Verizon Launches New Credit Card With No Annual Fee and Big Rewards

The new Verizon Visa Card offers considerable value for the wireless carrier's customers.

Many non-financial companies have released their own credit cards in recent years. Now, Verizon is joining the trend. The Verizon Visa Card officially launched on June 26.

When brands launch credit card products, the results are often underwhelming -- but that isn't the case here. Verizon's new credit card is an impressive no-annual-fee card. It's a uniquely powerful offer Verizon customers should consider.

Perks of the Verizon Visa Card

Earn up to 4% back: The highlight of the Verizon Visa Card is its rewards. Here's how much you'll earn back with this card:

• 4% on gas and groceries
• 3% on dining
• 2% on Verizon purchases
• 1% on all other purchases

Those are excellent earnings rates in several popular spending categories. In fact, the Verizon Visa Card rivals the best cash back credit cards. The Verizon card has one main difference: it doesn't earn cash back. It earns Verizon Dollars. You can redeem these for any purchases with Verizon.

While Verizon Dollars are less flexible than cash back, this shouldn't be a problem for cardholders. You need a Verizon account to get the card. Simply apply your rewards toward your monthly bill to redeem your savings.

Eligible for Verizon Auto Pay discount: The Verizon Visa Card is the only credit card eligible for Verizon's Auto Pay discount. If you don't have the card, then you must use a debit card or checking account as your payment method to get the discount. The discount is either $5 or $10 per line, per month (depending on your plan).

The Auto Pay discount is a fantastic feature that can benefit any Verizon customer. When you set up Auto Pay with this card, you can get a discount on your bill and earn 2% back every month. Without the Verizon Visa Card, you'd need to choose between paying by debit card to get the discount or paying by an alternate credit card to earn credit card rewards. With a Verizon card, you can have both.

Up to $100 in credits: You can get up to $100 in credits on your Verizon wireless or Fios bill in the 24 months after you open the Verizon Visa Card. You'll also receive a credit of $4.17 every month that you pay your bill in full using either your Verizon card or Verizon Dollars.

No annual or foreign transaction fees: This card charges no annual fee. You can also use it internationally without any foreign transaction charges.

Who's eligible?

You can apply for the Verizon Visa Card if you're a Verizon wireless customer. You must be the Account Owner or Account Manager, to apply. Additionally, you are only eligible if the account has 10 phone lines or less. This card isn’t available for wireless accounts with more than 10 phone lines or Verizon Prepaid accounts.

How to apply

You can apply on the web, in the My Verizon app, in stores, or by calling customer service.

Should you get Verizon's new credit card?

If you have a Verizon wireless account, then you should strongly consider getting the Verizon Visa Card. It earns strong bonus rewards in a variety of categories -- you could easily use it for all your spending. Even if you only use the card to pay your Verizon bill, you'll save $5 or $10 per line every month from the Auto Pay discount and get 2% back. That's a deal you won't get from any other credit card.

Updated Review: See Motley Fool Money's full Verizon card review.