The GM Flexing Earnings Card last reviewed on 16th January 2008
Summary - The GM Flexible Earnings Card is the second credit card that General Motors have introduced that is a little different from their first card. This card allows you to earn points with the card which can either be used for the purchase or lease of a new GM vehicle (eligible models), the purchase of any new non-GM vehicle, or simply to redeem for cash rebates.
Rebate Formula - The GM Flexing Earnings Card allows the cardholder to earn 1% rebate for every dollar that is spent on the card. You have three ways to redeem the rebates on the card.
1. Cardholders can choose to redeem rebates for the purchase or lease of a new (eligible) GM vehicle. If you decided to do this your rebate increased from 1% to 3%. Each eligible GM vehicle allows up to a certain maximum amount of rebates that can be redeemed for each model.
2. Use the cash rebates to redeem for the purchase of a "new" non-GM vehicle. Saturn and Saab are considered non-GM vehicles.
3. Or simply redeem your cash rebates (at 1% rate).
Fees - The GM Flexible Earnings Card has no annual fee. New cardholders get a 0% apr on balance transfers for 12 months. There is a balance transfer fee of either 3% of the balance transfer (not less than $15.00).
As of 6/1/07, the current APRs are14.24%, 18.24%, 21.24%. The average daily balance method (including new purchases) is used to calculate monthly balances.
Verdict - The GM Flexible Earnings Card is a more flexible card than the original GM card. The original GM Card allowed cardholders to earn 5% rebates on all purchases. However, the rebates can only be used to redeem eligible GM vehicles. There are many cardholders who have decided not to purchase a new GM cars and all their "rebates" went to waste. With the new GM Flexible Earnings Card, this dilemma is resolved. Rebates can be redeemed for "cash rebates" and also for the purchase of a new non-GM vehicle. However, with this "flexible" comes at a cost versus the original card. And that is you only earn 3% rebates if you use the rebates for a new GM vehicle (rather than 5% for the original card).
If you want to use your credit card spending to earn rebates that can be used for a new GM vehicle, but yet want the flexibility just in case you change your mind, then this card would be better than the original GM Card.
Positives
Earn 3% rebates if you use rebates for purchase or lease of a new GM vehicleRebates can also be used for the purchase of non-GM vehicles and "cash rebates"No annual fee0% apr on balance transfers for 12 months
| Introductory rate |
0% apr on balance transfer for through first 12 billing cycles |
| Annual Fees |
No annual fee |
| Purchase APR |
As of 6/1/07, the current APRs are14.24%, 18.24%, 21.24% |
| Balance Transfer APR |
As of 6/1/07, the current APRs are14.24%, 18.24%, 21.24% |
| Cash Advance APR |
Prime rate plus 15.4% |
| Penalty/Default Rate |
Prime Rate plus 21.99% |
| Min Finance Charge |
$1.00 |
| Grace Period |
20 days |
| Balance Calculation Method |
Average Daily Balance (including new purchases) |
| Balance Transfer Fee |
3% min $15.00 |
| Cash Advance fee |
3% min $15.00 |
| Foreign Currency Conversion fee |
3% |
| Over-the-credit-limit fee |
$35.00 |
| Late Payment fee |
$19.00 - up to $100.00
$29.00 - $100.00-$1,000.00
$39.00 - more than $1000.00 |
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