GM BuyPower Card® review

Quick highlights

• Rewards rate: 5 percent on up to $5,000 each year in purchases, thereafter 2 percent unlimited
• Welcome offer: None
• Annual fee: $0
• Purchase intro APR: 0 percent for the first 12 months
• Balance transfer intro APR: N/A
• Regular APR: 15.24 percent to 24.24 percent variable

Current welcome offer

While there isn’t a traditional welcome offer with this card, new cardholders can take advantage of the 0 percent introductory APR on purchases and for 12 months. This can save you several hundred dollars on your credit card bill if you aren’t paying off the full balance. It’s important to keep an eye on your statements, however, as the APR will revert to 15.24 percent to 24.24 percent variable based on your creditworthiness after the intro period.

Rewards rate

The earnings program on this card is ultimately one of the major drawings for new cardholders. But unlike most rewards cards, cash back earned with the GM BuyPower Card can only be used on purchasing or leasing a GM car.

How you earn

Cardholders can earn 5 percent of the first $5,000 in net BuyPower Card purchases. This is over a calendar year, and purchases that exceed this amount earn account holders 2 percent. There is no limit to the earnings within a calendar year. It’s important to know that certain transactions are excluded, such as transferred balances and cash advances. It’s also worth knowing that these earnings can’t be combined with earnings from other GM cards.

How to redeem

Cash back redemptions are limited with this card. Cardholders can only redeem their rewards in one of two ways:

• Purchases: You can use your earnings toward the purchase or lease on a new car. The brands that qualify include Chevrolet, Buick, GMC and Cadillac.
• Statement credits: These credits can be redeemed on qualifying purchases of in-dealership items such as vehicle care and GM extras. You can redeem up to $250 in credits each year.

How much are the rewards worth?

Like with many cash back credit cards, this card’s rewards values are static and don’t increase or decrease depending on how you redeem them. If you accumulated $200 in cash back with this card, the rewards will always be worth $200. 

While 5 percent earnings on qualifying spending up to $5,000 annually is great, the earning potential doesn’t end there. After the $5,000 cap, you still earn rewards, albeit at a reduced rate of 2 percent. To sweeten the deal even further, these earnings are unlimited. The GM BuyPower Card has a few other offers, too.

Add the bells and whistles

Not only do you have an opportunity to use your earnings toward the purchase or leasing of a new car, but you can also use those earnings to kit out your car with added extras, like Sirius XM Radio and other accessories.

Your earnings don’t expire

As long as your account is open and active, your earnings will remain until you use them.

Opportunity to combine offers

When you’re ready to buy, keep an eye out for participating dealerships that have existing offers.

The fees are fairly low on the GM BuyPower Card, especially with the $0 annual fee. There are also no transfer fees and no foreign transaction fees, making it a great option for everyday purchases at home and abroad.

This card becomes pretty pricey when you’re doing cash advances, as they’re charged at 3 percent with a minimum of $10. There is also a late payment fee of up to $38.

The GM BuyPower Card works much the same way as cash back cards. One key difference is that the cash back here is referred to as earnings, which can only be used for purchasing or leasing a GM car. Two other cards to consider are the My GM Rewards® Mastercard® and the Chase Freedom Unlimited®.

GM BuyPower Card vs. the Chase Freedom Unlimited

Because the GM BuyPower card only allows cardholders to redeem cash back for GM-related purchases, the Chase Freedom Unlimited outshines it. With the Freedom Unlimited, cardholders can earn in various categories, but most importantly, they can redeem for cash back or combine rewards with a Chase Sapphire card to pool points. The Freedom Unlimited’s tiered cash back categories also give cardholders the opportunity to out-earn the GM BuyPower Card, leaving it further behind. Furthermore, the Freedom Unlimited’s welcome offer, while modest, lets you earn an additional 1.5 percent back on up to $20,000 in purchases your first year.

GM BuyPower Card vs. the My GM Rewards Card

The My GM Rewards Card is a clear upgrade from the GM BuyPower card. Because the My GM Rewards Card earns 7X points on GM purchases and 4X points everywhere else, it can easily outpace earning rewards with the GM BuyPower Card. However, the My GM Rewards Card can still limit cardholders’ rewards value, as the point value drops from 1 cent when redeeming for purchasing or leasing a GM vehicle to 0.25 cents when redeeming for gift cards from partner merchants.

Best cards to pair with GM BuyPower Card

While the GM BuyPower Card offers some travel benefits such as lost luggage insurance and the concierge service, avid travelers should consider travel rewards cards such as American Express® Gold Card, with its attractive welcome offer and access to VIP travel perks. While this doesn’t include lounge access, passes can be purchased at a decent rate.

Another card that pairs up well with the GM BuyPower card is the Citi® Diamond Preferred® Card, which offers a 0 percent intro APR on purchases for 12 months and on balance transfers for 21 months (17.49% - 28.24% (Variable) APR thereafter; balance transfers must be completed within the first four months). Just keep in mind the balance transfer fee of 5 percent or $5, whichever is greater.

If you’re eager to get behind the wheel of a Chevrolet, GMC, Cadillac or Buick in a few years, the GM BuyPower card will help get you there. A quick calculation shows that spending $10,000 in an annual card cycle will earn you $250 (5 percent of $5,000) and $100 (2 percent of $5,000). If you have the card for a few years before your car purchase, that can translate to substantial savings on the purchase.

If, however, you’re not in the market for a car, but you’d like a cash back card, then you’d be better off with the Capital One Savor Cash Rewards Credit Card or the Chase Freedom Unlimited.

*The information about the GM BuyPower Card® has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.