A new GM credit card soon will offer richer rewards that do not expire and can be used toward buying a GM car or truck.
The new card from Capital One offers 5% earnings on the first $5,000 worth of net card purchases each year. That’s a reward of $250. After that, consumers could earn an unlimited 2% on all purchases. For example, if you charge another $20,000 one year, you would earn another $400 in rewards toward a purchase or lease of a GM vehicle.
Perhaps most important to big spenders who regularly pay off the credit card each month: Unlike the old GM Card, the new card has no earnings limits on the rewards consumers can accumulate each year.
Rewards can be redeemed for the purchase or lease of a new Chevrolet, Buick, GMC or Cadillac. That includes the Chevy Volt.
Consumers can choose a design for their plastic to reflect their favorite GM brand.
It’s key to know GM employees, retirees, dealers, dealer employees and suppliers cannot combine the credit card rewards on the new GM card with their GM Employee/Friends and Family/GM Supplier discount.
GM will continue to offer a GM Extended Family Card to employees and others who want it. That credit card offers 1% earnings, which can be combined with a GM discount.
There is no expiration of earnings and no annual fee.
“Consumers told us they wanted a straightforward way to earn greater benefits than their current auto rewards card,” said Bill Cilluffo, executive vice president of card partnerships at Capital One.
Cilluffo said the marketing campaign for the new GM Card will be pretty significant in the coming six months or so.
The existing GM Card has about 4 million cardholders, but earnings expire on that older card within seven years and there is a $500 annual earnings cap. With the introduction of the new GM Card, consumers will not be able to acquire the old GM Card.