The marketing push is that you’ll get a signup bonus up to $1,000 in Verizon Dollars if you apply by 6/25 at 9pm ET, but that’s not entirely true. There will be a $1,000,000 pot that will be split among all people approved for the card. That means if there are only 1,000 approvals that everyone would get $1,000, but with 10,000 approvals everyone would get $100, with 100,000 approvals everyone would get just $10, and with 1,000,000 approvals everyone would get a buck. The pot size seems pretty stingy to me.
Verizon has over 150MM users, so I wouldn’t apply expecting much of a signup bonus.
But the card will also waive the penalty that you pay for using a credit card instead of using autopay from a checking account on select unlimited plans. Those fees vary based on the plan you have.
The card offers 4% back in Verizon dollars on gas and groceries, 3% back on dining, and 2% back on Verizon spending.
That’s a pretty low reward for Verizon spending and there are other cards that offer more valuable rewards for other categories.
Plus these rewards are issued as Verizon dollars, which means you’ll lose out on earning bonuses for wireless spending for the amount of the rewards.
So the question is if the autopay monthly fee waiver makes it worth getting the card.
If you have a $200 monthly wireless bill on a Verizon Plan Unlimited family plan and you use a Chase Ink Cash card you’ll earn 1,000 Chase Ultimate Rewards points. If you value those points at 1.6 cents each, that’s a value of $16 back or 8% back.
If you pay the bill on the Verizon card you’ll save $10 on your monthly bill and get back $4 in Verizon Rewards, so that’s less valuable than using an Ink Cash card.
However if your monthly Verizon Plan Unlimited family plan is $100 the math changes, the Chase points would be worth $8 or you would save $10 and get back $2 with the Verizon card.
However the Verizon card doesn’t come with cell phone insurance. If you pay your bill with a card like Chase Ink Preferred you get 3 Chase Ultimate Rewards per dollar, worth about 5% back, plus you get free phone insurance on all of your lines. That can be worth much more than the cash back.
The Chase Ink Cash or Ink Preferred are also strong add-ons onto the Freedom Unlimited+Sapphire Reserve killer card combo.
In short, there are probably better options to pay your bill than with a Verizon card, but if you do pay your bill from a checking account now then it may be worth opening a Verizon card so that you’ll earn rewards for your Verizon spending.
Then again, applying for a new card means that you use up a 5/24 slot that could be better utilized to apply for a more rewarding card, so you’ll have to decide if that’s worthwhile.