🔍
Uber Card Changes — best alternative card for restaurants - YouTube
Channel: Dave Hanson / Hey there, Dave here.
[0]
Hey there, Dave here. This is a sad day
for self-proclaimed credit card nerds
[5]
like myself. This is a video that I
really did not want to have to make but
[8]
it turns out that my all-time favorite
credit card for cash back at restaurants
[13]
really was too good to be true of course
I'm talking about my Uber Visa card this
[18]
is the card that pays four percent back
well at least it used to pay four
[22]
percent back at restaurants three
percent on airfare in hotels and two
[26]
percent for online purchases one percent
everywhere else this is a great card but
[30]
none of that is true anymore a couple of
days ago comments started pouring in on
[35]
my youtube videos I feel kind of bad
because I've been raving about this card
[38]
in my credit card videos it really was
an amazing card I've gotten a lot of
[42]
comments from people who have signed up
for the card only to find out that it is
[47]
changing in fact it was actually the
comments that alerted me to these
[50]
changes
clearly I check my comments on YouTube
[53]
more often than I check my personal
email but when I did login and check my
[57]
email there it was you gotta love
marketing putting a positive spin on a
[63]
very negative change so in this video
we're going to dive into what exactly
[66]
changed when those changes are taking
effect and most importantly what are we
[71]
going to do next
specifically which credit card am i
[73]
switching to for earning at restaurants
the changes don't take effect
[77]
immediately so I have a little time to
figure out which card I'm going to use
[80]
for travel but dining at restaurants is
something I do pretty much every day and
[85]
I can tell you right now I'm not going
to keep using the uber visa card if
[89]
you're new around here my name is Dave
Hanson and I'm always looking for ways
[92]
to maximize benefits on credit cards
while minimizing the amount of effort
[97]
and thought that goes into it and really
not having to change anything that you
[101]
would normally do to be able to maximize
those benefits you're not gonna find any
[105]
affiliate links on my website unlike
most people who review credit cards
[108]
whether it be on blogs or YouTube or
wherever
[112]
all of them are incentivized to
recommend cards I am not at all I make
[116]
my money as an investor and if you want
to know more about that I've got another
[119]
YouTube channel for you ding and even if
you follow me there please also
[124]
subscribe here because this is the place
that I can put stuff that doesn't really
[127]
fit on Dumb Money whether it's
information about credit cards which
[130]
seems to have found a real audience I
think
[133]
half of my subscribers now are from the
Apple Card video that I made to subscribe
[138]
and I hope to see you back for another
one with that other way let's talk about
[142]
this uber visa card
the biggest change and
[144]
the change that makes this card kind of
worthless in my opinion is that instead
[149]
of being a cash back card this card is
now paying you something they like to
[153]
call Uber Cash don't be confused
Uber cash is not cash it is credits for
[159]
uber rides here's a quick summary of
everything else that's changing the
[162]
restaurant category is going from four
percent to 3 percent Travel is still 3%
[167]
they're bumping uber rides from 2
percent up to 5 percent they're getting
[171]
rid of the 2 percent category for online
purchases and everything else is still
[175]
going to be 1 percent but again I can't
emphasize this enough you're not earning
[179]
cashback you're earning credit towards
uber rides so even when you earn and
[184]
eventually use that credit for a free
ride on uber you're not going to be able
[189]
to earn at the highest rate for that
ride I hate it when credit cards do that
[192]
other things that are changing with the
card they're getting rid of the $50
[195]
annual credit they give you for
streaming services that's kind of a
[198]
bummer they're also getting rid of
pretty much all of your shopping perks
[201]
that includes price protection purchase
protection if something gets lost or
[205]
damaged extended warranty return
protection is that it I think that's it
[209]
that's pretty much everything there is
and don't forget you're no longer
[213]
getting cash back I can't repeat that
enough so when is this happening if you
[217]
don't yet have an uber card it's
effective immediately if you already
[220]
have an uber visa check your email check
your spam folder the date that this card
[224]
is switching over will vary depending on
when you got the card for me it's
[228]
happening in February of 2020 I've heard
from a lot of viewers that they have
[231]
until May of 2020 if you're one of those
lucky you but it's never too early to
[236]
prepare and I've rounded up the absolute
best replacement cards and I found one
