Vattené wrote:I would have no confidence at all with the Cash+. It seems like a great card when introduced and anything is open to nerfing, but there have been so many cuts to it and restrictions/narrowings of categories.
I would be interested to know how much the Sallie Mae is used exclusively (or very predominantly) for 5% spending. Freedom and Discover it are flagship, heavily marketed products that are more likely to be one's go-to everyday card, but the Sallie Mae is much less widely known. I'd speculate a larger proportion of its use is for 5% spending. If enough is, that will be unsustainable and it will be getting nerfed, too.
I've wondered that same thing.
Freedom is pretty mainstream. I even listened, with much amusement, to someone proudly telling me how her Freedom was earning her 5% cash back on groceries. This was an August 2015 discussion about a Q1 2015 category. I said I thought that the 5% category was something else right now, like gas. False uncertainty seemed more polite.
Sallie Mae has fairly high credit standards, so it doesn't get a lot of highly profitable building/rebuilding customers who'd be happy with it as an everyday card.
Even if customers occasionally exceed the $250 caps, at $500 of gas or groceries it would still be a 3% cash card.
Another factor is that the signup bonus is tiny. That may discourage serious bonus-hunters and make the customer pool more desirable.
So I think nerfing is possible, but not guaranteed.