Owning fur babies can be a costly endeavor, especially when unexpected emergencies arise. As a pet owner who once had to pay a hefty sum for a vet visit due to a pet swallowing a foreign object, I can attest to the financial strain it can cause.
Image courtesy of Nibbles.
Introducing the Nibbles credit card, issued by Lead Bank, which offers a range of pet-related benefits, with the most significant being pet insurance coverage of up to $10,000 annually for accidental injury and illness. While the card does come with a steep $249 annual fee, the value it provides in terms of pet insurance coverage can outweigh the cost, especially when compared to standalone pet insurance policies.
However, not all pets are eligible for Nibbles’ insurance at the moment. The company has plans to expand its offerings to a wider range of pets in the future. In the meantime, there are restrictions on pet insurance eligibility that potential cardholders should be aware of.
Here’s a closer look at what the Nibbles credit card has to offer.
1. It comes with valuable pet insurance …
The Nibbles credit card provides pet insurance coverage of up to $10,000 per year for accidental injury and illness, usable at any licensed vet in the U.S. With 80% coverage and a maximum deductible of $250, the card’s insurance benefits are on par with other top pet insurance providers.
It’s important to note that the insurance policy covers only one pet, but additional pets can be added for an extra cost, along with optional preventive care coverage for services like annual check-ups and vaccinations.
Pet insurance is a valuable perk that can potentially save cardholders a significant amount of money on annual pet insurance expenses. Additionally, the card simplifies the claims process by automatically initiating claims for vet visits paid for with the card.
2. … But not all pets are eligible for coverage
Nibbles has specific eligibility criteria for pet insurance, generally favoring younger pets without pre-existing health conditions. Older pets with existing health issues may not qualify for coverage. The company is working on expanding eligibility criteria in the future.
Prospective cardholders can check their pet’s eligibility for insurance through Nibbles’ pre-qualification process without affecting their credit score. However, a formal application will require a credit check, which could impact credit scores temporarily.
If a pet doesn’t qualify for coverage, cardholders can still benefit from other features of the card or explore coverage options for a different pet in the future. Nonetheless, the primary appeal of the Nibbles credit card for pet owners lies in its insurance offering.
3. There’s a hefty annual fee, but do the math
While the Nibbles credit card comes with a significant $249 annual fee, the value of the included pet insurance can offset this cost and potentially result in overall savings. Comparing this fee to the average yearly cost of pet insurance in the U.S. highlights the potential cost-effectiveness of the card’s insurance coverage.
As of now, the average annual cost of pet insurance is $676 for dogs and $383 for cats, making the Nibbles card’s insurance offering a competitive choice for pet owners.
4. It “of-furs” rewards …
In addition to pet insurance, the Nibbles card offers 3% cash back on pet-related expenses, such as pet food, grooming, boarding, and vet bills. Non-pet-related spending earns 1% cash back. Points earned can be redeemed for cash back or pet-related expenses, providing cardholders with flexibility in how they use their rewards.
The Nibbles app allows for easy management of rewards and transactions, enhancing the overall cardholder experience.
The unique “pet-related expenses” bonus category sets this card apart, offering potential savings for pet owners based on their pet care needs and habits. While the card does not feature a welcome bonus, the ongoing rewards structure can be beneficial for frequent pet-related spenders.
🤓Nerdy Tip
Nibbles has plans to collaborate with various pet brands in the future to offer exclusive benefits to card members. While these partnerships are not yet in place, they could enhance the value of the card for pet owners.
5. … Though so do others
For those prioritizing pet-related rewards over insurance coverage, alternative credit card options may offer more value at a lower cost than the Nibbles card.
Consider the Best Friends Credit Card, which has no annual fee and earns 5% cash back on eligible pet shop, pet food, and supply store purchases. While it lacks pet insurance, the card’s rewards structure can be more beneficial for some pet owners.
Alternatively, a general cash-back card like the Wells Fargo Active Cash® Card, with its unlimited 2% cash back on all purchases, including pet-related expenses, may be a more straightforward and cost-effective option for pet owners. While it lacks pet insurance, the card offers a welcome bonus and an interest-free promotional period, which can be useful for financing large pet expenses.
Notably, the Nibbles credit card does not provide a 0% intro APR offer, making it less ideal for financing significant pet bills. With a high APR, the cost of carrying a balance on the card can quickly add up.