Uber Card Changes — best alternative card for restaurants

Uber Card Changes — best alternative card for restaurants

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Hey there, Dave here. This is a sad day
for self-proclaimed credit card nerds like myself. This is a video that I
really did not want to have to make but it turns out that my all-time favorite
credit card for cash back at restaurants really was too good to be true of course
I’m talking about my Uber Visa card this is the card that pays four percent back
well at least it used to pay four percent back at restaurants three
percent on airfare in hotels and two percent for online purchases one percent
everywhere else this is a great card but none of that is true anymore a couple of
days ago comments started pouring in on my youtube videos I feel kind of bad
because I’ve been raving about this card in my credit card videos it really was
an amazing card I’ve gotten a lot of comments from people who have signed up
for the card only to find out that it is changing in fact it was actually the
comments that alerted me to these changes
clearly I check my comments on YouTube more often than I check my personal
email but when I did login and check my email there it was you gotta love
marketing putting a positive spin on a very negative change so in this video
we’re going to dive into what exactly changed when those changes are taking
effect and most importantly what are we going to do next
specifically which credit card am i switching to for earning at restaurants
the changes don’t take effect immediately so I have a little time to
figure out which card I’m going to use for travel but dining at restaurants is
something I do pretty much every day and I can tell you right now I’m not going
to keep using the uber visa card if you’re new around here my name is Dave
Hanson and I’m always looking for ways to maximize benefits on credit cards
while minimizing the amount of effort and thought that goes into it and really
not having to change anything that you would normally do to be able to maximize
those benefits you’re not gonna find any affiliate links on my website unlike
most people who review credit cards whether it be on blogs or YouTube or
wherever all of them are incentivized to
recommend cards I am not at all I make my money as an investor and if you want
to know more about that I’ve got another YouTube channel for you ding and even if
you follow me there please also subscribe here because this is the place
that I can put stuff that doesn’t really fit on Dumb Money whether it’s
information about credit cards which seems to have found a real audience I
think half of my subscribers now are from the
Apple Card video that I made to subscribe and I hope to see you back for another
one with that other way let’s talk about this uber visa card
the biggest change and the change that makes this card kind of
worthless in my opinion is that instead of being a cash back card this card is
now paying you something they like to call Uber Cash don’t be confused
Uber cash is not cash it is credits for uber rides here’s a quick summary of
everything else that’s changing the restaurant category is going from four
percent to 3 percent Travel is still 3% they’re bumping uber rides from 2
percent up to 5 percent they’re getting rid of the 2 percent category for online
purchases and everything else is still going to be 1 percent but again I can’t
emphasize this enough you’re not earning cashback you’re earning credit towards
uber rides so even when you earn and eventually use that credit for a free
ride on uber you’re not going to be able to earn at the highest rate for that
ride I hate it when credit cards do that other things that are changing with the
card they’re getting rid of the $50 annual credit they give you for
streaming services that’s kind of a bummer they’re also getting rid of
pretty much all of your shopping perks that includes price protection purchase
protection if something gets lost or damaged extended warranty return
protection is that it I think that’s it that’s pretty much everything there is
and don’t forget you’re no longer getting cash back I can’t repeat that
enough so when is this happening if you don’t yet have an uber card it’s
effective immediately if you already have an uber visa check your email check
your spam folder the date that this card is switching over will vary depending on
when you got the card for me it’s happening in February of 2020 I’ve heard
from a lot of viewers that they have until May of 2020 if you’re one of those
lucky you but it’s never too early to prepare and I’ve rounded up the absolute
best replacement cards and I found one that actually beats 4% and has no annual
fee so stay tuned or jump to this time so what now today I’m specifically
focusing on which card to get for cash back at restaurants I don’t have any
travel that I have to book immediately I have until February until these new
benefits kick in so I have a little bit of time there but I eat at restaurants
all the time and so it’s kind of an emergency
I’ve got to find a card right now so here are the contenders we’re trying to
beat four percent cash back I found one with five times earnings in
the restaurant category it’s the Citi Prestige card it has a hefty 495 dollar
annual fee then there’s the American Express gold card
it offers four times points in the dining category it has a two hundred and
fifty dollar annual fee then there are a couple varieties of cards from Capital
One the Savor card is a ninety five dollar annual fee that pays four percent
cash back for restaurants and the Savor One card is a no annual fee card that
pays three percent cash back at restaurants a lot of people have asked
about the Wells Fargo Propel American Express card it’s a no annual fee card
it pays three percent cash back at restaurants another popular card is the
Chase Sapphire Reserve card it gives you three times as many points in the
restaurant category and comes with a four hundred and fifty dollar annual fee
and finally the Bank of America cash rewards card it is another three percent
