Commerce Bank Miles™ Credit Card Review – Up to 3% Cash Back

Commerce Bank Miles™ is a confusingly named credit card with no annual fee and a versatile rewards program that offers competitive cash back rates, along with merchandise and travel redemption options. It earns up to 3% cash back on select purchases, 2% cash back on a wider range of purchases, and 1% cash back on everything else. The name is confusing because, well, Commerce Bank Miles doesn’t earn any miles – it’s a cash back credit card, not a travel rewards card.

This card’s other perks include a 6-month 0% APR introductory deal on purchases and balance transfers, plus 24/7 concierge service and a free FICO score with your monthly statement. It also has a host of fringe benefits, including complimentary rental car insurance. On the downside, it doesn’t have a sign-up bonus or spending categories that accrue points faster than the baseline rate of 1 point per $1 spent .

Also, before you apply for this card, make sure you’re actually eligible. The Commerce Bank Miles Credit Card requires excellent credit, so applicants with uneven credit histories need to focus on improving or rebuilding their credit before signing up. Perhaps more importantly, this card is only available in a handful of states: Colorado, Illinois, Kansas, Missouri, Ohio, Oklahoma, Tennessee, and Texas. If you like this card, but live outside its trade area, let Commerce Bank know how you feel – and then put in an application for one of the many comparable rewards credit cards without geographical restrictions.

Key Features

Earning Rewards

Commerce Bank Miles Credit Card earns unlimited 3% cash back on all eligible net purchases with ridesharing services (such as Uber and Lyft) and wireless providers. It earns unlimited 2% cash back on eligible net purchases at gas stations and restaurants, making it a valuable gas credit card and a great way to save money at restaurants. It earns unlimited 1% cash back on all other eligible net purchases.

Redeeming Rewards

You can redeem your accumulated rewards for cash back (statement credits only), physical and electronic gift cards, general merchandise, and airfare. Cash redemptions value points at a flat $0.01 apiece. Other redemption options produce variable redemption values, typically at or less than $0.01 per point. Redemption minimums vary by redemption method – for instance, you need at least 10,000 points ($100 equivalent) to purchase airfare, with partial redemptions permitted.

Introductory APR

Commerce Bank Miles Credit Card has a 0% APR deal on balance transfers and purchases for 6 months after account opening.

Regular APR

Following the end of the introductory promotions, this card’s purchase and balance transfer APR rises to range between 11.49 % to 21.49%, depending on your personal creditworthiness and prevailing interest rates. The cash advance APR is 26.49% from the day you open your account. The penalty APR is 28.49% and remains in force until you make 6 consecutive minimum payments by the due date.

Important Fees

This card has no annual fee. The foreign transaction fee is 1% for dollar-denominated transactions, and 2% for transactions denominated in foreign currency. The balance transfer and cash advance fees are both the greater of 5% or $10, while the late payment fee is $37.

Concierge Service

This card comes with 24/7 concierge service via Visa Signature Concierge. Your concierge can help you make hard-to-get dinner reservations, navigate complex travel booking processes, and provide free advice on things to do or see on your next vacation.

Free FICO Score

You get a free FICO score on your monthly credit card statement, along with details about how your score is calculated and the behaviors that may affect it for good or ill.

Additional Benefits

This card comes with a slew of fringe benefits through Visa Signature. The most noteworthy include:

• Complimentary rental car insurance on rentals charged in full to your card
• $250,000 in travel accident coverage, a bare-bones form of travel insurance
• Emergency card replacement
• Emergency assistance for travelers stranded more than 100 miles from home

Credit Required

This card requires excellent credit. If you have any substantial blemishes in your credit history, your application is likely to be denied.

Advantages

1. No Annual Fee. The Commerce Bank Miles Credit Card does not charge an annual fee. That’s great news for cardholders who don’t spend enough to offset any recurring annual charge, especially in light of this card’s relatively low baseline earning rate (1%).
2. Decent Introductory APR Promotion. This card charges no interest on purchases or balance transfers for 6 months from account opening. Though high balance transfer fees render this benefit less attractive on the balance transfer side, it’s still great for cardholders who wish to finance large purchases without paying an arm and a leg in interest.
3. Concierge Service for Frequent Travelers. The Visa Signature concierge service is a valuable benefit for frequent travelers who don’t have time to make all their arrangements in advance, or who simply aren’t sure how to navigate the unfamiliar terrain of their chosen destinations. Many entry-level cash back cards don’t offer this benefit – it’s more common on travel rewards credit cards that charge annual fees.
4. Earns Up to 3% Cash Back on Select Purchases. This card earns up to 3% cash back on ridesharing and wireless provider purchases. That’s great news for consumers who regularly use Uber and Lyft, not to mention those with cell phone subscription plans (which is pretty much everyone at this point). The 2% tier – gas and restaurants – is pretty broad too.
5. Generous Fringe Benefits. This card’s fringe benefits are definitely above average for a no-annual-fee credit card. They’re particularly useful for frequent travelers, who normally must turn to travel rewards cards with annual fees to get comparable treatment.

Disadvantages

1. No Sign-up Bonus. The Commerce Bank Miles Credit Card does not offer any sign-up bonus. That’s a big drawback for cardholders seeking to pad their point balances shortly after opening their accounts. Many competing cards, including Chase Freedom and Capital One Quicksilver Cash Rewards, offer sign-up bonuses worth $100 or more to cardholders who meet preset spending thresholds (or who simply make a purchase) within 3 to 4 months of opening their accounts.
2. High Balance Transfer and Cash Advance Fees. This card has high balance transfer and cash advance fees – 5% or $10, whichever is greater. That’s higher than many other rewards credit cards, and a definite downside for cardholders with existing high-interest credit card balances or unpredictable cash flows that sometimes necessitate cash advances.
3. Mediocre Baseline Earning Rate. The Commerce Bank Miles Credit Card’s baseline point-earning rate is a mediocre 1%, or 1 point per $1 spent. That’s lower than many popular cash back credit cards, including fee-free options such as Chase Freedom Unlimited (unlimited 1.5%) and Citi Double Cash (unlimited 2%).
4. Geographical Limitations for Eligibility. This card is only available to applicants who live in Colorado, Illinois, Kansas, Missouri, Ohio, Oklahoma, Tennessee, or Texas. That excludes the majority of U.S. residents. If you live elsewhere, look to any of Commerce Bank Miles’ many nationwide competitors.

Final Word

Let’s circle back to Commerce Bank Miles™‘s unusual rewards program for a moment. The rewards credit card universe is wonderfully varied, but earning 3% cash back on accrued interest is nevertheless unheard of, or nearly so. It’s a potentially beneficial feature for people who’d carry month-to-month balances anyway. After all, why would you pay $1 in interest when you can pay just $0.97?

However, prospective Commerce Bank Miles cardholders must never lose sight of the fact that the 3% break on interest leaves the remaining 97% untouched. If you carry a balance on this card, you’re still going to pay the vast majority of the resultant interest charges. The 3% break is merely an enticement for cardholders who know they’ll carry balances. For everyone else, it’s a distraction that’s best ignored.