New Xbox Mastercard Pays Cash Back for Xbox Purchases and Netflix Subscriptions

For some people, there's no better way to enjoy some downtime than to get lost in an Xbox game. But now, fans have an opportunity to get even more benefits from Xbox with the introduction of the new Xbox Mastercard by Barclays.

The details on the new Xbox Mastercard

The new Xbox Mastercard comes loaded with perks. Cardholders will be eligible to earn 5x reward points on Xbox and Microsoft Store purchases. The card also offers 3x points on streaming services like Netflix and Disney+ as well as 3x points on delivery apps like DoorDash and Grubhub. All other purchases, like gas and groceries, earn one point per $1 spent.

Points can be redeemed for games and add-ons for Xbox systems. And new credit card holders will be eligible for a one-time 5,000-bonus-point payday (a $50 value) after their first purchase.

Plus, new Game Pass members can enjoy three months of Xbox Game Pass Ultimate after their first purchase. Those who are already Game Pass members can gift this perk to a friend.

The Xbox Mastercard can also be personalized with different designs. And cardholders get protection against fraudulent purchases. All of this is available with no annual fee.

When to apply

If you're interested in the Xbox Mastercard, you should know that the card will become available to Xbox Insiders only beginning Sept. 21. The card will then be expanded to general applicants in waves during the fall.

Should you get the Xbox Mastercard?

Clearly, the Xbox Mastercard offers plenty of benefits. And since there's no annual fee, you may be tempted to sign up for it once that option becomes available to you.

But before you apply, think about your financial situation. If you already have credit card debt, you may want to hold off on applying for a new card until your current balances are whittled down. If you add another card to your personal mix, you might be tempted to spend more and add to your debt when you're trying your hardest to do the opposite.

Also, you may want to hold off on applying for the Xbox Mastercard, or any new credit card for that matter, if you're on the cusp of submitting an application for a large loan, like a mortgage. Lenders will look at your existing credit mix to assess you as a loan candidate. If they see a bunch of credit cards and no other loan types, like installment loans, that could raise a red flag.

Also, any time you apply for a new credit card, your credit score generally takes a small hit after a hard inquiry is done on your credit report. The five- or 10-point drop that might ensue, however, could push your credit score downward just enough that you end up having trouble qualifying to borrow, or you wind up with a borrowing rate you're less happy with.

But if you don't have credit card debt and you're not about to apply for any large loans, then it could pay to keep tabs on when the Xbox Mastercard will become available to you. It could end up being a great card to carry in your wallet.