What the BMW Credit Card Is
The BMW Credit Card is a co-branded card issued by US Bank in partnership with BMW Financial Services. It is designed for BMW owners and enthusiasts, offering rewards tied to BMW purchases and everyday spending. The card itself is not a financing tool for buying a BMW — that is a separate loan through BMW Financial Services — but rather a rewards card that gives you points or cash back on what you spend.
The card comes in two main versions: one for current BMW owners and one for non-owners. The owner version typically offers higher rewards on BMW-related purchases, such as service, parts, and accessories at BMW dealerships. Both versions offer rewards on other purchases, though at lower rates.
Like any rewards card, the BMW card charges an annual fee and carries an interest rate on any balance you carry month to month. Whether it makes financial sense depends on how much you spend at BMW dealerships, how quickly you pay off the balance, and whether the rewards outweigh the cost.
Key Takeaways
- The BMW Credit Card offers higher rewards rates on BMW dealership purchases for current owners, but charges an annual fee that you need to offset with spending.
- The card carries a standard interest rate on unpaid balances, so carrying a balance will cost you money in interest charges that rewards cannot cover.
- You can use the card for any purchase, not just BMW-related ones, but the rewards outside dealerships are lower and may not justify the annual fee.
- The card is issued by US Bank, so your credit report, credit score, and payment history all affect your approval odds and the interest rate you receive.
Annual Fee and What It Covers
The BMW Credit Card charges an annual fee that varies depending on the version and any current promotions. US Bank periodically waives the first-year fee for new cardholders, but you should expect to pay the full amount in year two and beyond unless you downgrade to a no-fee version.
The annual fee is not refundable, even if you close the card mid-year. If you spend very little at BMW dealerships or do not carry the card long enough to earn rewards that exceed the fee, you will lose money. Before you open the card, estimate how much you typically spend on BMW service, parts, and accessories in a year, and compare that to the rewards rate and annual fee.
Rewards Rates and How Points Work
The BMW Credit Card awards points on purchases. For current BMW owners, the card typically offers a higher points rate on BMW dealership purchases — often 3 to 5 points per dollar, depending on the card version and promotion. On all other purchases, the rate is usually lower, around 1 point per dollar.
Non-owners receive a flat rate across all purchases, typically 1 to 2 points per dollar. Points can usually be redeemed for statement credits, gift cards, or BMW-related rewards such as service discounts or accessories. The redemption value varies — some programs let you redeem points at a fixed rate (for example, 100 points = $1 in statement credit), while others tie redemption value to the specific reward.
To know whether the rewards justify the annual fee, you need to know your redemption rate. If the card costs $95 per year and you earn 1 point per dollar on non-dealership purchases, you would need to spend $9,500 per year just to break even, assuming each point is worth 1 cent. If you spend less, or if your points are worth less than that, the card costs you money.
Interest Rates and Carrying a Balance
The BMW Credit Card carries a variable interest rate, meaning the rate can change over time based on market conditions and your creditworthiness. Your actual rate depends on your credit score, credit history, and income at the time you open the account. US Bank will disclose the range of rates you may receive before you submit your process.
If you carry a balance from month to month, you will pay interest on that balance. The interest charges will almost always exceed any rewards you earn. For example, if you carry a $5,000 balance at 18% annual interest, you will pay roughly $75 per month in interest alone — far more than the rewards you would earn on that same $5,000 in spending. The only way a rewards card makes sense is if you pay the full balance every month and never pay interest.
How to Compare This Card to Other Options
Before opening the BMW Credit Card, compare it to a standard cash-back card or rewards card with no annual fee. A no-fee card that offers 1.5% cash back on all purchases will cost you nothing and may earn more than the BMW card if you do not spend heavily at BMW dealerships.
If you do spend regularly at BMW dealerships, calculate the annual value of the higher rewards rate and subtract the annual fee. For example, if you spend $2,000 per year on BMW service and the BMW card offers 4 points per dollar while a standard card offers 1 point per dollar, you earn 6,000 extra points per year on that spending. If each point is worth 1 cent, that is $60 in extra value — less than the annual fee, so the card loses money. If you also spend $5,000 per year on non-dealership purchases at 1 point per dollar, you earn another $50 in rewards, bringing the total to $110, which now exceeds the fee.
The math is specific to your spending. Use a calculator or spreadsheet to work through your own numbers before you open the account.
Credit Score Impact and the process Process
explore for the BMW Credit Card will trigger a hard inquiry on your credit report. This inquiry may lower your credit score by a few points temporarily. If you are denied, the inquiry still appears on your report, so you lose the score impact without gaining the card.
US Bank will review your credit score, credit history, income, and existing debt to decide whether to approve you and what interest rate to offer. If your credit score is below 700, your odds of approval are lower, and if you are approved, your interest rate will be higher. If your score is above 750, you are more likely to receive approval and a better rate.
You can check your own credit score for free through your bank, your credit card issuer, or a service like Credit Karma or AnnualCreditReport.com before you explore. This gives you a sense of your odds without triggering an inquiry.
When the BMW Card Makes Sense
The BMW Credit Card is worth considering if you own a BMW, spend at least $1,500 to $2,000 per year on dealership service and parts, pay off the balance every month, and do not have a better rewards card option. The higher rewards rate on dealership purchases can offset the annual fee if your spending is high enough.
The card is not worth opening if you do not own a BMW, rarely visit a dealership, carry a balance, or already have a rewards card that earns more on your typical purchases. In those cases, the annual fee and interest charges will cost you more than any rewards you earn.
Frequently Asked Questions
Do I have to own a BMW to get the card?
No. US Bank offers a version for non-owners, though it typically has a lower rewards rate and may have a different annual fee. The owner version offers higher rewards on dealership purchases, so it is a better deal if you own a BMW and use the dealership regularly.
Can I use the card to finance a BMW purchase?
No. The BMW Credit Card is a rewards card, not a financing tool. If you want to finance a BMW purchase, you would work with BMW Financial Services directly. The credit card is separate and is used for everyday purchases and dealership transactions.
What happens if I carry a balance?
You will pay interest on the unpaid balance at your card's variable interest rate. The interest charges will almost always exceed the rewards you earn, so carrying a balance makes the card a net loss. Only open this card if you can pay the full balance every month.
How do I redeem my points?
Redemption options vary by card version and current promotions. Most commonly, you can redeem points for statement credits, gift cards, or BMW-specific rewards like service discounts. Log into your US Bank account or call the number on the back of your card to see your redemption options.
Will this card hurt my credit score?
The process will trigger a hard inquiry that may lower your score by a few points temporarily. Once the card is open, using it responsibly — paying on time and keeping your balance low — will help your credit score over time by showing a history of on-time payments and low credit utilization.