This post comes from Christine DiGangi at partner site Credit.com.
The credit card rewards industry is a competitive space, where issuers try to offer the most attractive loyalty programs as a way of getting more consumers to use their products. There are a lot of similar rewards out there — cash back, redeemable points, airline miles — but Wells Fargo just added another level: cash rewards via ATM.
Cash-back credit cards work in many ways. You can get a statement credit, “erase” purchases from your transaction activity, ask for a paper check, redeem the cash for gift cards, send the money to your checking account via direct deposit and so on. With the paper check and direct deposit, you may technically get that reward at an ATM when you withdraw funds from that account, but Wells Fargo’s program is simpler than that.
The San Francisco-based bank announced last week that cardholders participating in the Wells Fargo Rewards Program could withdraw their rewards in $20 increments from more than 12,500 bank-affiliated ATMs across the country. Wells Fargo says it is “the first major U.S. financial services provider to introduce this functionality,” and it’s certainly an attractive one.
As with many banks’ rewards programs, Wells Fargo’s has a diverse set of offerings encompassing the travel and retail markets. Earning and using them varies by card and qualifying purchases, so it’s important to research the card’s perks before applying.
Rewards credit cards can be complex products: They’re often difficult to qualify for, so you’ll want to check your credit before applying to minimize your risk of rejection, and they tend to carry higher interest rates than other credit cards. You can get a free credit report snapshot every 30 days on Credit.com.
Generally, if you’re using your credit card to carry a balance from month to month, a rewards credit card is not your best option. Many rewards cards also carry an annual fee, so you need to do a little math to ensure you’re getting enough value to make the fee worth it.