Wells Fargo Expands Home Loan Credit Card Rewards
By Steven Gibbs
November 10, 2009
As homeowners are trying harder than ever to pay down debt and save, it looks like one credit card issuer wants to help out in the best way it knows how. That issuer is Wells Fargo, and it was recently announced that they will be expanding its Wells Fargo Cash Back Card program to give cardholders the ability to pay on their home equity loan principal by simply using their credit card.
So how does it work? Under this program all eligible purchases made with either the cash back card or Wells Fargo Home Rebate Card earns cardholders a 1 percent rebate which goes toward the mortgage’s principal. This rebate is then applied in $25 increments and has no cap on the amount of rebates cardholders can earn.
For Wells Fargo, cardholders using rewards they have accrued to go toward their principal on their home mortgage loan is nothing new. In fact since 2007, when their Home Rebate Card was first introduced, more than $10 million has been applied to home loans. This recent expansion however is something new as they look to capitalize on the growing amount of cardholders who now have home equity lines of credit, which have skyrocketed due to historically low interest rates.
What is your opinion on a credit card that puts cash back earned toward your mortgage?