing away with the penny? It cost more than it is worth! They may be on to something...

   A penny for your ... trust?

 

The SECU "New/New" Rewards Card: Has That Ship Already "Sailed"!

 ❊Just Announced!

You've seen a lot of back and forth about the new SECU rewards card in the last couple of posts [link]. One commenter said: "Tell us how the Rewards card is less competitive."

😎 Funny how life works sometimes. The mail today included an unsolicited,  pre-approved rewards card offer from Navy Federal Credit Union (NFCU). I've never served in the military, but have a son who has - so I'm eligible to join! If you're not eligible to join NavyFed; you definitely can join PenFed [which has an extraordinary array of rewards cards - link]. You're eligible at PenFed: 1) if you've ever said, or heard someone say, the Pledge of Allegiance or 2) if you've ever said, or heard someone say, "Thank you for your service!"

   

    A request to set sail!

✼ The disclosures, restrictions and legalese which apply to both SECU  and NFCU cards are extensive (compare for yourself at the websites). But it seems clear that NavyFed's best interest rate is slightly better (14.9% vs 15%) than SECU. The NFCU Cash Advance rate is much better (16% vs 18%). Neither card has an annual fee; both have a grace period. 

✼ In the rewards points area, many different limitations apply [link] but where both credit unions "spell it out" it appears NFCU is paying more points (3x) at grocery stores than SECU. For members traveling abroad SECU charges a 1% foreign exchange fee, NFCU charges nothing.

✼ NavyFed will give you 40,000 points free to open an account and pay your annual membership fee for free home delivery from Walmart.

✼ NFCU rewards never expire, SECU's do expire after 5 years.

Lower rates, higher rewards, bonus points, other pers, no expiration....

   Where ya' gonna enlist?