cash back card with no annual fee that is a ton of cards to consider I’m going
to do a deep dive on the pros and cons of each and if that sounds completely
boring to you feel free to skip ahead to this time right here I’ll tell you which
card I’m going with but if you want to know why let’s dig into it for each card
I’m going to show you earning potential based on how much money you spend and
I’m gonna plot it on a graph that looks like this this is the card to beat this
is the old Uber card and you can see as you spend more money you earn more
rewards the best card for cash back at restaurants really kind of depends on
how much money you’ve spent personally at restaurants and that also includes
takeout and delivery and usually bars so think about how much you spend and look
for that spot on the graph if you spend $5,000 a year you’ll want to look there
if you spend $10,000 a year you’ll want to look there so let’s get started with
the Citi Prestige card and it seems like it’s going to be the winner because it
has five times earnings at restaurants unfortunately Citi’s Thank You points
are only worth a half a cent per point when you redeem them for cash with this
card you’re essentially earning two and a half percent cash back you can redeem
for travel but you have to book your travel on the Citi Thank You website but
you can actually redeem for one point two five cents for travel on their
website if you get a companion card that’s the Citi Premier card it’s an
additional ninety five dollar annual fee but that gives you an effective five
point two five percent cash back on your rest
purchases that sounds great let’s put it on the chart so you can see the black
line is what you would have earned with Uber to have both of those cards to
maximize your earning potential you’re going to be spending five hundred and
ninety dollars a year in annual fees that’s if you redeem for travel on their
website at the 5.25% that’s the Green Line even if you spend fifteen thousand
dollars a year you do not even come close to catching up with that old Uber
card and if you redeem for cash that’s the yellow line they’re not looking good
I made a whole video about how annual fees kill your cash back earning
potential after you watch this video you might want to check that one out so even
though five times earnings at restaurants sounds great once you factor
in that annual fee it’s not so great we can do better let’s look at the gold
card from American Express it is a $250 a year annual fee that is way better
than Citibank’s four hundred and ninety five dollar fee and on the gold card
from Amex you earn four times member rewards points and member rewards points
can be redeemed for zero point six cents per point but you can actually redeem
those Amex points for more you can redeem them for one point two five cents
per point if you get a very special card called the American Express Platinum
Card but not just the normal one you have to get it through Schwab brokerage
of course that card has a hefty five hundred and fifty dollar annual fee but
you get to redeem those points for 1.25 cents per point let’s put it on the
chart and as you can see after paying those combined eight hundred dollars of
annual fees every year it doesn’t really pay to have this card if you’re using it
for restaurant cash back I will say that the Platinum Card at five hundred and
fifty dollars does have some other perks that you may find value in such as gold
status at both Bonvoy and at Hilton hotels and VIP status on Uber and
access to the Centurion lounge at airports and also Priority Pass in a
bunch of features so if you find that valuable and you have this card anyway
it is kind of nice to be able to cash in those points at one point to five cents
but as far as a simple way to earn the most cash back at restaurants we can do
better maybe we can do it with the Savor card from Capital One the Savor card is
a four percent cash back card it has a lower annual fee of only ninety five
dollars there are actually two varieties of the Savor card
the Savor Rewards card $95 4% or the Savor One card zero annual fee 3%
cashback the only way to know which one’s better is to look at the chart and
as you can see neither of these quite pay as much as the old uber card did I
really hate that they changed the uber card program but this does pay solid
cash back and depending on how much you spend you may do better off not paying
the annual fee if you spend less than $9,000 at restaurants you’ll come out
ahead or if you spend more than $9,000 a year at restaurants pay the annual fee
and you’ll come out ahead their charts are so much fun aren’t they
next we’re gonna look at the Wells Fargo Propel card this is an American Express
card that has no annual fee it pays three percent back at restaurants and I
actually really like this card because it also pays three percent back and a
bunch of other categories that are useful like airfare hotels car rentals
streaming services there are more rental cars and gas that’s a lot of really
useful categories paying three percent cash back
this is a really good card let’s see how it compares and we kind of already know
how it compares because it is the same line as the Savor One card the one
without the annual fee both of those no annual fee three percent cashback so
that’s a really good card definitely one that I would consider but stay with me
because we have a couple more in this three times earning category and you’re
gonna be surprised at least I think so let’s look at the Chase Sapphire Reserve
card this card is very popular it’s part of what credit card nerds like to call
the chase trifecta there’s also an American Express trifecta there’s a city
trifecta I really don’t go for any of those because it goes against everything
that I think about paying annual fees but recently Chase changed their
structure and you no longer have to have the companion card to be able to redeem
at a higher rate so with the Chase Sapphire Reserve card you earn three
times points those are Ultimate Rewards points those are worth a penny a point
when you redeem for cash or if you redeem for travel on their website you
