US Bank Cash 365

The Good

• 0% for 12 months on balance transfers
• 2% rewards rate during first year; redeem rewards as bank deposit, statement credit or gift card
• $150 bonus if spending $500 in first 90 days
• No annual fee
• FICO credit score for free

The U.S. Bank Cash 365™ Credit Card awards 1.5% cash back to the cardholders on everyday purchases.   However, during the first year of owning the card, cardholders will receive 2% rewards on all purchases.  The rewards can be taken one of 3 forms. It can be credited to the Money Market account, deposited into a U.S. Bank Savings or U.S. Bank Rewards Card. But, you cannot withdraw once the rewards are loaded onto your Rewards Card.

You will earn $150 if you spend $500 on eligible purchases after opening an account in the first 90 days. Within the first 60 days, any balances transferred after opening the account have a 0% APR for the first 12 months, and then a variable APR of 15.24% to 24.24%. Your benefits include extended warranty coverage, price protection, auto rental loss, return protection, travel accident insurance, damage insurance, retail protection and emergency assistance. There is no annual fee.

The Bad

• Minimum redemption of $20
• Can’t redeem cash for merchandise or travel
• Requires excellent credit

The low-end APR on this credit card is relatively higher than the most popular cash back cards. The lack of an intro cash bonus is not a problem because of the 1^st year’s 2% rate, but the cash bonus of the credit card 1.5 percent rewards rate in the long run cannot less than some with a 2% rate always.

The APR is 15.24% to 24.24% (variable), so those who do not qualify for the best rate may have an APR of up to 24.24%. Also, Balance transfers can only be made within the first 60 days.

The Summary

The Credit Card is a good choice if you are looking for a cash back card specifically from the U.S. Bank.  But if you are open to other banks you can find better rewards and offers.  But the fixed 1.5 percent rewards rate is not bad – it is useful for cardholders with different spending who want a decent rewards credit card.

We feel that this is a good middle-of-the-road credit card based on the research on average cash back cards and U.S. Bank Cash 365, which will give average returns after receiving a decent amount of free cash the first year.  But it’s not an outstanding rewards card – nor is it an outstanding balance transfer card.  And our view is that individuals looking to transfer a balance should only be focused on paying down the current balance and not on rewards.