Fur babies can be expensive. And no one knows that as well as the pet owner who has had to shell out thousands of dollars for an emergency vet visit because their dog swallowed a whole glove. (That may or may not be a true story this author has suffered.)

The Nibbles credit card, issued by Lead Bank, offers paws-itively rewarding pet-related benefits, the most valuable of which is pet insurance up to $10,000 yearly for accidental injury and illness. Yes, the card’s $249 annual fee is large, but if you’ve priced pet insurance lately, you’ll know how much of a deal that could actually be.

Still, not all furry friends will qualify for Nibbles’ insurance. The company, which launched in December 2024, says it plans to offer insurance policies to a broader range of pets as its business grows. But for now, there are limitations to pet insurance eligibility.

Here’s what to know about the Nibbles credit card.

The Nibbles card covers pet insurance up to $10,000 in yearly health coverage for accidental injury and illness, which can be used at any licensed vet across the U.S. Nibbles offers 80% coverage and a maximum deductible of $250, which is comparable to other top pet insurance providers.

Note that the card comes with an insurance policy for one pet only. But holders can add additional pets as well as preventive care coverage — for things like annual visits, vaccines, teeth cleanings, etc. — for an additional cost.

Pet insurance is a unique and valuable perk that can potentially save cardholders hundreds of dollars on their pet insurance policies yearly. Plus, the card can also help minimize headaches that can come with the insurance claims process itself. For instance, when you use your card to pay for a vet emergency, Nibbles can automatically initiate the claims process for you because the company will have the details of not only your pet insurance policy, but also the charge at the vet.

According to the company, younger pets with no underlying health conditions will generally meet Nibbles’ eligibility criteria for pet insurance. However, older pets with established conditions will most likely not be approved. Plus, there may be additional limitations around the eligibility process that Nibbles says it’s working to smooth out for the future.

Before you formally apply for the card, you can check whether your pet is eligible for insurance with Nibbles’ pre-qualification process, which won’t affect your credit scores. Once you apply, the card issuer will then perform a hard pull on your credit report, which may temporarily lower your credit scores.

If your pet doesn’t qualify for coverage, you can still get the card and use its other benefits or see whether another pet is eligible later on. Yet, for pet owners, the Nibbles credit card’s most compelling feature is its insurance. Without it, the card becomes significantly less valuable.

The card comes with a steep $249 yearly fee, which is much higher than what a typical non-premium rewards credit card costs to hold. However, the card’s included pet coverage easily defrays the cost of carrying it, and in fact may end up saving you a significant sum overall.

As of this writing, the average cost of pet insurance in the U.S. is $676 per year for dogs and $383 per year for cats for accident and illness coverage, according to the most recent data from the North American Pet Health Insurance Association.

In addition to insurance coverage, the Nibbles card earns 3% cash back on pet-related expenses, including pet food, grooming, boarding, dog walking, sitting services, training services and vet bills. The card also offers 1% cash back for all other non-related spending. (Technically, the card earns points, but they’re worth an industry-standard penny each when redeemed for cash, in the form of statement credit.) You can also redeem points toward pet-related expenses and merchandise credit.

Redemptions can be handled through the Nibbles app, where you can also manage and see your transaction history.

“Pet-related expenses” is a rare bonus category, and depending on your pet’s needs and habits, it can be a lucrative one, too. Just note that, unlike other rewards credit cards with three-digit annual fees, there’s no welcome bonus.

If pet insurance is not a priority and you’re in the market for a card that will reward your pet-related spending, other options could be more beneficial and less costly than the Nibbles card.

For a pet-centered rewards card, consider the $0-annual-fee Best Friends Credit Card. It doesn’t come with pet insurance, but it earns 5% cash back on eligible pet shop, pet food and supply store purchases for the first $5,000 per calendar year, then 1% thereafter. (The card’s yearly cap is far higher than what the average pet owner spends on their animal per year.) In addition, Credit One — the card’s issuing bank — periodically donates 1% of your purchases to Best Friends Animal Society.

Alternately, a general flat-rate cash-back card would be less complicated and would reward you well for all of your spending, including pet-related purchases. The $0-annual-fee Wells Fargo Active Cash® Card, for example, earns an unlimited 2% cash back on all eligible purchases. And while you won’t get pet insurance with the card, you will get both a welcome offer and an interest-free promotional period, which could help you finance a large pet bill. Cardholders get 0% intro APR on Purchases for 12 months and 0% intro APR on Balance Transfers 12 months from account opening on qualifying balance transfers, and then the ongoing APR of 19.24%, 24.24%, or 29.24% Variable APR.

Notably, the Nibbles credit card doesn’t have any such 0% intro APR offer, so using it to finance, say, a major pet surgery or other expense would get expensive very quickly. (As of this writing, the card’s maximum APR was nearly 30%.)