[240]
that actually beats 4% and has no annual
fee so stay tuned or jump to this time
[246]
so what now today I'm specifically
focusing on which card to get for cash
[250]
back at restaurants I don't have any
travel that I have to book immediately I
[254]
have until February until these new
benefits kick in so I have a little bit
[257]
of time there but I eat at restaurants
all the time and so it's kind of an
[261]
emergency
I've got to find a card right now so
[263]
here are the contenders we're trying to
beat four percent cash back
[267]
I found one with five times earnings in
the restaurant category it's the Citi
[271]
Prestige card it has a hefty 495 dollar
annual fee then there's the American
[277]
Express gold card
it offers four times points in the
[280]
dining category it has a two hundred and
fifty dollar annual fee then there are a
[283]
couple varieties of cards from Capital
One the Savor card is a ninety five
[287]
dollar annual fee that pays four percent
cash back for restaurants and the Savor One
[291]
card is a no annual fee card that
pays three percent cash back at
[295]
restaurants a lot of people have asked
about the Wells Fargo Propel American
[299]
Express card it's a no annual fee card
it pays three percent cash back at
[303]
restaurants another popular card is the
Chase Sapphire Reserve card it gives you
[307]
three times as many points in the
restaurant category and comes with a
[310]
four hundred and fifty dollar annual fee
and finally the Bank of America cash
[315]
rewards card it is another three percent
cash back card with no annual fee that
[320]
is a ton of cards to consider I'm going
to do a deep dive on the pros and cons
[324]
of each and if that sounds completely
boring to you feel free to skip ahead to
[328]
this time right here I'll tell you which
card I'm going with but if you want to
[332]
know why let's dig into it for each card
I'm going to show you earning potential
[336]
based on how much money you spend and
I'm gonna plot it on a graph that looks
[339]
like this this is the card to beat this
is the old Uber card and you can see as
[343]
you spend more money you earn more
rewards the best card for cash back at
[347]
restaurants really kind of depends on
how much money you've spent personally
[350]
at restaurants and that also includes
takeout and delivery and usually bars so
[355]
think about how much you spend and look
for that spot on the graph if you spend
[359]
$5,000 a year you'll want to look there
if you spend $10,000 a year you'll want
[363]
to look there so let's get started with
the Citi Prestige card and it seems like
[366]
it's going to be the winner because it
has five times earnings at restaurants
[370]
unfortunately Citi's Thank You points
are only worth a half a cent per point
[375]
when you redeem them for cash with this
card you're essentially earning two and
[378]
a half percent cash back you can redeem
for travel but you have to book your
[382]
travel on the Citi Thank You website but
you can actually redeem for one point
[386]
two five cents for travel on their
website if you get a companion card
[390]
that's the Citi Premier card it's an
additional ninety five dollar annual fee
[394]
but that gives you an effective five
point two five percent cash back on your
[399]
rest
purchases that sounds great let's put it
[401]
on the chart so you can see the black
line is what you would have earned with
[404]
Uber to have both of those cards to
maximize your earning potential you're
[408]
going to be spending five hundred and
ninety dollars a year in annual fees
[412]
that's if you redeem for travel on their
website at the 5.25% that's the Green
[417]
Line even if you spend fifteen thousand
dollars a year you do not even come
[421]
close to catching up with that old Uber
card and if you redeem for cash that's
[425]
the yellow line they're not looking good
I made a whole video about how annual
[429]
fees kill your cash back earning
potential after you watch this video you
[432]
might want to check that one out so even
though five times earnings at
[435]
restaurants sounds great once you factor
in that annual fee it's not so great we
[440]
can do better let's look at the gold
card from American Express it is a $250
[444]
a year annual fee that is way better
than Citibank's four hundred and ninety
[448]
five dollar fee and on the gold card
from Amex you earn four times member
[454]
rewards points and member rewards points
can be redeemed for zero point six cents
[458]
per point but you can actually redeem
those Amex points for more you can
[462]
redeem them for one point two five cents
per point if you get a very special card
[467]
called the American Express Platinum
Card but not just the normal one you
[472]
have to get it through Schwab brokerage
of course that card has a hefty five
[476]
hundred and fifty dollar annual fee but
you get to redeem those points for 1.25
[480]
cents per point let's put it on the
chart and as you can see after paying
