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Wells Fargo is ramping up its credit card rewards game. The bank recently announced its revamped Propel American Express credit card, a new rewards card designed to compete with premium credit cards like the Chase Sapphire Reserve®—but without an annual fee.
How the Card Works
Users will earn three points per $1 spent on dining, travel (including airlines, hotels, taxis, mass transit and even gas stations—an unusual and generous perk), and streaming services like Netflix and Spotify. All other purchases will earn 1 point per $1 spent. Points are worth one cent each and can be redeemed for cash back, travel purchases, gift cards and more.
Wells Fargo is clearly chasing the millennial crowd with its emphasis on travel, dining and streaming services—and for cash-strapped consumers who want to earn premium rewards without an annual fee, this is a unique offering.
Wells Fargo Propel vs. Chase Sapphire Reserve
This earnings structure is very similar to the Sapphire Reserve Card, which also offers three points per $1 spent on dining and travel. While Chase points are worth 1 cent each for cash back, they can be redeemed for 1.5 cents each for travel through the Ultimate Rewards Portal (and sometimes at an even higher redemption rate if transferred on a 1:1 basis to a partner airline program).
The difference, of course, is that the Sapphire Reserve Card comes with a hefty $450 fee, while the Propel carries none. That can make the slightly lower redemption rate on travel worth it.
There is no limit to how many points you can earn with the Propel card, and they never expire. If you spend $3000 on the card in purchases within the first three months of opening an account, you’ll earn 30,000 bonus points, worth $300 in cash back or travel.
Cardholders can also take advantage of a 0% introductory APR for one year, which then jumps to a variable APR of 14.24% to 26.74%, depending on your creditworthiness. There is also no foreign transaction fee on the card, making it a good option to carry abroad.
Online applications for the new Propel card will be available at Wells Fargo’s website on Monday, July 16.
Check out more rewards credit cards here.
Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication.