Review of the GM Flex Card





The GM Flex Card last reviewed on 22nd March 2006



Summary - The GM Flex Card is the second credit card that General Motors have introduced that is a little different from their first card. This card allows you to earn points with the card which can either be used for the purchase or lease of a new GM vehicle (eligible models), the purchase of any new non-GM vehicle, or simply to redeem for cash rebates.

Rebate Formula - The GM Flex Card allows the cardholder to earn 1% rebate for every dollar that is spent on the card. You have three ways to redeem the rebates on the card.

1. Cardholders can choose to redeem rebates for the purchase or lease of a new (eligible) GM vehicle. If you decided to do this your rebate increased from 1% to 3%. Each eligible GM vehicle allows up to a certain maximum amount of rebates that can be redeemed for each model.

2. Use the cash rebates to redeem for the puchase of a "new" non-GM vehicle. Saturn and Saab are considered non-GM vehicles.

3. Or simply redeem your cash rebates (at 1% rate).

Fees - The GM Flex Card has no annual fee. New cardholders get a 0% apr on balance transfers for 12 months. There is a balance transfer fee of either 3% of the balance transfer (not less than $15.00 and not more than $75.00). The apr is either prime rate plus 4.99%, 9.99% or 11.99%. At each level of apr, the minimum apr is 10.99%, 15.99% and 17.99%. The average daily balance method (including new purchases) is used to calculate monthly balances.

20% discount on GMAC insurance quote - Cardholders of the GM Flex Card are also given a 20% discount of any auto insurance quote from GMAC.

Verdict - The The GM Flex Card is a more flexible card than the original GM card. The original GM Card allowed cardholders to earn 5% rebates on all purchases. However, the rebates can only be used to redeem eligible GM vehicles. There are many cardholders who have decided not to purchase a new GM cars and all their "rebates" went to waste. With the new GM Flex Card, this dilema is resolved. Rebates can be redeemed for "cash rebates" and also for the purchase of a new non-GM vehicle. However, with this "flexible" comes at a cost versus the original card. And that is you only earn 3% rebates if you use the rebates for a new GM vehicle (rather than 5% for the original card).

If you want to use your credit card spending to earn rebates that can be used for a new GM vehicle, but yet want the flexibility just in case you change your mind, then this card would be better than the original GM Card.

Positives
  • Earn 3% rebates if you use rebates for purchase or lease of a new GM vehicle
  • Rebates can also be used for the purchase of non-GM vehicles and "cash rebates"
  • No annual fee
  • 0% apr on balance transfers for 12 monhts



GM Flex Card
Cost/Fees/Interest rates
Introductory rate 0% apr on balance transfer for 12 months
Annual Fees No annual fee
Purchase APR Prime Rate plus 4.99%, 9.99% or 11.99%
Balance Transfer APR Prime Rate plus 4.99%, 9.99% or 11.99%
Cash Advance APR Prime rate plus 15.4%
Penalty/Default Rate Prime Rate plus 21.99%
Min Finance Charge $0.50
Grace Period 20 days
Balance Calculation Method Average Daily Balance (including new purchases)
Balance Transfer Fee 3% min $15.00 max $75.00
Cash Advance fee 3% min $10.00
Foreign Currency Conversion fee 3%
Over-the-credit-limit fee $35.00
Late Payment fee $19.00 - up to $100.00
$29.00 - $100.00-$1,000.00
$39.00 - more than $1000.00



Apply for the The GM Flex Card

If you already have the GM Flex Card, we would appreciate if you can take some time to post your review. Our readers will find them very helpful.


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