[484]
those combined eight hundred dollars of
annual fees every year it doesn't really
[489]
pay to have this card if you're using it
for restaurant cash back I will say that
[493]
the Platinum Card at five hundred and
fifty dollars does have some other perks
[496]
that you may find value in such as gold
status at both Bonvoy and at
[501]
Hilton hotels and VIP status on Uber and
access to the Centurion lounge at
[506]
airports and also Priority Pass in a
bunch of features so if you find that
[510]
valuable and you have this card anyway
it is kind of nice to be able to cash in
[514]
those points at one point to five cents
but as far as a simple way to earn the
[518]
most cash back at restaurants we can do
better maybe we can do it with the Savor
[523]
card from Capital One the Savor card is
a four percent cash back card it has a
[528]
lower annual fee of only ninety five
dollars there are actually two varieties
[532]
of the Savor card
the Savor Rewards card $95 4% or the
[537]
Savor One card zero annual fee 3%
cashback the only way to know which
[542]
one's better is to look at the chart and
as you can see neither of these quite
[546]
pay as much as the old uber card did I
really hate that they changed the uber
[550]
card program but this does pay solid
cash back and depending on how much you
[554]
spend you may do better off not paying
the annual fee if you spend less than
[557]
$9,000 at restaurants you'll come out
ahead or if you spend more than $9,000 a
[562]
year at restaurants pay the annual fee
and you'll come out ahead their charts
[566]
are so much fun aren't they
next we're gonna look at the Wells Fargo
[569]
Propel card this is an American Express
card that has no annual fee it pays
[575]
three percent back at restaurants and I
actually really like this card because
[579]
it also pays three percent back and a
bunch of other categories that are
[582]
useful like airfare hotels car rentals
streaming services there are more rental
[590]
cars and gas that's a lot of really
useful categories paying three percent
[594]
cash back
this is a really good card let's see how
[597]
it compares and we kind of already know
how it compares because it is the same
[601]
line as the Savor One card the one
without the annual fee both of those no
[606]
annual fee three percent cashback so
that's a really good card definitely one
[610]
that I would consider but stay with me
because we have a couple more in this
[613]
three times earning category and you're
gonna be surprised at least I think so
[617]
let's look at the Chase Sapphire Reserve
card this card is very popular it's part
[621]
of what credit card nerds like to call
the chase trifecta there's also an
[626]
American Express trifecta there's a city
trifecta I really don't go for any of
[630]
those because it goes against everything
that I think about paying annual fees
[633]
but recently Chase changed their
structure and you no longer have to have
[637]
the companion card to be able to redeem
at a higher rate so with the Chase
[640]
Sapphire Reserve card you earn three
times points those are Ultimate Rewards
[645]
points those are worth a penny a point
when you redeem for cash or if you
[649]
redeem for travel on their website you
get one point five cents per point so
[653]
that gives you an effective four point
five percent cashback well not really
[656]
cashback you get four point five percent
redeemed for travel or three percent if
[660]
you redeemed for cash but that sounds
good so let's look at the chart and as
[664]
you see that 450 dollar annual
he ate up all of your earning potential
[669]
yet again if you redeem for cash you
don't even cover your annual fee until
[673]
you've spent fifteen thousand dollars at
restaurants and if you redeem for travel
[677]
you break even at ten thousand dollars
and then start making your 4.5% but
[683]
again have to redeem for travel on their
website so again if there's something
[686]
else about that card that you find value
in it might be worth the annual fee but
[690]
when it comes to simply earning cashback
at restaurants we can do better which
[695]
brings us to our last card the Bank of
America cash rewards card I almost
[699]
didn't even consider this card because
we already have a couple of other
[703]
examples of three percent cash back
cards with no annual fee but there's
[707]
something different about this Bank of
America card and it's definitely not for
[711]
everyone but if you have a checking
account or a savings account with money
[715]
in it at Bank of America or an
investment account at Merrill which is
[719]
now a part of the Bank of America family
they have something called what do they
[722]
call it premiere rewards preferred
rewards that essentially multiplies how
[727]
much you earn cash back using this card
and it actually gets really good on
[732]
their gold tier you get 3.75 percent
cash back on their platinum tier you get
[737]
4.5 percent cash back and on their
