Fred Meyer Rewards® World Elite Mastercard® Credit Card Review

In the landscape of credit cards, the Fred Meyer Rewards® World Elite Mastercard® stands out with its unique blend of cashback rewards, fuel savings, and no annual fee. This card is particularly appealing to loyal Fred Meyer shoppers and those who frequently use mobile wallets for their purchases. In this comprehensive review, we will delve into every facet of the Fred Meyer Rewards® World Elite Mastercard®, providing you with detailed insights, key takeaways, benefits, and an analysis of its pros and cons. By the end of this review, you’ll have a thorough understanding of whether this credit card aligns with your financial needs and lifestyle.

Fred Meyer Rewards® World Elite Mastercard® Key Takeaways

Cashback Rewards Structure

The Fred Meyer Rewards® World Elite Mastercard® offers a tiered cashback rewards system designed to provide maximum value to cardholders:
– 5% Cash Back on Mobile Wallet Purchases: For the first $3,000 spent annually, you earn an impressive 5% cash back on purchases made through mobile wallets such as Apple Pay, Google Pay, and Samsung Pay. After reaching the $3,000 threshold, you earn 1% cash back on these transactions.
– 2% Cash Back at Fred Meyer Stores: Regular shoppers at Fred Meyer stores can benefit from a consistent 2% cash back on their purchases.
– 1% Cash Back on All Other Purchases: For all other purchases outside of Fred Meyer stores and mobile wallet transactions, you earn 1% cash back, providing a steady stream of rewards.

Fuel Savings

One of the standout features of this card is the potential for significant fuel savings:
– Up to $1.25 per Gallon of Fuel Savings: By redeeming at least 1,000 fuel points at Fred Meyer and Kroger Family of Companies Fuel Centers, you can save up to $1.25 per gallon. This benefit is available for the first year and continues thereafter if you spend $6,000 in a calendar year.

Interest Rates and Fees

Understanding the cost of borrowing is crucial when evaluating a credit card:
– Variable APR: The purchase APR ranges from 19.24% to 29.99%, depending on your creditworthiness. The same range applies to balance transfers and cash advances, with the latter carrying an APR of 29.99%.
– Fees: The card does not have an annual fee or foreign transaction fees, making it an attractive option for those who travel internationally. However, fees for balance transfers and cash advances apply, with a minimum of $10 or a percentage of the transaction amount, whichever is greater. Late and return payment fees can be as high as $41.

Credit Requirements

A good credit score is typically required to qualify for this card:
– Credit Score Range: A credit score of 670 to 739 is generally considered good and increases your likelihood of approval.

Fred Meyer Rewards® World Elite Mastercard® Pros and Cons

Pros

– No Annual Fee: Enjoy the benefits of this card without the burden of an annual fee.
– No Foreign Transaction Fees: Ideal for international travelers, as there are no additional charges for purchases made abroad.
– High Cashback Rates: Earn substantial rewards on mobile wallet purchases and at Fred Meyer stores.
– Fuel Savings: The potential to save up to $1.25 per gallon on fuel is a significant perk for frequent drivers.

Cons

– No Introductory APR: The card does not offer an introductory 0% APR period for purchases or balance transfers, which could be a drawback for those looking to consolidate debt or finance large purchases.
– High Variable APR: Depending on your creditworthiness, the APR can be quite high, potentially leading to expensive interest charges if you carry a balance.
– Limited Cashback Categories: While the card offers excellent rewards for specific categories (mobile wallet and Fred Meyer purchases), the 1% cash back rate on other purchases may not be as competitive as other cards with broader reward structures.

Fred Meyer Rewards® World Elite Mastercard® Benefits

Comprehensive Cashback Rewards

The tiered cashback system is designed to maximize your rewards on everyday spending:
– Mobile Wallet Purchases: With the increasing popularity of mobile wallets, earning 5% cash back on up to $3,000 in annual spending is a significant advantage. This can quickly add up if you frequently use your mobile wallet for purchases.
– Fred Meyer Stores: Earning 2% cash back on purchases at Fred Meyer stores is a notable benefit for loyal customers who regularly shop there.
– Everyday Purchases: A 1% cash back rate on all other purchases ensures you are consistently rewarded, even on non-category spending.

Fuel Savings Program

The fuel savings program is a highlight for frequent drivers:
– Fuel Points System: By accumulating fuel points through purchases, you can enjoy substantial savings at the pump. The ability to save up to $1.25 per gallon can significantly reduce your fuel expenses, particularly if you drive regularly.

No Annual Fee

The absence of an annual fee makes this card a low-cost option for earning rewards:
– Cost-Effective: Without an annual fee, you can enjoy the benefits of the card without worrying about offsetting the cost through your rewards.

No Foreign Transaction Fees

For those who travel internationally, the lack of foreign transaction fees is a valuable benefit:
– International Use: This feature allows you to use your card abroad without incurring additional charges, providing peace of mind and cost savings during your travels.

Flexible Reward Redemption

The card offers flexible options for redeeming your rewards:
– Cash Back Redemption: You can redeem your cash back rewards as a statement credit, direct deposit, or even for gift cards, giving you flexibility in how you use your earned rewards.

Additional Mastercard Benefits

As a World Elite Mastercard, this card comes with several additional perks:
– Travel and Lifestyle Benefits: Enjoy access to exclusive travel offers, concierge services, and other lifestyle benefits that enhance your overall cardholder experience.
– Purchase Protection: Benefit from purchase protection, which can cover eligible purchases against damage or theft, providing added security for your transactions.
– Extended Warranty: The card may offer extended warranty coverage on eligible items, extending the manufacturer’s warranty for added peace of mind.

Conclusion

The Fred Meyer Rewards® World Elite Mastercard® is a compelling option for those who frequently shop at Fred Meyer stores, use mobile wallets, or seek substantial fuel savings. With its tiered cashback rewards, no annual fee, and no foreign transaction fees, it offers a cost-effective way to earn rewards on everyday spending. However, the absence of an introductory APR period and the potential for high-interest rates may be considerations for those looking to carry a balance or finance large purchases.
Ultimately, the decision to apply for this card should be based on your spending habits and financial goals. If you are a loyal Fred Meyer customer, frequently use mobile wallets, and drive regularly, the rewards and benefits of this card can provide significant value. However, if you seek a card with broader reward categories or an introductory APR period, you may want to explore other options.
As with any financial decision, it’s essential to carefully review the terms and conditions, assess your spending patterns, and consider how the card aligns with your overall financial strategy. The Fred Meyer Rewards® World Elite Mastercard® has the potential to be a valuable addition to your wallet, offering a range of benefits that cater to specific spending behaviors and preferences.