The $0-annual-fee Midas credit card can help reduce some of the costs that come with owning and maintaining a car. Issued by Comenity Bank, the card offers exclusive perks like a $25 discount on any oil change and free tire repair at Midas locations.
Cardholders can also get a break from interest with the card’s promotional deferred-interest offer. However, deferred interest offers can be tricky and potentially costly for cardholders in the long run. And beyond its Midas-specific perks, the card is lacking in benefits like ongoing rewards and a welcome offer.
Most people would be better served by a general rewards credit card, or one with a true 0% intro APR offer.
Here’s what to know about the Midas credit card.
1. It doesn't earn rewards
The Midas card won’t earn rewards for any of your spending. Even more restrictive, the card can only be used at Midas locations, so it can’t be a top-of-wallet option for making general purchases.
Co-branded products like the Midas card are typically restrictive in terms of where you can use them or how you can redeem rewards. General rewards cards — those not tied to any retailer or brand — tend to offer more flexibility because they don’t restrict where you can use the card or its rewards.
2. There’s a deferred interest offer
The Midas card features two financing options:
- No interest for 12 months on purchases of $1,200 or more made at participating locations with your Midas credit card.
- No interest for six months on purchases of $199 to $1,199 made at participating locations with your Midas credit card.
These offers can help stave off interest charges on purchases for a bit — but such deferred interest financing can be tricky. That’s because unlike true 0% APR offers, interest will continue to accrue in the background during the promotional period. So if you don’t pay off what you owe in full by that time, you’ll have to pay all the interest that's been accumulating since the date of the original purchase. This can get expensive, particularly considering that the card’s ongoing APR for purchases nears a sky-high 36% (as of this writing).
If you’re about to make a large purchase, car or non-car related, or you’re in search of a card that offers a break from interest, see NerdWallet’s list of the best 0% APR credit cards.
3. There’s no welcome offer
Beyond its interest-free offers, the Midas card doesn't come with any welcome offers that could help defray a large repair.
NerdWallet’s list of the best credit card bonuses for new cardholders can help you find a more rewarding card option.
Although you can’t earn rewards with the card, it can offer some decent savings on Midas-related spending. These offers include:
- $25 off any oil change when you use your card for an oil change purchase. Note that there’s a $25 minimum purchase required.
- Free tire repair at any participating Midas location.
- Free tire rotation at any participating Midas location.
Plus, the card doesn't charge an annual fee, so it won’t hurt to keep it in your wallet.
5. There may be a better card for your needs
If the Midas card appeals to you because of its financing promotions, consider a card that features a true 0% APR offer, like the Wells Fargo Active Cash® Card. Cardholders receive 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 18.49%, 24.49%, or 28.49% Variable APR.
The Wells Fargo Active Cash® Card also makes sense for those looking for a card that can offer savings on car-related spending because it earns an unlimited 2% cash back on all eligible purchases. It also features a welcome bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. The card’s annual fee is $0.