get one point five cents per point so that gives you an effective four point
five percent cashback well not really cashback you get four point five percent
redeemed for travel or three percent if you redeemed for cash but that sounds
good so let’s look at the chart and as you see that 450 dollar annual
he ate up all of your earning potential yet again if you redeem for cash you
don’t even cover your annual fee until you’ve spent fifteen thousand dollars at
restaurants and if you redeem for travel you break even at ten thousand dollars
and then start making your 4.5% but again have to redeem for travel on their
website so again if there’s something else about that card that you find value
in it might be worth the annual fee but when it comes to simply earning cashback
at restaurants we can do better which brings us to our last card the Bank of
America cash rewards card I almost didn’t even consider this card because
we already have a couple of other examples of three percent cash back
cards with no annual fee but there’s something different about this Bank of
America card and it’s definitely not for everyone but if you have a checking
account or a savings account with money in it at Bank of America or an
investment account at Merrill which is now a part of the Bank of America family
they have something called what do they call it premiere rewards preferred
rewards that essentially multiplies how much you earn cash back using this card
and it actually gets really good on their gold tier you get 3.75 percent
cash back on their platinum tier you get 4.5 percent cash back and on their
platinum honors tier you get five point two five percent cash back I spent a lot
of time looking at credit cards and I have not found a single other credit
card that gives more than five percent cash back when you use it at restaurants
now there is a cap on your earnings they only count the first $2,500 you spend
each quarter but if you can reach that 5.25% level you’re actually coming out
way ahead and again this is definitely not for everybody to reach these tiers
you have to have a lot of money in the bank for the gold level you have to have
$20,000 in the bank platinum $50,000 and platinum honors $100,000 no joke that is
a lot so if you can find a way to have that much money in an account with Bank
of America other than robbing the bank don’t do that but you can earn at these
high rates and let’s take a look at it on the chart again the black line is the
uber line that is the price to beat and we’ve beat it in both the platinum and
platinum honors version of this cash rewards card that is a pretty chart I
really didn’t think I’d find that pays more than 5% cash back
particularly one with no annual fee let’s now throw all of the cards on put
all the ones I’m not really considering in grey and you see that the Bank of
America cards pay way more than the other cards that green line there is a
three-way tie between the Bank of America card with no multiplier and also
the saver 1 card and also the Wells Fargo Propel card from American Express
the pink line is the Savor rewards card that pays 4% cash back with the 95
dollar annual fee it holds up pretty well especially if you spend more than
nine thousand dollars a year at restaurants but you really can’t beat
these Bank of America cards if you have cash in the bank or if you have maybe an
old retirement account sitting at some other institution and you don’t really
care where that money sits and it’s just invested in an ETF or something that
Merrill will also have access to you can earn some money by moving it over
clearly that is not an option for everyone but it is the highest rate I
found and definitely something worth considering and now welcoming back all
of the people who fast forwarded to this point it’s time for some conclusions
first off paying annual fees absolutely kills your ability to earn cash back
plain and simple I can’t emphasize that enough I made a whole video about that
after this you can watch that second if you have money in the bank anywhere from
twenty thousand to a hundred thousand dollars and you want to absolutely earn
the most cash back using a credit card the Bank of America cash rewards card
with their preferred rewards program where you can earn up to five point two
five percent cash back at restaurants amazing if that’s not attainable there’s
just one thing to consider how much money do you spend each year at
restaurants and bars if you spend more than nine thousand dollars per year you
should get the Capital One Savor rewards card that card has a ninety five dollar
annual fee but you come out ahead if you spend more than nine thousand dollars a
year if you spend less than nine thousand dollars a year you actually
have a few different options my favorite is the Propel card from Wells Fargo it’s
3% cashback at restaurants and bars and a whole bunch of other categories I can
never remember all these there’s so many of them it’s dining airfare hotels
rent cars streaming services gas and one more
ride shares maybe a few others check their website that one’s a good one
especially if you already have a Wells Fargo account if you don’t and you want
a capital one card the Savor one card is there no annual fee 3% cash back card
and that’s it my recommendation for how to maximize your cashback at restaurants
now that this uber card is essentially worthless next up I’m gonna make a video
about how to maximize your benefits for travel
that’s airfare and hotels you do not want to miss that video if you haven’t
already hit the subscribe button turn on notifications I’m going to be doing the
research and making my suggestions in the next week or so and then tell that
video thank you guys so much for watching if anything in this video was
useful to you or helpful or entertaining or if you just think it’s kind of funny
that some guy on the internet can talk about credit cards as much as I do
hit that like button it lets YouTube know that this was worth watching it
lets other people know that they might want to check it out and tell the next
video maybe watch one of these I’m Dave Hanson I’ll see you next time

