My GM Rewards® Mastercard® review: An ideal rewards card for GM lessees

The GM Rewards card’s 4X points on all non-GM purchases technically provides double the rewards value of the Wells Fargo Active Cash® Card, but the Active Cash has an advantage with its unlimited 2 percent cash rewards — it can go right into your wallet instead of a GM discount.

A 2 percent flat cash rewards rate is one of the best you’ll find, including automotive related purchases, and the card’s $200 cash rewards bonus after you spend $500 in purchases in your first three months is great — already much more valuable than the GM card’s $150 for double the spending requirement.

Plus, the Active Cash can keep interest at bay on upcoming auto expenses longer, for 15 months with its 0 percent intro APR from account opening on purchases and qualifying balance transfers (thereafter a variable APR of 20.24 percent, 25.24 percent, or 29.99 percent; 3 percent ($5 minimum) intro balance transfer fee for your first 120 days, then up to 5 percent, $5 minimum).

What’s more, the Active Cash is a Visa Signature® card that comes with a few benefits that may be more helpful for drivers than subscription service perks. These features can include 24/7 pay-per-use roadside dispatch, an auto rental collision damage waiver and Wells Fargo’s staple cellphone protection against eligible damage or theft (up to $1,200 per year across up to two $600 claims, minus a $25 deductible for each claim).

Despite not offering an intro purchase APR or boosted rewards on GM purchases, the no-annual-fee Capital One Walmart Rewards® Mastercard® still stands as one of the better rewards cards for automotive-related purchases. Its 5 percent cash back at Walmart.com and 2 percent in-store (5 percent in-store during the first 12 months when using Walmart Pay) gives you excellent rewards earning potential thanks to the superstore’s sweeping auto department.

The boosted cash back rate even applies to Walmart Auto Care Center service, tires, parts, accessories and more. You’ll also earn 2 percent back on travel, restaurant and Walmart fuel station purchases — handy categories for commuters and fans of road trips. If you’re loyal to GM and want to keep your auto purchases with them, then the GM card is likely the better fit. But if you want a little more freedom beyond the GM bubble, this Capital One Walmart Rewards card is worth a look. 

A card like the Blue Cash Preferred® Card from American Express could be great for household expenses, especially if a decent portion of your budget goes to groceries and streaming services. Cardholders earn 6 percent cash back on U.S. supermarket purchases for up to $6,000 per year (then 1 percent) and select U.S. streaming subscriptions. This can be useful for anyone spending under $500 per month on groceries.

Plus, the card also comes with perks that the My GM Rewards card misses, such as credits for services like ShopRunner and travel protections, such as car rentals Car rental loss and damage insurance. The card does come with a $95 annual fee, but it’s waived the first year, giving you time to figure out the perfect way to use the cards together. 

While the My GM Rewards Card can be great for everyday purchases due to it’s flat earn rate of 4X points, the Chase Sapphire Preferred® Card is a versatile option if you want to travel beyond your car. You can earn 5X points on travel booked through the Chase Travel℠ portal including airfare and car rentals. This card also charges a $95 annual fee, but it is easily offset by the card's perks like the annual credits. There’s a $50 credit for hotels booked through Chase Travel℠ and an account anniversary bonus with which cardholders receive bonus points equal to 10 percent of total purchases in the previous year.

My GM Rewards Card is the best fit for people who own a GM car and use the dealership services. You’ll only earn the highest rewards rate on GM purchases, including services and accessories. Plus, the easiest redemption goes towards the same categories. If you choose this card, you’ll be locked in with the GM brand. This factor could be limiting for many vehicle shoppers, but if you love the GM brand, this card could work for you.

Keep in mind a few caveats, though: You won’t earn points on purchases for business or commercial use (based on how the issuer reviews them), GM Fleet vehicles or work related to warranties, recalls or the body shop. So, some of the people who can benefit most from the GM card may not earn points on the bulk of their GM spending. Instead, business owners should consider the GM Business Card™, which offers a slightly different rewards structure.

The primary criteria for a rewards or cash back card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits, according to data from the Bureau of Labor Statistics. 

Based on this data, we determine a “chargeable” spend (which purchases are likely to be put on a credit card and earn rewards). This includes the following spending by category:

• Groceries: $5,200
• Dining out: $3,000
• Entertainment: $2,500
• Gas: $2,100
• Apparel and services: $1,700

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 23 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases, as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

We also rate cards based on how much it costs to keep them in your wallet or carry a balance. 

To start, each rewards or cash back card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards or cash back cards. 

We also score each card based on how its annual fee influences its overall value. 

We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value, but if a card offers terrific value via its ongoing rewards and perks, it can earn a high score even if it carries a high annual fee. 

With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against other cards in the category when you subtract its annual fee.

We rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards and factor this rating into a card’s overall score. 

Flexibility factors include whether a card only allows you to earn a high rewards rate on a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you redeem for some options versus others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners.

We also score each card’s set of features – its perks and benefits — against five tiers of features to provide a rating. 

We break down these tiers as follows:

• Tier 1 has less than standard card features (an ultra-streamlined card that offers basic utility and next to nothing in the way of ancillary benefits. 
• Tier 2 includes the benefits you’d expect on standard Visa or Mastercard credit cards, such as free access to your credit score, car rental insurance and $0 liability for fraudulent charges. 
• Tier 3 includes “prime card” or better-than-average card features like cellphone insurance, lost luggage insurance, concierge services and purchase protection. 
• Tier 4 includes luxury features such as airport lounge access, elite status with an airline or hotel and credits for expedited security screening membership programs. 
• Tier 5 includes the sort of exemplary benefits you’ll find on top-tier luxury cards, such as high-value travel credits, cardholder memberships and other unique and valuable perks.

A GM Financial plan may occasionally offer reward opportunities (although currently unspecified by GM).

You can pay your GM Financial charges with your credit card, although you must make the payment through the Western Union or MoneyGram transfer services. However, these services can pile on significant transfer fees and charges for paying with a credit card.
Unfortunately, the combined costs and inconvenience will likely outweigh any potential rewards value you’d get from paying GM Financial charges with your My GM Rewards card.

For the best approval odds, you should apply with good to excellent credit (a FICO score of 670 or higher, or a VantageScore of 661 or higher).

Marcus, by Goldman Sachs, currently issues the My GM Rewards card.

GM’s co-branded cards were previously Capital One credit cards, but GM relaunched its rewards program earlier this year to fit the new My GM Rewards card. If you have a discontinued card like the GM BuyPower Card®*, GM’s terms fortunately state that rewards from previous GM rewards credit cards will convert to points usable with the current program.