5 Things to Know About the Neon Money Club Cream Card
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The Neon Money Club Cream American Express Card, issued by Evolve Bank & Trust, is a luxe-looking metal card with a matte cream finish that earns rewards you can redeem toward investments. You will be able to use the card wherever American Express cards are accepted, although it comes with a relatively hefty annual fee.
The Neon Money Club is a technology company offering several products in addition to the Neon Money Cream American Express Card. This includes the Cream Wellness Studio, which is a collection of meditation and yoga videos.
Here are five things to know about the Neon Money Cream American Express Card.
1. The card earns more rewards if you invest them
The Neon Money Cream American Express Card earns a flat 1.5 points per $1 spent when you opt to redeem your rewards for a statement credit. But you can double that to 3 points per dollar spent if you redeem your rewards in the form of Investment Dollars to use at Neon Money Club. This allows you to invest your rewards in the stock market, at least on a limited basis (see No. 3 below). However you redeem them, points are worth 1 cent each.
You can earn up to 800 additional points per month by connecting with up to four other Neon Money Cream American Express Card holders in the Neon Money Club app.
2. The annual fee is pricey
To hold the Neon Money Club Cream AmEx, you'll pay $128 per year. At that price, it makes the most sense to redeem rewards for investments so you can earn the 3-points-per-dollar rate. Otherwise, a 1.5-point rate isn’t nearly as compelling — there are already many no-annual-fee rewards credit cards that earn at least that much.
If you spend $4,267 per year on the card (that’s about $356 per month) and earn 3 points per dollar back, you’ll offset the annual fee, not taking into account any investment gains or losses.
If you’re choosing to invest, you can’t beat a rewards rate of 3% back on all purchases. But, if you want a card with no annual fee, you can still get a decent rewards rate and invest the cash back on your own.
Some rewards credit cards feature even higher rates. The Chase Freedom Flex®, for example, earns 5% cash back in quarterly bonus categories on up to $1,500 in combined spending each quarter when you activate them; 5% back on travel booked through Chase; 3% back on dining (including takeout and delivery); 3% back on drugstore purchases; and 1% back on all other purchases. It also has a sign-up offer: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. As an option, you can redeem this cash back into most U.S. checking accounts and then invest it on your own.
If you prefer to maintain the simplicity of a flat rewards rate on all purchases, a card like the Wells Fargo Active Cash® Card earns 2% cash back on all qualifying purchases. There’s also a sign-up bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. You’ll need a Wells Fargo checking account to redeem rewards as cash, but if you’re already a customer it’s an option to consider.
3. For now, you have limited investment choices
If you redeem your rewards toward investing, you have three exchange-traded funds (ETFs) to choose from: the SPDR Portfolio S&P 500 Value ETF, the Vanguard S&P 500 ETF and the iShares S&P 500 Growth ETF. As of this writing, new cardholders get a bonus of $10 in an S&P 500 ETF.
If you cash out your investments within three months, you’ll forfeit the doubled rewards rate, so you’ll only earn 1.5 points per dollar in that case.
Keep in mind that investment returns are not guaranteed. Your redeemed rewards can increase or decrease in value depending on market performance over time.
4. Apply without affecting your credit scores
When you initially apply for the Neon Money Cream American Express Card, you’ll be subject to a soft credit inquiry, so your credit scores won’t be affected. If you accept the terms you’re offered, that’s when a hard credit inquiry will take place, which can affect your credit scores.
5. The physical card takes time to arrive
Forget the usual seven to 10 business days to receive a card after your application is accepted. With the Neon Money Cream American Express Card, you “reserve” your card when you apply. Limited numbers of cards are produced at a time, and you’ll be notified when your card is ready. There’s no specific time frame given on the card’s application page online.
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