Ace Rewards Platinum Visa Card Review

You get a $10 enrollment bonus once your application is approved.

• Loyal Ace hardware store customers who want to earn rewards on their purchases.

Credit Rating Required

• Fair and up (600+).

Pros

• $10 enrollment bonus.

Cons

• Weak and misleading rewards program.

Rewards

• Up to 5% back on purchases at Ace hardware stores.
• 2% back on gasoline and groceries.
• 1% back on all other purchases.
• Up to 10% back on purchases in quarterly revolving categories.

APRs

• 13.99% to 22.99% on purchases and balance transfers, depending on your credit history.

Fees

• No annual fee.
• Balance transfer fee: 3% of balance.
• Late payment fee: Up to $35.
• Return check or payment fee: Up to $35.
• Over the limit fee: Up to $35.

There are two little words that when placed next to each other are among the most deceptive words in the credit card business. Those words are "up to," as in you earn "up to" 5% back on purchases at Ace with this credit card.

Actually, you don't earn 5% back until you spend a whopping $12,000 each year; until then, you only get 3% back. That's a big difference.

Let's say you spend $1,000 a year at Ace: you'd only earn $30 in rebates, instead of $50. If you do eventually spend $12,000, your 2% bonus reward will appear in a lump sum on your monthly statement during the first quarter of the next calendar year. Not exactly a major selling point for this card.

It's also not clear what the rewards are worth. While the website says you earn 2% on gas and groceries and 1% on all other spending, it says you need to generate 12,500 points before you earn a $25 Ace rewards certificate. Assuming you'd have to spend nearly $12,000 to earn a $25 reward, that works out to well under 0.5%. So, in addition to being misleading, the rewards program is rather weak.

There's another problem: U.S. Bank, which issues this card, goes out of its way to warn cardholders that while you should receive Ace rewards at all Ace stores when you use the card, "not all Ace stores will accept the Ace rewards enrollment bonus certificate or the Ace rewards certificates earned through card use." In other words, even if you do earn rewards, you might not be able to use them.

On the plus side, you do earn a $10 enrollment bonus when you get the card. Just make sure you're able to use it at your local Ace store.

As with any credit card, or financial product for that matter, you always have to read the fine print and the footnotes. Otherwise you wouldn't know what your points are worth or how many you need before you earn a reward. If you can't find a clear answer, avoid it. That message applies to this card.

Discover practically invented the term "up to" in the credit card business; its flagship credit card pays you "up to" 1% back. But even Discover doesn't make you spend anywhere close to $12,000 a year before you get the full benefit.