Posted by Chuck on March 20, 2017
Credit Cards alliant credit union

Published on March 20th, 2017 | by Chuck

29

Alliant 2.5% Credit Card to Rollout Nationwide in April

Alliant recently lauched a credit card that offers 2.5% flat cash back on all purchases and no foreign transaction fees. There is a $59 annual fee, waived the first year. The first year  also gets a bonus cash back rate of 3% on all purchases instead of 2.5%.

Currently, the card is only available via phone application or by upgrading an existing card. And it’s only available to Alliant members.

Starting in April it will become available for all, as heard by Milestomemories from a bank representative.

The card currently is in a “soft launch” for select Alliant members, but it will be available to all starting in April (just a couple weeks away!).

The truth is that it’s easy to become a member by making a $10 donation. That said, to save the $10 cost, non-members can simply wait a few weeks and apply when it goes public. I imagine many people are considering this card; I certainly am.

It seems likely that once it rolls out fully there will be an online application link as well, but that’s just speculation on my part.

It’s really amazing how the market keeps pushing up the stakes. Only a few short years ago, getting 2% was difficult; now the bar is getting pushed up to 2.5% with the Allliant card and the USAA card.



29 Responses to Alliant 2.5% Credit Card to Rollout Nationwide in April

  1. Jonathan says:

    “There is a $59 annual fee, waived the first year”

    OMG! This should say “which is waived”. You totally blew it, Chuck! Im unsubscribing and opening an FTC complaint. Thanks Obama!

    …otherwise this is awesome news. 😉 Keep it coming, sir.

  2. Ben says:

    So, (presumably) no sign-up bonus, and 3% in year one. In year 2 onwards, you’d have to be making ~$12k in otherwise non-bonused spend per year just to break even with a 2% card. This is a tough call for me. Between sign up bonus minimum spends and category bonus spend that’s sorta a high spend to hit.

    • anthonyjh21 says:

      Bigger picture here but that’s actually a good thing from their perspective. They want people who’ll make this their daily driver and not the rest of us who churn.

  3. anthonyjh21 says:

    My fear is Alliant killing this off after some people make it their life mission to scale the hell out of this.

    Obviously it’s in our best interest to maximize the value gained here but at the same time when you see offers like this you know they’re going to attract a lot of unwanted attention in this community.

    I’m sure I’m going against popular sentiment but I hope that Alliant will monitor for abuse so that we can keep this going longer.

    • sirtheta says:

      Yeah, I don’t see any way this isn’t a repeat of the OBC fiasco. It would be better for them if they had one of 3% cash back and annual fee waiver the first year, but we’ll see…

  4. chao says:

    isnt boa travel award with preferred status gives you 2.75% cash back on all purchase?( I know its for travel only) but it does not have AF

    • Treesha says:

      BoA Travel Rewards card is 2.625% if the cardholder is a Platinum Honors (100K+ in assets w BoA/Merrill Lynch) Preferred Rewards client. Really a winner if you qualify.

    • Ben says:

      2.625%. And it’s not cash back, it’s travel. And you have to have $100,000+ with BoA or Merrill Lynch

      • Jeremy says:

        There are ways that make it effectively cash back. Alliant is more simple, but TR has no AF nor FTF.

        • Ben says:

          And how many people are eligible for the highest Preferred Rewards status? For the average person, this isn’t even a discussion.

          • Jeremy says:

            If you have an IRA you can rollover, there is probably a sizeable number that can take advantage of it. However, you are correct, most average people cannot. That being said, the MS community tends to be higher income than average minus students.

          • anthonyjh21 says:

            Even if you have 100k, do you really want to invest the time and energy to make it work? I’m sure there’s people who it would still be worth their time but I suspect the majority of people would be better off with a 2.5% card or in many cases a 2% card like the DCB card. This assumes you don’t already have 100k w/ BoA and meet requirements organically.

            So yeah, I agree, comparing this card to the BoA card is apples to oranges. A better comparison is USAA despite the fact they have membership requirements.

