Credit Cards

How Much Are GM Points Worth

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

When deciding whether to buy a new or used car, the cost is typically the deciding factor. There is a possibility that newer cars are safer than older ones, and that they might have more convenient features. They are, however, usually more costly.

It may be difficult to save enough money to buy a car on your own. This aid is simply a credit card application away from those who have already devoted GM customers or are thinking about making the switch.

That’s because you can rack up points with every purchase you make using the My GM Rewards Card, a Mastercard rewards credit card supported by Goldman Sachs. Your reward points can be cashed in for anything inside the General Motors ecosystem, including a brand-new or certified pre-owned GM vehicle.

Some of the My GM Rewards Card’s Main Features

The My GM Rewards Card is, in many ways, similar to other rewards credit cards; yet, it does differ significantly in a few key respects.

Sign-Up Bonus

Spend $1,000 within the first three months of creating your account, and you’ll receive 15,000 bonus points.

Earning Rewards

There are two tiers to the rewards system for the My GM Rewards Card:

  • Earn 7x points total per $1 spent on eligible purchases at GM
  • Earn 4x points total per $1 spent on all other eligible purchases

Spending $12,000 every year will earn you at least $48,000 in GM rewards points, or $480. You can accumulate as many points as you like. As long as your card account is active, your points will stay valid.

Redeeming Rewards

The ways in which you can cash in your points are flexible. You can get the most bang for your buck by exchanging an unlimited number of points for the down payment on a brand-new General Motors vehicle ($0.10 per point). 

No redemptions may be made in conjunction with the GM Fleet vehicle incentive programs, the GM Employee Discount Program, the GM Company-Owned Vehicle Discount, the GM Supplier Discount Program, or any other incentive programs offered by General Motors. 

There may be further conditions that prevent participation. You are not obligated to use your redemption toward the purchase of a new General Motors vehicle.

  • Redeem your points for Certified Pre-Owned GM automobiles at a rate of $0.01 per point, with a maximum annual redemption of $1,000.
  • You can get $250 in gift cards for every 100,000 points you have earned in a year ($0.0025 for each point).
  • Up to $250 can be redeemed annually for qualified GM purchases such as dealer service, parts, and accessories, and eligible GM subscription services and connected services plans (reward amounts vary).

Annual Credits for Fuel and EV Statements

If you are a cardholder in good standing and use your card to make at least $1,500 worth of qualifying fuel purchases at participating gas stations during the calendar year, you will receive a $100 statement credit.

The alternative is to use your My GM Rewards Card to pay at least six power bills between January and December of 2022 and you’ll receive a $100 statement credit. To be eligible, a business must settle before the end of 2022. Both offers require activation and account verification using the mygmrewards.com portal.

APR Offer to Begin

The purchase interest rate on this card is 0% for the first 12 months. Once the beginning period ends, the standard variable APR will take effect. There is no similar balance transfer promotion at this time.

Discount for Vehicle Detailing

You’ll get $50 per year to put toward the cost of detailing services at an authorized General Motors dealership of your choice. This discount is automatically applied by the dealer at the time of service.

Design of a Custom Card

Chevrolet, Buick, Cadillac, GMC, and GM are all represented on the available card designs, along with GM’s own symbol.

Important Fees

There are no fees associated with using this card overseas or each year. A $40 fee may be assessed for late or returned payments.

Credit Required

A high credit score is needed to get approved for the My GM Rewards Card.

Pros of using the My GM Rewards Card

If you’re a fan of General Motors or are considering becoming one, the My GM Rewards Card is a great reward credit card to have. Its primary benefits include low annual percentage rate (APR) promotions, high incentives, and comparatively inexpensive costs.

  1. There is Not Any Yearly Cost. The My GM Rewards Card does not charge a yearly fee. If you’d rather not pay a fee every year just to keep your card active, that’s wonderful news.
  2. Get 7 Points for Every Dollar Spent at GM. When used for qualified General Motors purchases, the card offers one of the highest return rates among rewards credit cards at 7 points for every $1 spent or a return rate of 7%.
  3. For Every Other Purchase, You’ll Get 4 Points. If you redeem your points for qualified General Motors purchases, you’ll get a reward rate of 4%. That’s right; it’s one of the finest returns on investment available from any rewards credit card.
  4. Consistently Good Annual Fuel and EV Credit. Whether you use gasoline or electricity to power your vehicle, completing the required tasks will earn you a $100 statement credit that can be applied to your fuel expenses. That’s a welcome relief from the hefty costs of fuel and power.
  5. There is No Limit on the Number of Points you can Earn, and your points never expire. Your gained points will never expire so long as your account is active. Plus, unlike some other no-annual-fee rewards credit cards, there are no limits on how much you can earn.
  6. There will Be No Extra Charge for Foreign Exchange. There are no fees for purchases made abroad with your My GM Rewards Card. This is fantastic news for those who frequently visit foreign countries or shop from overseas businesses.

Cons of the My GM Rewards Card

There are several cons to using the My GM Rewards Card, such as a lack of a 0% APR balance transfer campaign and a low redemption value for gift cards compared to other GM rewards cards.

  1. Gift Cards Have a Low Redemption Value. Gift cards are another option for those who aren’t quite ready to invest in a new or pre-owned GM automobile just yet. This is terrific until you realize that the option’s redemption value is $0.0025, or 75% less than the redemption value of a new or used car.
  2. Certain General Motors Redemption Options are Subject to Restrictions. A new GM vehicle can be purchased with any number of points. The maximum annual point redemption for used vehicles and dealership parts and services is 100,000 points.
  3. Sorry, there is currently no Balance Transfer Offer available. The intro 0% APR on purchases is great, but it needs to be paired with an intro 0% APR on balance transfers. If you’re struggling to pay off high-interest credit card debt, this isn’t good news.

The Performance of the My GM Rewards Card

In order to save money on your next GM vehicle purchase, get a My GM Rewards Card. But how does it compare to other credit cards that offer rewards?

Compare the My GM Rewards Card to another popular card with a tiered cash-back rewards program the American Express Blue Cash Preferred Card.

My GM Rewards CardBlue Cash Preferred Card from American Express
Welcome OfferGet 15,000 bonus points when you spend $1,000 in your first three monthsEarn $300 back after you spend at least $3,000 on purchases within the first six months
Max Rewards RateUp to 7x points total per $1 spent at GM6% cash back on select purchases
0% APR Promotion0% intro purchase APR for the first 12 months, then variable regular APR applies0% for 12 months on purchases, then variable regular APR applies 
Annual Fee$0$0 the first year, then $95 thereafter

Bottom Line

You can’t finance the full price of a car, whether you’re buying a new or used one. For starters, you’ll need a down payment to show that you’re serious about the deal.

Having a powerful rewards credit card can make it much easier to come up with this skin in the game. The My GM Rewards Card is one of the best credit cards for this purpose because it allows cardholders to earn points on all purchases that can be applied to the purchase of new or pre-owned vehicles, as well as other qualified GM products and services.

If you aren’t in the market for a GM vehicle in the near future, you may want to rethink applying for the My GM Rewards Card because of its limitations and drawbacks. For what it is, however—a method of lowering the ongoing expense of owning a car—it works wonderfully.

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