Sometimes 'new' isn't better.
Written: Aug 03 '01
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Pros: Unlimited rebates.
Cons: You'd have to buy lots of cars to use a large rebate.
The Bottom Line: If you can't get the old card and you like GM products, the new one is okay.
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| bceaglesfan's Full Review: General Motors MasterCard (Household Bank) |
The ‘NEW” GM card
If you have the old-style GM blue card (mine is black though they now call it blue), GM (or rather, its bank) wants you to switch to its new card. Do you think they want you to switch because it’s better for you or better for them? Exactly!
How it works if you want to buy a car
I got my old-style, now called Blue GM card in 1992 and by 1999, I was able to save $4500.00 off the negotiated price of a 1999 Pontiac Grand Am. Back then, $3500.00 was the maximum that you could save. This was calculated at $500.00 per year for seven years. In addition, GM was offering an additional $1000.00 in credits as a special offer. This was a major savings, almost 25% off the price that I had haggled to get to.
If you already have one, the GM blue card is still accepted at stores but I don’t think that GM is taking applications for it any longer. GM has changed the policy since 1999 and not to the benefit of the consumer. Now, the $3500.00 limit has been removed. There is now no limit to the amount of rebate which was capped at $500.00 per year (and still is with the blue card).
BUT there is a maximum redemption allowance per vehicle type. For example, the maximum GM rebate dollars that you can apply to a 2001 Chevy Cavalier is $1500.00; to a 2001 Cadillac Deville it’s $2500.00; I did not see any cars that had a $3500.00 or greater redemption allowance at this time. So, while you can accumulate more credits, you’d have to buy more cars to use them up.
How it works if you don’t want to buy a car
GM has partnered with businesses like Marriott, Alamo rent-a-car, Spiegel etc. You can use your rebate as partial payment on their products and in addition, you will often receive a discount.
Online Services
You can check your balance, your accumulated rebate and your statements online.
Just the facts, ma’am
There is no annual fee.
The earnings are valid for seven years.
The current variable interest rate is – ouch – 18.99%; this is calculated based on taking the highest prime rate listed in the Wall Street Journal plus 9.99% and never to be less than 16.9%. I think these credit card rates are outrageous especially since the same banks are paying us about 1.5 % to use our money.
There is a late fee of $29.00.
The cash advance fee is 3%.
You get 5% back on every purchase.
GM customer care number is 800-771-7363.
Summary
If you have the old-style card, I strongly recommend that you read all of the fine print about the new card before you decide to switch. I’m keeping the old one as long as they let me.
Thanks for reading.
Recommended:
Yes
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bceaglesfan
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Member: Mike S
Location: 25 miles Northwest of Boston
Reviews written: 25
Trusted by: 108 members
About Me:
Enjoy epinions, family, friends, not in that order, ok maybe in that order.
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