Do you use T-Mobile for your wireless phone or internet services? If so, you may be a candidate for the new T-Mobile Visa® credit card.
The wireless provider just announced that it is partnering with Capital One to offer a no-annual-fee rewards credit card to its customers.
T-Mobile customers who swipe this card can earn 2% back on everyday purchases and up to 5% back on select T-Mobile purchases. They can also earn a discount by setting this card up for autopay on T-Mobile bills.
But the earned rewards are not “cash back” like other credit cards may offer. They’re “T-Mobile Rewards” that are to be redeemed in the T-Mobile ecosystem.
This approach, which is similar to that taken by competitor Verizon with the Verizon Visa, is designed to incentivize customers to use the co-branded credit card on a variety of purchases and then redeem the rewards toward their wireless bill.
This process creates brand loyalty and deepens the relationship beyond that established solely by offering wireless service. In other words, it’s a way to hook you into their ecosystem and make it harder to leave for a competitor.
Should we play along to enjoy the rewards or skip the headache? It likely depends on your current cash back credit card setup and your loyalty to T-Mobile for the long term.
In this article, we’ll look at the basics of the card, what the executives involved are saying about its launch, and we’ll try to determine if it’s a good fit for your wallet.
T-Mobile Visa®: Card Basics
This co-branded credit card is offered by Capital One, carries the Visa Signature branding, and has no annual fee. You need to be a T-Mobile customer to apply.
At launch, there was no welcome bonus or introductory APR offer for this card.
Rewards Structure
There are two basic reward tiers for your spending with this card:
- 5% back on select T-Mobile spending. This is earned on the purchase of any phone, device or accessory. But it does not include making monthly bill payments to T-Mobile, which is disappointing.
- 2% back on non-T-Mobile spending. You can earn 2% in T-Mobile Rewards on all other purchases.
Your rewards are issued as T-Mobile Rewards, which can be redeemed on the following items via the provider’s website or app:
- Credit towards your T-Mobile bill
- New phone
- Other new device (ex., tablet or smart watch)
- Accessories
“Accumulated T-Mobile Rewards may only be redeemed to pay your T-Mobile wireless bill or for purchases of phones, devices, or accessories at T-Mobile.com or through the T-Life app at T-Mobile retail locations and Authorized Retailers via the T-Life app.”
Autopay Discount
If you’re not already taking advantage of an autopay discount with T-Mobile, this card is eligible to earn you $5 back per month if you set it up as your autopayment method for your wireless bill (limited to 8 total lines).
Fine print worth noting:
“Requires enrollment in Wireless AutoPay using your T-Mobile Visa on an eligible post-paid wireless plan. Discount will appear on wireless statement starting the next billing cycle after enrollment. Customers who are currently receiving the AutoPay discount via other qualifying methods will not receive additional discounts for re-enrolling using the card.”
Other Noteworthy Perks
- Up to 50% off select hotels and up to 45% off select Pay Now rental cars booked through T-Mobile Travel.
- Savings on gas with Shell Fuel Rewards — For a limited time, T-Mobile Visa cardholders can save a whopping 25 cents off per gallon up to 20 gallons on Tuesdays through Dec. 23.
What They’re Saying About the Card Launch
T-Mobile prides itself on providing more than just a carrier experience for its customers. Whether it’s freebies on T-Mobile Tuesdays or making partnerships with streaming services, they’re consistently trying new things to stand out.
This credit card seems to be their next venture in that:
“At T-Mobile, we’re constantly looking for new ways to unlock more value for our customers—and the T-Mobile Visa does exactly that,” said André Almeida, President of Growth and Emerging Businesses, T-Mobile. “In partnership with Capital One, we’ve created a scalable rewards platform that turns everyday spending into meaningful savings on the products and services our customers rely on. Capital One brings security, service, and expertise like no other bank, while the Un-carrier delivers unique rewards and wireless benefits that make the T-Mobile Visa stand out.”
Capital One, which recently acquired Discover, seems like a logical partner for this new card. They have experience with co-branded cards and a platform that many customers are already used to using.
“Capital One has a long track record of successful partnerships with some of the most loved, well-known brands in the US to deliver credit card programs that deepen customer engagement,” said Ralph Haro, Senior Vice President, Head of Card Partnerships at Capital One. “Our significant investments in technology, and our expertise in lending across the credit spectrum, allowed us to collaborate with T-Mobile to design a credit card program that could grow and scale over time. We’re incredibly excited to launch the T-Mobile Visa and introduce completely new benefits and value customized for T-Mobile customers.”
Is This Card Worth It?
If you’re not familiar with Team Clark’s cash back credit card strategy, it’s worth noting that our first piece of advice involves getting a no annual fee card that gives you a chance to earn unlimited 2% cash back on everyday purchases.
This card sounds a lot like that, but there’s a major caveat: You are earning T-Mobile Rewards that have to be used in their ecosystem.
And that’s fine if you’re going to be a long-term T-Mobile customer who can simply apply this as a statement credit toward your wireless bill each month.
But if you ever consider shopping around for your cell phone plan, you may find that receiving T-Mobile Rewards is no longer useful after a carrier switch.
Because of that, we recommend that you instead use a non-affiliated cash back card like the Synchrony Premier World Mastercard®. That one gives you unlimited 2% cash back applied automatically to your account as a statement credit each month. No red tape for redemption.
Does this card interest you? We’d love to hear your thoughts in the Clark.com community.
