Here's How to Maximize Your Value From the Robinhood Gold Card
KEY POINTS
- The Robinhood Gold Card's best perk is 3% cash back, so use it for most or all of your spending.
- You can add authorized users free of charge, and you'll earn cash back on the purchases they make.
- Use your rewards to invest more, and always pay your full credit card bill so you aren't charged any interest.
Robinhood recently announced its first credit card, and while it's not available yet, it's going to be in high demand. The Robinhood Gold Card earns 3% cash back on all categories, which is unheard of. A flat rate of 2% everywhere used to be as good as it gets, so Robinhood is offering an amazing deal.
You need to be a Robinhood Gold member to get the card. A subscription costs $5 per month, and it includes plenty of perks, including a high interest rate on uninvested cash and professional research from Morningstar.
Robinhood Gold is a $5 per month subscription add-on for users of the Robinhood investing app and delivers excellent value. Subscribers receive Robinhood's highest savings rate on uninvested cash, access to professional investing research, higher deposit limits and 3% match on Robinhood retirement IRA contributions.
$5 monthly or $50 yearly
N/A
Get a 3% match on IRA contributions each year with Robinhood Gold
On Secure Website.
If you're planning to apply for the Robinhood Gold Card when it's available, here are a few tips to help you get the most out of it.
Use it for all your spending (unless you have another card that earns more)
The biggest benefit of the Robinhood Gold Card is that it earns a high cash back rate everywhere you go. So it makes sense to use it everywhere and earn as much cash back as possible. That includes when you travel abroad, as there's no foreign transaction fee.
The only time you shouldn't use this card is when you have other rewards cards that will earn you more. For example, some grocery credit cards earn as much as 6% back at supermarkets. If you have one of those, you'd still be better off using that at the grocery store. But if you're going for a one-card wallet where you use the same card for all your spending, this is easily one of the best credit card options.
Add trusted family members as authorized users
There's no annual fee for the Robinhood Gold Card, and you can also add authorized users free of charge. Cardholders you add can be of any age. If you have children, you could add them to your account so they can start building credit. Not only is this convenient, you'll earn cash back on your authorized user's purchases, too.
Remember that you're responsible for any charges authorized users make. Only add people you trust completely to your credit card, such as your spouse and children. It's definitely not the best idea to add distant relatives or friends just to earn some extra cash back.
Redeem and invest your rewards with Robinhood
Robinhood gives you several ways to redeem your rewards:
- Cash back in your Robinhood brokerage account
- Book travel in the Robinhood Gold Card travel portal
- Make purchases in the shopping portal of the Robinhood Credit Card App
- Purchase gift cards from a variety of merchants through Robinhood's rewards portal
You get the same value for your rewards with any of these, so none of them are bad options. But because this card makes it easy and convenient to invest your rewards, it's wise to take advantage.
If you redeem your rewards as cash back in your Robinhood account, you can then invest them in anything Robinhood offers, including individual stocks and exchange-traded funds (ETFs). Over time, this could significantly boost how much you're able to invest.
Let's say you spend $30,000 per year on your Robinhood Gold Card. That's $900 cash back you could invest. If you do that for 30 years and get an 8% annual return, it would add $110,111 to your portfolio.
Always pay your Robinhood credit card in full
The most important thing to remember with this and other credit cards is that they're only a good deal when you pay in full. If you carry a balance, then you can be charged interest. Those interest charges will most likely outweigh all the cash back you've earned.
To stay out of credit card debt, only use your card for purchases you can afford. Pay the full balance every month, and you'll be earning cash back without any interest charges.
The Robinhood Gold Card is expected to be available later this year. If you're interested, you can join the waitlist on the card page -- all you need to do is provide your email address. Once you get it, use it for your regular bills, invest your rewards, and pay in full. If you do that, you're sure to get quite a bit of value from it.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
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