HMBradley Introduces Rewards Credit Card for Deposit Account Customers
At a time when many FinTechs are issuing their own debit cards, it seems that one such platform is trying something a bit different by offering a specialty credit card instead. This week the digital banking platform HMBradley introduced a new rewards credit card for customers.
The card, which is issued in partnership with Hatch Bank, is now being offered to deposit account holders who maintain an average daily balance of at least $250 and receive at least one direct deposit a month into their account. Additionally, users will need to opt into the platform’s One-Click Credit where they will be able to see if they qualify for an HMBradley rewards card based on a soft pull of their credit.
In contrast to many rewards credit cards that have set multipliers for various categories, the HMBradley card will adapt to users’ spending habits. With its “3-2-1 cashback” structure, cardholders will earn 3% back on purchases in their largest spending category, 2% back on purchases in their second-highest spending category, and 1% back on everything else. These categories will also adjust with each statement cycle, giving customers greater flexibility. While it’s not noted in their press release, according to HMBradley’s FAQ, the reward card will carry a $60 annual subscription fee. However, this is waived for the first year.
Another component of the HMBradley credit card is that users who spend at least $100 a month on their card will get a boost in reaching higher Savings Tiers on the HMBradley accounts. At this time, the digital banking platform offers four tiers of interest rates based on customers’ savings rates. Currently those who save between 5% and 9.99% of their direct deposits earn 0.5% APY in the lowest tier while those who manage to save 20% or more can unlock 3% APY. Thus, now those HMBradley cardholders who can save at least 15% of their income and spend upwards of $100 a month on their credit card can bump their 2% APY in Tier 2 up to Tier 1’s 3% APY.
Commenting on what makes the company and its new credit card unique, HMBradley co-founder and CEO Zach Bruhnke said in a statement, “We created HMBradley to provide a better way for people to bank; every aspect was designed with their needs and concerns in mind. The HMBradley Credit Card takes all of the guesswork out of rewards so that consumers can use it however and whenever they want.” Bruhnke added, “Similarly, we made it just as easy to bank via mobile as it is over a laptop or desktop with an experience we feel is superior to other traditional banking options.”
To be fair, although other credit cards do offer rewards based directly on user spending, this is more common among business cards than consumer-minded ones. The concept of a credit card potentially allowing you to earn more interest on your savings is certainly intriguing. For those reasons, the HMBradley rewards credit card could be a good option for current users. However, given the banking requirements and annual fee (starting in the second year), the market for the card will likely be limited for the time being. Nevertheless, those seeking a new online bank account and a simple-to-manage rewards credit card may find a solution in HMBradley.