Uh, Wut?! Why I Picked Up This Just-Okay Debit Rewards Card

United MileagePlus Debit Rewards Card

I recently described how my Travel Bank balance has assisted in overcome being a United Airlines nobody for many years.  I don’t fly United as much as I previously did.  With any travel provider, I like to have a useful set of tools in place for an optimal experience – from booking onward.  With credit card benefit uncertainty and United’s changes last week – among other reasons – I decided to pick up the United MileagePlus Debit Rewards card.  I’ll get into the specifics of why I did so, first through the prism of United’s recent program tweaks.

Yes, the United MileagePlus Debit Rewards Card’s Involved

DDG covered United’s announcement a few days ago – you can check it out here.  United MileagePlus has made sweeping changes to how members earn and redeem the airline’s reward currency.  The airline and program are pushing cards even harder.  United cardholders can earn more redeemable miles on cash bookings and redeem for awards at more attractive rates.

Buried in the official announcement is that the newish-to-the-scene United MileagePlus Debit Rewards card participates – sort of.

Earning

Starting 2 April, a United MileagePlus Debit Rewards cardholder earns MileagePlus currency on flights at the following rates after spending $10k in a calendar year (second and third columns):

This United MileagePlus Debit Rewards cardholder earn rate (middle column) equals the same rates all Chase cardholders earn when not paying with the card.  (Like the debit product, the Chase Gateway card has the same $10k calendar year spend requirement to achieve this rate, though.)  But paying via the debit card earns a paltry single additional mile per dollar.  I highly discourage using the debit card for United bookings, as hobbyists likely hold credit cards earning more than one mile per dollar (perhaps the biggest understatement in this article).

Redeeming

There’s other good news.  Starting 2 April, with that same $10k spend in a calendar year, a debit cardholder unlocks 10%-discounted award pricing as all other Chase cardholders.  For Premier status members, this jumps to a 15% discount.  This benefit aligns Chase United MileagePlus cards more with the TakeOff 15 benefit offered on all Amex Delta SkyMiles cards (with the exception of the Blue card).

Why I Opened a United MileagePlus Debit Rewards Card

So I opened a United MileagePlus Debit Rewards card account.  Naturally, I found the more attractive earning and redemption rates worth a try since I wouldn’t be earning as much otherwise.  But before diving into that more, I’ll quickly describe the card highlights:

• 10k bonus miles after spending $500 within the first four months
• 2.5k bonus miles each calendar year after spending $10k
• 1x on United purchases
• 0.5x on purchases everywhere else
• Earn additional bonus miles on minimum average balances

These aspects are fine, but nothing to make a huge deal out of, in my view.  So why did I settle for these earning highlights and other limitations of the debit card?

Neither my wife nor I hold a Chase United credit card.  We will we never be eligible to under Chase’s current policy.  But we prefer it that way.  Since a United credit card isn’t in our future, the United MileagePlus Debit Reward card from Sunrise Bank is our best possible alternative.

Yes, it requires $10k in spend for us to obtain any meaningful benefits, but that’s reasonable for us over the calendar year without giving up any other opportunities.  It just takes a bit of creativity, which is the meager amount I usually have, fortunately.  This is a low-risk experiment for us.  For what it’s worth, opening the account was a cinch.  If things don’t go as planned, I can easily close the account online.

Conclusion

Of course, the debit card is a non-starter for many points and travel hobbyists who currently hold a Chase United credit card or have near-term plans to.  But it’s not a slam dunk for others, either.  I’ve heard various reports within the MtM Diamond Lounge that certain cardholders have erroneously been charged the $4 monthly fee despite holding average balances which theoretically waive it.  While I plan to hold a balance to avoid the fee, I don’t care too much if/when I’m subject to it.  I can easily chalk up that $4 monthly as the cost of some fun experimentation.

I didn’t get into all changes in this article, such as basic economy matters.  Again, check out the full announcement for all the details.

Do you hold the United MileagePlus Debit Rewards card?  How’s your experience been so far?