Goldman Sachs and Barclays are nearing a deal that would see the GM card portfolio to move to Barclays for $2 billion in a discounted deal according to Bloomberg. In early 2023 it was reported that Goldman Sachs would stop bidding for new card portfolios and in late 2023 it was announced Apple would be cutting ties with Goldman Sachs. Goldman Sachs is expected to take a $400 million dollar hit on the deal according to CEO David Solomon.
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The GM Rewards card is my main credit card. I acquired the card Nov 2022. It was a real pain to sign up for even though I have a >830 credit score. They gave me initially a low credit limit of $5K. Within the first year my credit limit has been automatically raised to $17K. Between the sign up bonus and the loyalty bonus for having the card, I got $650 off of the purchase of a Chevy Bolt EUV (on top of other discounts I qualified for). It earns at least 4 points (4%) on EVERYTHING. It earns 7% on GM service and OnStar. Granted the points can only be spent at GM, it is still worth it to me as I can pay for GM service and accessories with it or use it on a new GM car purchase. I also get a yearly $100 statement credit for making 6 electric utility payments (yes, you can do more than one utility payment per month) and owning a GM EV. As a no annual fee card and a GM EV owner, it is a no brainer for the yearly statement credit alone. I hope the transition from Goldman Sachs to Barclays doesn’t screw this up.
A discount you don’t want. Worst vehicles I have ever owned
The GM card is the best card no one is talking about. Effectively gives you 4% cash back on every purchase everywhere.
Now granted, their website is crap, their application process is crap, their customer service is worse than crap…but once you get everything running smoothly, getting unlimited 4% cash back on everyday purchases makes this the best “everything” card you can get.
Can’t wait for Barclays to screw that all up ha.
US Bank is going to kill this card.
Also a free $100 for either $1,500 fuel purchases or 6 electric bill payments if owning an EV. Great added perk for a no fee 4% cash back card (providing one buys a GM vehicle).
Yes but you have to want to drive a GM car.
Also paltry credit lines.
So what’s the catch with this card if you’re getting 4X on every purchase?
There isn’t a catch, at least not one that I’ve found – other than like I said the annoying application approval process and shitty customer service. This has been my daily driver card for almost 2 years now.
It’s not cash back. It’s 4% back for a new GM car. Except the ones they arbitrarily say you cannot use it on. And when you do use the points, do you have to tell the dealer before or after agreeing on a price? I don’t know because I’ve never bought a new GM vehicle. And if you don’t buy one often, your can wait for many years to get your 4% back, by which time they’ve effectively devalued it (meaning, let’s say you have your eye on a car, you save your points for a few years, during which time the MSRP goes up $1k per year..wiping out your points savings. So what do you do, buy a car annually instead to cash out your points? Then you’re just churning cars.)
There are two things I use this card for: 1) Gas up to $1500 annualy and I stop right there for the $100 reward and 2) I’ve used it to pay for Sirius XM with points.
It also doesn’t help that they are stingy with credit lines so I can’t even consider this for daily use. The only reason I keep it is that it’s an old account and I can’t convert it to anything else.
If it is still the same, it’s after agreeing on the price. I had a 2k coupon they rounded my earnings to that I presented after negotiating the price. That was back in 2008 though, still driving the same car.
I’ve used the points at the dealer for maintenance as well. That may have changed?
I think you can still use the points for dealer service (or parts or Onstar or Sirius)
It *is* cash back though. The 4% isn’t just for a GM car. I redeem mine for statement credit every month. Literally click one button and that 4% is converted instantly into a credit on my statement. Have been doing it for over a year.
And they aren’t stingy with credit lines, at least in my experience, got a 10k line out of the gate, and they upped to 15k automatically like 5-6 months later.
The terms say “you can redeem up to $250 total in points value (equal to 100,000 points) per calendar year as a statement credit to be applied against your My GM Rewards Mastercard account balance. 1 point = $0.0025. ”
This means you can redeem at 1/4 c per point, so your 4% becomes a 1% card! And only up to $250 so $25k spend.
Perhaps you’re paying a GM Financial account balance? In that case it’s 1c per point. I just found this out, but then, I don’t have a GM financed vehicle. You can also redeem against purchases at GM dealers (where you get 7points), OnStar and Sirius XM. Of these, I can only use Sirius, since I have 2 non GM cars, and the one Pontiac I do have is old and not going to a GM dealer, and doesn’t have onstar. (It’s mostly a Toyota anyway).
So bottom line, as far as I’m concerned, cash is cash, and GM points are not cash.
If you buy new GM cars, service at GM dealers, or have a GM financial loan, you’re good with this card. Me, I just stick to the gas rebate and Sirius rebate.
[Regarding credit line, I requested an increase, and they say my score is 850 but I hadn’t been using it enough so no increase. So I maxed it out for them — wasn’t hard — then they said here’s a $500 increase. That’s what I call stingy. The next card I opened came with a 30k line.]
Redeeming for statement credits is 1% back as 1 point is worth 1/4 of a cent. This card only makes sense if you are going to buy a GM car or have a loan with GM finance.
Any DPs if a card conversion from Goldmans to Barclays would get me off Barclays’ blacklist from a charge off 10 years ago? 🙂
Probably not. More than likely they’ll decline to move your account over and it’ll be closed at that time.
I’ve seriously never seen a disaster as big as Goldman Sachs’ recent foray into the credit card space… Get out completely now (Apple included), stick to consumer services, and never ever fall for it again!
Barclay raised the APR on two of my cards to 28%+ due to market condition while telling me my credit score is 823. LMAO. Okay whatever.
I will still take my $2 small balance adjustment every month.
28% or even 8.9%… carrying a balance is not worth it.
I couldn’t even tell you what the APR is on any of my cards.. Since I have never paid interest.
Yep, exactly my point. The only time I pay attention to it is if I get a 0% (or a very low limited one that’s less than I can get in a CD). I’ve paid interest once in my life for an errant addition mistake.
A big +1, it may sound obvious but is always worth reminding! In fact, with rare exceptions, I always pay as soon as a charge posts on any of my credit cards (I have a small collection of 38….and counting).
I’m aware I’m not the most profitable customer for a bank, but my rule is pithy and simple: if I can’t afford to pay for something *immediately*, then I don’t buy it!
me too! i saw it in my last statement. had thought that it was very odd
Oh shit. Might be in trouble if this happens to me. Quick, what’s 28% APR on $0?
If you’re carrying a balance this is the wrong website for you…
Regardless of whether or not you pay interest it may indicate tightening credit conditions and that may make it harder to get cli
Watch the Apple Card be sold to Barclays as well.
If they do that (or sell to Synchrony or Comenity/Bread), I’ll just close my account 🤷♂️
.
The previous Apple card was from Barclays so it’s possible.
https://www.macrumors.com/2020/09/15/barclays-apple-rewards-visa-discontinued/
Great, Barclays will raise everyone’s APR to 34.99 “due to market conditions”.
Applications are still open, for now, so if you might want the GM Card, now is the time to apply for it, before it falls under Barclay’s underwriting requirements.