Banana Republic Rewards Mastercard® review: Peak rewards for Gap customers, but no one else

A card like the Chase Freedom Unlimited® rewards everyday shoppers, which means you’ll have a wider variety of stores in which to earn points. In addition to a generous welcome offer, you’ll earn 5 percent cash back on Chase travel purchased through Chase Ultimate Rewards®, 3 percent cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5 percent cash back on all other purchases. 

The Freedom Unlimited will let you enjoy rewards on your retail purchases as well as any other shopping, while the Banana Republic Rewards Mastercard will only let you enjoy a boosted rewards rate at eligible stores in the Gap Inc. family of brands. It’s an overall more flexible option for rewards enthusiasts who spend money at a variety of merchants.

Another option is the Prime Visa card, which lets you earn 5 percent cash back on eligible Amazon.com and Whole Foods Market purchases. It’s worth noting that Gap and Banana Republic both sell products on Amazon and all of the brands in the Gap Inc. family of brands sell gift cards on Amazon. You can buy these gift cards by paying with points you earn from Amazon purchases using the Prime Visa. This makes the Prime Visa a pretty good choice if you want to exercise some brand loyalty but still want to maximize your earnings in other areas of your budget.

Other spending categories include 2 percent back at restaurants, gas stations and on local transit and commuting, as well as 1 percent cash back on all other purchases. If you shop regularly on Amazon.com or plan to make other purchases throughout the year, don’t count this card out.

The Blue Cash Everyday Card from American Express is one of the best cards for groceries because it earns boosted cash back for U.S. Supermarket purchases. It also rewards highly for U.S. online retail purchases, helping it standout from other top grocery cards.

The Wells Fargo Active Cash card earns a flat rate of 2 percent cash rewards on purchases no matter where or how much you spend. It’s a great card to hold when you want to raise the bottom line of your rewards for your purchases. You can use this card for every purchase you make outside of Gap Inc. brands to make sure you earn a decent rewards rate.

If you spend hundreds of dollars per year at either Gap, Banana Republic, Athleta, Old Navy or all four and never carry a balance this card can help you build a high rewards balance and let you take advantage of some niche customer perks.

The Banana Republic Rewards Mastercard is a retail store credit card associated with the Gap Inc. family of brands. It features boosted rewards and benefits for purchases at these branded locations.

You can use the Banana Republic Mastercard anywhere that accepts Mastercard.

Although the cards are branded differently, the Banana Republic Rewards Mastercard and Gap Good Rewards card feature the same rewards rate at the same stores. There are a few differences between the two cards outside of their rewards rates, but they are issued by the same bank.

The primary criteria for a rewards or cash back card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits, according to the Bureau of Labor Statistics (BLS).

The most recent BLS data estimates average total spending in 2022 was $72,967 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $22,500.  

Some of the major spending categories that contribute towards the annual spend include:

• Groceries: $5,700
• Dining out: $3,600
• Entertainment: $2,400
• Gas: $3,100
• Apparel and services: $1,900

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 22 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases, as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value.

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

We also rate cards based on how much it costs to keep them in your wallet or carry a balance. 

To start, each rewards or cash back card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards or cash back cards. 

We also score each card based on how its annual fee influences its overall value. 

We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value, but if a card offers terrific value via its ongoing rewards and perks, it can earn a high score even if it carries a high annual fee. 

With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against other cards in the category when you subtract its annual fee.

We rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards and factor this rating into a card’s overall score. 

Flexibility factors include whether a card only allows you to earn a high rewards rate on a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you redeem for some options versus others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners.

We also score each card’s set of features – its perks and benefits — against five tiers of features to provide a rating. 

We break down these tiers as follows:

• Tier 1 has less than standard card features (an ultra-streamlined card that offers basic utility and next to nothing in the way of ancillary benefits. 
• Tier 2 includes the benefits you’d expect on standard Visa or Mastercard credit cards, such as free access to your credit score, car rental insurance and $0 liability for fraudulent charges. 
• Tier 3 includes “prime card” or better-than-average card features like cellphone insurance, lost luggage insurance, concierge services and purchase protection. 
• Tier 4 includes luxury features such as airport lounge access, elite status with an airline or hotel and credits for expedited security screening membership programs. 
• Tier 5 includes the sort of exemplary benefits you’ll find on top-tier luxury cards, such as high-value travel credits, cardholder memberships and other unique and valuable perks.