            Sometimes this community suffers from over-thinking and over-complicating and just finding a happy medium with value and moving on with your life. The Alliant card would be ideal for those who spend $12k+ per year and aren’t interested in jumping through hoops or keeping a calendar of to do’s and checklists to ensure they’re maximizing value.

  5. Jake from MSP says:

    I wonder what type of Visa it will be…

    Alliant is going to be losing serious coin on this. There isn’t a single Visa reimbursement rate in the 3% rate

    • Chuck says:

      Well, 2.5% is the real question. Lots of cards have signup bonuses.

    • sirtheta says:

      It’s a Visa Signature.

      I also worry about the long-term health of this card given the very generous signup bonus (no fee, 3%). Judging by Visa’s Interchange Reimbursement Fees, it seems plausible that an interchange fee of 2% could be achieved for this card. In that case, 2.5% and a $59 annual fee means that Alliant has the same break-even point as the consumer (except the situations are reversed, so Alliant gains money at less than $11,800 in spending).

      We’ll find out very soon…

  6. Greg says:

    “It’s really amazing how the market keeps pushing up the stakes. Only a few short years ago, getting 2% was difficult; now the bar is getting pushed up to 2.5% with the Allliant card and the USAA card.”

    The competition is necessary but not sufficient for this – the other half of this is that interest rates are finally rising, so while the big banks will hold on to as much of the spread as they can for as long as they can, but smaller banks hungry for additional volume will be the first ones to pass on the margin to the consumers.

    • Bob says:

      Could you explain that further? I’m not sure I see the connection between interest rates, which are generally speaking applied to bank deposits, and credit card cash back. If Visa or other payment networks started charging higher rates for the interchange fees, then I’d understand the increase in cc cashback rates.

      • Greg says:

        In the primary case, it’s through additional margin on revolving balances. Almost every card now on the market has a floating APR, which means that as the prime rate increases, so does the APR. Which leads to additional profits for the bank. The bank could choose to pocket the whole profit, or it could decide to use some or all of it to attempt to increase signups through lower APRs or through additional perks.

  7. Jake says:

    I’d rather keep my Citi Double Cash Card and not worry about hitting the $12,000 minimum every year. Also, to make the hard pull worth it for the 3%, you would need to wrack up $20,000 in spending in the first year ($200 cash back). Lot of work for a $200 bonus…

  8. MM says:

    This is attractive stuff, particularly for, say, a spouse that has little interest in keeping up on which card they should be using for a given purchase;) That said, unless you’ve either a) exhausted most of the cards with decent signup bonuses and/or b) are a dedicated MSer, the opportunity cost of forgoing other cards with good signup bonuses for this is high. Still, I think this is a great card for the person who doesn’t wanna get deep into the churning game but does want to make their spending work for them. Interesting developments for sure.

  9. Charles says:

    Had an email awhile back expired end of Feb for 35k after 3k spend for Alliant Visa® Platinum Rewards Credit Card. Wonder if you can get that when targeted. Meet requirements then PC to this new card. Sexy card when not working on minimums. Especially the no FTF.

  10. jf says:

    min 10k starting limit, right? and doesn’t look like they are asking for POI???

  11. NewHere says:

    Applied over the phone and got denied due to high number of recent inquiries/new cards (applied for two AmEx this month), so it may worth waiting if you opened any CC in a relatively short time. Hard pull in TU ;(

  12. 5150 says:

    Getting an approval from these guys is like applying for a mortgage.
    You go through the “Lending” department who review and document all aspects of your identity, credit, and income.
    Need to provide pay stubs and ID documents regardless of credit score and other cards you may have.
    These are Newbies in this field and they rely on their Mortgage model.
    BUT, great card and cash back…..

  13. Jay says:

    After talking with a representative, I was told that it requires not only a minimum of $10,000, but also that there have been no approvals for those under a 680 Fico score. Looks like they pull Transunion mainly.

  14. 5150 says:

    Got the card. Love the 3% on everything.

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