Owning a pet can be a costly endeavor. Anyone who’s faced a hefty vet bill after their dog decided a non-food item was a tasty treat understands this all too well.
The Nibbles credit card, issued by Lead Bank, aims to alleviate some of those financial burdens for pet owners. One of its main benefits is pet insurance, offering up to $10,000 in yearly coverage for accidental injuries and illnesses. But does this card’s potential savings outweigh its downsides?
Valuable Pet Insurance: A Key Benefit
The Nibbles card’s pet insurance is a significant draw. It provides up to $10,000 in annual coverage for accidents and illnesses, usable at any licensed vet in the U.S. With 80% coverage and a maximum $250 deductible, Nibbles is comparable to other leading pet insurance providers. However, this insurance only covers one pet at most, but additional pets and preventive care coverage can be added for an extra fee. This feature has the potential to dramatically cut down your yearly pet-related expenses by hundreds of dollars, and also manages the often complex claims process. For example, if you use the card to pay for an emergency vet visit, the claims process can be triggered automatically because the company will have access to both your pet insurance policy details and the transaction with the vet.
Eligibility Limitations
While the pet insurance benefit is attractive, not all pets are eligible. Nibbles generally prioritizes younger pets without pre-existing conditions. Older animals with established health issues may be declined. Nibbles says they are working to make the eligibility process easier. Before you even apply, you can check your pet’s eligibility through a pre-qualification process, which won’t affect your credit score. However, a formal application will trigger a hard credit inquiry, which may temporarily lower your score. If your pet doesn’t qualify, you could still opt for the card and take advantage of its other benefits, or you could see if another pet becomes eligible.
The Annual Fee: Weighing the Costs
The Nibbles credit card comes with a $249 annual fee, which is higher than many other rewards cards. However, that fee is offset by the included pet insurance.
The average yearly cost for pet insurance in the U.S. hovers around $676 for dogs and $383 for cats when looking at accident and illness plans, according to the North American Pet Health Insurance Association.
Earning Rewards
In addition to the pet insurance, the Nibbles card offers rewards. Cardholders earn 3% cash back on pet-related expenses, like pet food, grooming, and vet bills. All other spending earns 1% cash back. The card earns points, though they are worth one cent each when redeemed for cash. You can also redeem points for pet-related expenses and merchandise credit. Reward redemption happens through the Nibbles app. The “pet-related expenses” bonus category is a rare perk that can be very useful depending on your pet’s needs. However, unlike other cards that charge a significant annual fee, there isn’t a welcome bonus.
Alternative Options
If pet insurance is not a priority, other cards may be a better choice. The Best Friends Credit Card has no annual fee and it earns 5% cash back on eligible pet shop, pet food and supply purchases for the first $5,000 per calendar year, then 1% thereafter. Also, Credit One, which issues the card, donates 1% of your purchases to the Best Friends Animal Society. A general flat-rate cash-back card would also work. The Wells Fargo Active Cash® Card has no annual fee and earns an unlimited 2% cash back on all eligible purchases. This card also comes with a welcome offer and a 0% introductory APR period, which could be helpful if you need to finance a large bill.
The Bottom Line
The Nibbles credit card presents an interesting value proposition for pet owners. The pet insurance is definitely a standout benefit, which can save you money and reduce stress. However, the high annual fee and strict eligibility rules mean it may not be right for everyone. Before applying, assess your own pet’s needs and carefully consider whether this card aligns with your financial goals.