platinum honors tier you get five point
[742]
two five percent cash back I spent a lot
of time looking at credit cards and I
[746]
have not found a single other credit
card that gives more than five percent
[750]
cash back when you use it at restaurants
now there is a cap on your earnings they
[755]
only count the first $2,500 you spend
each quarter but if you can reach that
[759]
5.25% level you're actually coming out
way ahead and again this is definitely
[764]
not for everybody to reach these tiers
you have to have a lot of money in the
[768]
bank for the gold level you have to have
$20,000 in the bank platinum $50,000 and
[773]
platinum honors $100,000 no joke that is
a lot so if you can find a way to have
[779]
that much money in an account with Bank
of America other than robbing the bank
[783]
don't do that but you can earn at these
high rates and let's take a look at it
[787]
on the chart again the black line is the
uber line that is the price to beat and
[791]
we've beat it in both the platinum and
platinum honors version of this cash
[796]
rewards card that is a pretty chart I
really didn't think I'd find
[800]
that pays more than 5% cash back
particularly one with no annual fee
[805]
let's now throw all of the cards on put
all the ones I'm not really considering
[808]
in grey and you see that the Bank of
America cards pay way more than the
[813]
other cards that green line there is a
three-way tie between the Bank of
[816]
America card with no multiplier and also
the saver 1 card and also the Wells
[821]
Fargo Propel card from American Express
the pink line is the Savor rewards card
[825]
that pays 4% cash back with the 95
dollar annual fee it holds up pretty
[830]
well especially if you spend more than
nine thousand dollars a year at
[833]
restaurants but you really can't beat
these Bank of America cards if you have
[837]
cash in the bank or if you have maybe an
old retirement account sitting at some
[842]
other institution and you don't really
care where that money sits and it's just
[846]
invested in an ETF or something that
Merrill will also have access to you can
[851]
earn some money by moving it over
clearly that is not an option for
[855]
everyone but it is the highest rate I
found and definitely something worth
[859]
considering and now welcoming back all
of the people who fast forwarded to this
[863]
point it's time for some conclusions
first off paying annual fees absolutely
[868]
kills your ability to earn cash back
plain and simple I can't emphasize that
[872]
enough I made a whole video about that
after this you can watch that second if
[877]
you have money in the bank anywhere from
twenty thousand to a hundred thousand
[881]
dollars and you want to absolutely earn
the most cash back using a credit card
[886]
the Bank of America cash rewards card
with their preferred rewards program
[892]
where you can earn up to five point two
five percent cash back at restaurants
[897]
amazing if that's not attainable there's
just one thing to consider how much
[901]
money do you spend each year at
restaurants and bars if you spend more
[905]
than nine thousand dollars per year you
should get the Capital One Savor rewards
[909]
card that card has a ninety five dollar
annual fee but you come out ahead if you
[914]
spend more than nine thousand dollars a
year if you spend less than nine
[917]
thousand dollars a year you actually
have a few different options my favorite
[921]
is the Propel card from Wells Fargo it's
3% cashback at restaurants and bars and
[926]
a whole bunch of other categories I can
never remember all these there's so many
[930]
of them it's dining airfare hotels
rent
[933]
cars streaming services gas and one more
ride shares maybe a few others check
[941]
their website that one's a good one
especially if you already have a Wells
[944]
Fargo account if you don't and you want
a capital one card the Savor one card is
[948]
there no annual fee 3% cash back card
and that's it my recommendation for how
[953]
to maximize your cashback at restaurants
now that this uber card is essentially
[958]
worthless next up I'm gonna make a video
about how to maximize your benefits for
[963]
travel
that's airfare and hotels you do not
[966]
want to miss that video if you haven't
already hit the subscribe button turn on
[970]
notifications I'm going to be doing the
research and making my suggestions in
[974]
the next week or so and then tell that
video thank you guys so much for
[977]
watching if anything in this video was
useful to you or helpful or entertaining
[983]
or if you just think it's kind of funny
that some guy on the internet can talk
[986]
about credit cards as much as I do
hit that like button it lets YouTube
[989]
know that this was worth watching it
lets other people know that they might
[993]
want to check it out and tell the next
video maybe watch one of these I'm Dave
[997]
Hanson I'll see you next time
Most Recent Videos:
You can go back to the homepage right here: Homepage