Review of the Upgrade Cash Rewards Visa Card
When looking for rewards on credit card purchases, the high-reward cards often seem out of reach, especially if your credit history is a bit rocky or you’re just starting to build your credit. Enter the Upgrade Rewards Cash Rewards Visa – a fresh take compared to standard credit cards. It’s designed to be more accessible, offering 1.5% cashback on payments without the need for a security deposit.
Let’s dive deep into what this card offers, its pros and cons, and see if it aligns with your financial needs.
About the Upgrade Card
The Upgrade Cash Rewards Card is just one of the suite of products offered by Upgrade, a comprehensive financial platform that encompasses personal loans and rewards checking accounts. If you’re already an Upgrade user with a positive track record, getting their credit card becomes even more straightforward.
Interestingly, Sutton Bank issues four variants of the Upgrade Card. All these cards are free from annual and foreign transaction fees but differ based on their primary feature:
- Cash Rewards: Offers 1.5% cashback on payments for those with average to excellent credit. This review revolves around this particular card.
- Triple Cash Rewards: Provides 3% back on categories like home, auto, and health, while other purchases earn 1% back.
- Bitcoin Rewards: Earn 1.5% back in Bitcoin as opposed to traditional cashback.
- Upgrade Card: Designed for those looking to build credit, it comes without cashback benefits but also doesn’t require an annual fee or security deposit.
Differentiating the Upgrade Card from Standard Credit Cards
Although the Upgrade Card shares commonalities with traditional credit cards, such as being usable for various purchases and having a monthly payment system, it fundamentally operates more like a closed-end loan. The card’s unique feature is its fixed monthly payment structure, rather than the usual minimum payment system.
Furthermore, it may offer a higher preset spending limit, reflecting a fixed-rate personal loan. But caution is advised: always spend within your means to avoid excessive debt. Balance transfers and ATM cash advances aren’t supported, but transferring funds directly to your bank account is a viable alternative.
Who’s Eligible?
Anyone above 18 years with average to excellent credit can apply. Credit scores starting at 600 might be considered, but 640 and above is recommended. Other factors will also weigh in during the approval process.
Upgrade Cash Rewards Card Fee Structure
- Annual Fee: None.
- Foreign Transaction Fee: None.
- Credit Line APR: Ranges from 8.99% to 29.99%.
- Balance Transfer APR: Not applicable.
Advantages and Disadvantages
Advantages:
- No yearly charges.
- Encourages full balance payments with its cashback system.
- Depending on qualification, high credit limits may be available.
- Fixed payments mean you always know your payoff date.
- Potential for reduced APY with automatic payments.
Disadvantages:
- Signup bonus requirements are stringent.
- Lacks balance transfer or introductory 0% APR offers.
- Doesn’t allow adding of secondary cardholders.
Looking at Alternatives
The Upgrade Cash Rewards Visa stands out in the market but there are competitors worth considering:
- Tomo Credit Card: Offers rewards, credit improvement, and avoids balance carry-over.
- Standard Cash Back Cards: Might be preferable for those eligible.
- Balance Transfer Cards: Ideal for those keen on consolidating credit card debt.
- Rewards Debit Cards: Offers cashback but directly pulls from your bank.
FAQs
- Does Upgrade report to credit bureaus?: Yes, to Experian, Equifax, and TransUnion.
- Does applying affect my credit score?: Prequalification doesn’t, but formal application does.
- How can I get in touch with Upgrade?: Call 1-844-319-3331 at specified timings for queries or to report unauthorized transactions.
Final Thoughts
The Upgrade Card presents a tantalizing option for those looking for cashback, potentially lower APRs, and fixed repayment dates. Yet, if you maintain excellent credit and clear your dues monthly, or are inclined towards travel rewards, traditional credit cards might serve better. Ensure you align your choice with your financial habits and goals.
Upgrade Card Rating: 8.0/10
Strengths:
- No yearly charges.
- Encourages full balance payments.
- Potentially high credit limits.
- Predictable payoff dates.
- Discounted APY with auto-payments.
Weaknesses:
- No Balance transfer or 0% introductory APR offers
- You can’t add secondary cardholders
