The Lexus credit card (officially called the Lexus Pursuits Visa) is a card geared towards those whom drive a Lexus.  It’s not a credit card you normally see advertised or hear much about, so I decided to do some research and do my own review of the Lexus Pursuits Visa.

What type of card is it?
This credit card is issued by Lexus Financial Savings Bank. It’s a Visa Signature card, which isn’t necessarily a good thing. Why? Because these types of cards have “no pre-set spending limit.” Instead, spending is approved or disapproved on a case by case basis.

What are the rewards?
The Lexus Pursuits Visa card does offer some respectable rewards:

• Regular spending earns 1.5 points per dollar spent.
• Spending at participating Lexus dealers earns 5 points per dollar spent.

The points can be redeemed for spending at participating Lexus dealers (parts, accessories, service, put towards buying a new Lexus, etc) and also for travel rewards.

What does it say in the fine print?

Participating Dealers: Lexus credit card rewards can only be redeemed at participating dealers in the continental U.S. and Alaska. This concerns me, because I would hate to have to drive hours away to find a “participating” dealer if there weren’t any nearby.

Reward Caps: The fine print says that for spending outside of participating Lexus dealers, you can only earn up to 7,500 points per billing cycle (that’s $5,000 in spending). So if you’re a big spender, keep this in mind.

Fee for Travel Rewards Program: If you want to redeem your points for travel rewards, you will have to pay an annual fee for enrolling in the “Travel Rewards Program.” I don’t know how much that costs, because I couldn’t find the fee listed anywhere.

Below-Average Travel Point Conversion: If you do use your Lexus credit card points for travel, it doesn’t appear the conversion is favorable… every 1 cent in value requires 1.5 points (so a $250 plane ticket costs you 37,500 points).

High Interest Rate: At the time of my review, their credit card had an APR on purchases was 15.99%. It’s tied to the prime rate, so when that goes up, so will your rate. This interest rate is definitely on the high side in my opinion.

Verdict?
I won’t be filling out a Lexus credit card application with these drawbacks. Hopefully some day they will change that. I also don’t like the fact that there are caps on the amount of points you can earn. So for now I think I’ll be sticking with my 5% gas credit cards instead.