Toyota Rewards Visa Review

• No Annual Fee: With the Toyota Rewards Visa card, cardholders don’t have to worry about paying an annual fee.
• Bonus of 5,000 Points: There's a bonus of 5,000 points when a cardholder spends $500 in the first 90 days. However, it’s important to note that in order to receive the bonus, that $500 must be spent for other things, outside of a Toyota dealership. Points earned can then be redeemed at the Toyota dealership and are worth $0.01, making the bonus worth for $50 when redeemed for service or parts, or toward a car purchase at a participating Toyota dealership.
• Tiered Rewards on Certain Purchases: The Toyota Rewards Visa offers tiered rewards, with some purchases earning more points. Cardholders earn 5 points per dollar spent at Toyota dealerships and 2 points per dollar on gas, dining, and entertainment. All other purchases earn 1 point per dollar. Because it’s a Visa, this card can be used almost anywhere in the world.

• No Introductory APR: There's no low or 0% introductory APR for balance transfers and new purchases with the Toyota Rewards Visa, unlike some other cards.
• Limited Redemption Options: While it’s possible to redeem rewards for travel, merchandise, and statement credit, the process can be clunky. For example, in order to redeem for travel, cardholders have to go through a non-affiliated party called Montrose, which will send them travel vouchers through the mail. Redeeming rewards for statement credit is somewhat easier, but the denominations are set by the bank and subject to change. The easy method of redemption is at the Toyota dealership, where each point is worth $0.01 when used for parts, service, or a vehicle purchase.
• Foreign Transaction Fee: Unlike some credit cards, this card comes with a foreign transaction fee of 3%. 

For the most part, this card is designed for people who want to earn rewards that they can use at a Toyota dealership, or for those who spend a fair amount of money there.

As a cash back card, the Toyota Rewards Visa is only mediocre, since there’s no guarantee that the statement credit will have the same redemption value as redeeming for services and products at a Toyota dealership. For those who want a tiered cash back rewards card, the Amex Blue Cash Everyday card, with its 3% back at U.S. supermarkets (up to $6,000 per year) and 2% back on gas at U.S. gas stations, and 1% on all other purchases, might be a better choice.

When cardholders spend $500 at places other than a Toyota dealership within the first 90 days, they can receive 5,000 bonus points. When redeemed at a Toyota dealership, this bonus is worth $50.

Many other cards offer much higher bonuses. For example, the Chase Freedom Unlimited card also has no annual fee and provides $200 cash back after spending $500 in the first three months. Plus, the Chase Freedom Unlimited card offers a 0% APR introductory period for 15 months on purchases.

The Toyota Rewards Visa offers a tiered program:

• 5 points per dollar spent at Toyota dealerships
• 2 points per dollar on dining, entertainment, and gas
• 1 point per dollar on everything else

Rewards can be redeemed at participating Toyota dealerships for a value of $0.01 a point. It’s possible to use points to pay for service, parts, and even toward a vehicle purchase.

Other redemption options include statement credit, gift cards, merchandise, and travel. However, there are a few hoops to jump through, and redemption rates are set by the parties that administer the separate programs. 

For example, you can request a statement credit from the issuing bank, but the denominations are listed by the bank, and you’re limited as to which you can choose. Travel fulfillment is through Montrose, and a third party called Hinda administers the program for merchandise and gift cards. 

All of these redemption options have their own processes and redemption rates, which can make it difficult to actually redeem points for anything other than Toyota purchases or a statement credit.

The Toyota Rewards Visa doesn’t have a points transfer program.

The best option for maximizing rewards is to use them at a Toyota dealership, after taking advantage of the higher rewards earnings tiers in some areas. 

In 2018, the average consumer spent $3,226 on entertainment and $3,459 on dining out. These spending categories earn 2 points per dollar with the Toyota Rewards Visa, resulting in a potential of 13,370 points in those categories alone. When redeemed at a Toyota dealership, 13,370 points would be worth $133.70, which could potentially pay for at least two oil changes a year, depending on what your dealer charges.

To maximize the rewards you earn, you'd want to put all your additional spending at the Toyota dealership on your card and collect the 5 points per dollar.

• Lock It 'Til You Find It

• $0 fraud liability
• Chip technology
• Auto rental collision damage waiver

The Toyota Rewards Visa is issued by Comenity Capital Bank, which is not rated in J.D. Power’s 2019 U.S. Credit Card Satisfaction Study. 

Comenity Capital Bank offers the Comenity app for Android or iOS. The app has a rating of 1.3 out of 5 on Google Play and 3.8 out of 5 in the Apple Store.

Automated customer service is available 24/7. 

One of the most attractive security features with this card is called Lock It 'Til You Find It. It makes it possible to lock your card by signing into your account and clicking a button. If your card is lost or stolen, you can decline all new charges, while keeping your regular subscriptions and streaming services active. Once you find your card, you can unlock it.

Additionally, because it’s a Visa, the Toyota Rewards card comes with $0 liability on fraudulent purchases, as well as a way to receive emergency card replacement within one to three business days. 

For people who expect to spend a fair amount of money at a Toyota dealership and would like to offset some of that with rewards or apply rewards toward the purchases of a new Toyota at participating dealerships, this can be a decent card.

However, the rewards are fairly mediocre, and trying to redeem them for anything other than Toyota parts, service, or vehicles, or a statement credit, can be difficult. For those who want more flexible cash back tiered rewards, a card like the Amex Blue Cash Everyday could be a better choice.