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  1. Dave, they killed our favorite card. That upsets me. Now with the new program that card is a piece of junk. I will cancel it. Dave I have a comment about your video. If you have 20k or 50k or 100k on a Bank of America savings account to get that extra % of cash back on their credit card you are loosing money because they do not pay almost any interest in saving accounts. You would make a lot more by having your money parked in an online saving account which pays close to 2% APR without having to spend a dime. According to your video I think the Propel would now be the king ( considering the 3% back on a lot more categories )

  2. Dave, it is great that you can eat out almost every day at restaurants but, what about your health. The food although it may be good to excellent it is also not very healthy. There is nothing better than a home cook healthy meal. Also just think about your arteries becoming clogged with all that fat and cholesterol which leads you to coronary heart disease. Then when you have your first heart attack who is going to give us these great and informative videos. We need you for your great and logical reviews to help all of the inept people like myself. That said what is a card that I can use to get good cashback since I do not go out to restaurants as you do. Keep up the good work.

  3. Great video Dave! I loved that you backed all up with real graphs, much better than other videos where they just say: if you spend "a lot" of money… Thanks for the effort.
    In my opinion, the Wells Fargo cc is the best (because of the other benefits), I'm thinking of getting it when the Uber cc benefits are over. The BoA cards seem perfect if you have that amount in savings. However, the interest you get is not competitive (0.04 to 0.06%) and does not justify moving money from a money market account earning a decent APY just for an extra percent in restaurants…That's what I think…
    Looking forward to your next video!

  4. I was so excited to hear about the UBER card from your video. I knew you'd do a follow-up video since they are knee-capping us now…you have a subscriber in me either way!

  5. I haven’t got the Uber email yet. (Already checked spam). Hoping these restrictions don’t happen to me 😭

  6. The Chase AARP credit card also have 3X on dining and no annual fee. Anyone can get it so you don’t have to be a senior to get the AARP card

  7. The uber card is no longer good fit cashback. There are other cards better. Wells Fargo propel and Amex green card

  8. Thanks so much for putting out this updated video. I was just getting ready to sign up for that Uber cash back card!! Glad to also see that my Bank of America cash rewards card made your listing.

  9. Hi Dave, awesome video once again! In spite of you repeatedly hinting to skip to14:19, I didn't have the heart to do it. How could I miss your entire video? I have a couple of things to share. You are right in pointing out that BOA cash rewards would be the best card after Uber VISA for cash back on dining. But the boost of 25% to 75% in cash back obtained from being enrolled in Preferred Rewards is not worth the amount of money you will need to invest ($20,000 to $100,000) to obtain that status and their savings interest rate is ridiculously low. You are better off investing into a savings account from Discover or HSBC Direct Savings account (stocks, mutual funds still better, although thats a completely different topic for discussion) to earn an [email protected]% or 2.05%APY making about $410 to $2050 per year, which is way higher than the additional cash back boost. I still say that BOA is the best card right now for dining because of another factor which you haven't mentioned in your video. If you have a checking account with BOA (without even being enrolled into Preferred Rewards) you can get additional 10% boost, which makes the cash back 3.3% on dining or any other category which you may choose (categories can be changed once every month if needed). Additionally it offers 2% on groceries and wholesale clubs which can actually become 2.2% with a checking account. Uber VISA with 4% back on dining was undoubtedly the best, but 3.3% is not that bad (without Preferred Rewards) with no better options around. I hope you agree with me!

    @Alain Gonzalez has also pointed at the low APY from BOA, I read his comment after I posted mine!

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