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Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
The Upgrade Card is a truly one-of-a-kind card product. You can use it to make purchases like you would with a credit card, but they're technically loans with fixed payments. Unlike a traditional credit card, an Upgrade Card also lets you borrow cash for no additional fees. Read our in-depth Upgrade Card review to see if you should apply for one.
Upgrade Cash Rewards Card
Fair (300-669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
14.99% - 29.99%, variable
Rewards
1.5% cash back
Annual Fee
$0
Welcome Offer
N/A
A card with a unique approach in that it technically offers a loan product with fixed payments, plus cash rewards.See Upgrade's disclaimer for important details.
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
| Offer | Our Rating | Welcome Offer | Rewards Program | APR | Learn More |
|---|---|---|---|---|---|
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Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Discover will match all the cash back you've earned at the end of your first year. N/A | 1% - 5% Cashback Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. |
Intro: Purchases: 0%, 15 months Balance Transfers: 0%, 15 months Regular: 18.24% - 28.24% Variable APR |
|
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Up to $300 cash back Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases. | 1.5% - 5% cash back Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases |
Intro: 0% Intro APR on Purchases and Balance Transfers for 15 months Purchases: 0% Intro APR on Purchases, 15 months Balance Transfers: 0% Intro APR on Balance Transfers, 15 months Regular: 20.49% - 29.24% Variable |
Apply Now for Chase Freedom Unlimited®
On Chase's Secure Website. |
|
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
75,000 Miles 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening | 2X-5X miles Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. |
Intro: Purchases: N/A Balance Transfers: N/A Regular: 19.99% - 29.99% (Variable) |
This card is a good fit for: Consumers who want a card they can use for purchases and loans. Those who have had credit card debt may also prefer this card's fixed payment structure.
The Upgrade Card gives you access to a series of loans. It's technically not a credit card, although it does have some similarities to credit cards as well as other financial products.
When you're approved for an Upgrade Cash Rewards Card, you receive a credit limit, a fixed APR, and a draw length. Here's how each of these work:
Transactions made with the Upgrade Cash Rewards Card are called draws, and there are two ways to draw money with it:
Unlike credit cards that offer a grace period before purchases have any interest charges, all spending with an Upgrade Cash Rewards Card starts accruing interest immediately.
After each billing period, transactions are combined into one balance. Based on that balance, Upgrade provides a fixed payment amount. That's the amount required to pay off the balance by the end of the draw length. If you want, you can pay more than the payment amount, including paying off the full balance at once.
Learn more: Best Visa Credit Cards
The Upgrade Cash Rewards Card provides a mix of popular credit card benefits and some more unique perks.
The Upgrade Cash Rewards Card earn unlimited 1.5% cash back purchases when you make payments.
You may have noticed that rewards are "on payments," and that's because Upgrade does rewards a little differently. The Upgrade Cash Rewards Card doesn't earn rewards when you make a purchase like most rewards credit cards. Instead, it earns rewards when you pay back those purchases. Keep in mind there are no rewards on deposits to your bank account from your card.
The fact that it takes longer to get your rewards is a downside, but these cards still offer competitive rewards rates overall.
See more: Best Cash Back Credit Cards
There are absolutely no fees to use the Upgrade Cash Rewards Card. That means there's:
When you're approved for the Upgrade Cash Rewards Card, you receive a fixed APR. While the variable APRs that credit cards offer can shift depending on interest rate trends, a fixed APR won't. Although your card's APR depends on your creditworthiness, Upgrade offers lower rates than most credit cards.
Learn more: What Is APR and What Does It Mean for Your Credit Cards?
If you're trying to build credit, the Upgrade Cash Rewards Card can work well, because it tends to be easier to get than comparable card products.
All three of its rewards cards are available to consumers with average credit. Many credit cards with similar rewards rates are aimed at consumers who have good credit. An Upgrade Cash Rewards Card is a more accessible option that lets you improve your credit while earning rewards. If you don't qualify for one of those rewards cards, you could be eligible for the standard Upgrade Card without rewards.
It's usually expensive to get cash from a credit card. This type of transaction is a cash advance, which carries an additional fee and a higher interest rate.
With the Upgrade Cash Rewards Card, you can get a personal loan from your credit line directly to your bank account without paying any extra. If you ever need a loan for bills you can't pay by credit card, the Upgrade Cash Rewards Card is a convenient option.
After a billing period ends, Upgrade combines your transactions into one amount due with a fixed monthly payment. The monthly payment is the amount required to pay off your loan by the end of your card's draw length. You're also free to pay more, including the full amount, if you want to pay off your balance more quickly.
For some consumers, having this kind of payment structure can help. Credit cards only require you to make a small minimum payment, but it can take several years to get out of credit card debt when you just pay the minimum. With an Upgrade Card, you have predictable payments and a set end date for them.
Before you fill out an application for an Upgrade Cash Rewards Card, you should learn about a few notable downsides.
Interest starts accruing immediately when you borrow from your Upgrade Cash Rewards Card's credit line. Credit cards, on the other hand, give you an interest-free grace period on every purchase.
If you're the type to pay off your credit card's full statement balance every month, you can avoid interest charges on your purchases. In that case, the Upgrade Card would cost you more money than a traditional credit card, because you're getting charged interest immediately with no way to avoid it.
Learn more: What Is a Credit Card Grace Period?
There's no introductory welcome bonus for opening the Upgrade Cash Rewards Card. Many popular credit cards have lucrative sign-up bonus offers that can be worth $200 or much more. If you're interested in earning rewards, then it's worth reviewing these bonuses, because they can be quite valuable.
Another introductory offer you don't get with the Upgrade Cash Rewards Card is an intro 0% APR. The best intro 0% APR credit cards have an intro rate of 0% on purchases you make, balance transfers from other credit cards, or both.
To its credit, the Upgrade Card offers low, fixed-rate APRs. But before you choose it to save on interest, consider how long you need to pay off purchases you make or a balance transfer. If you could do it within two years, you'll most likely save much more money through a 0% intro APR offer.
For as unique as the Upgrade Cash Rewards Card is, it's also stuck in a middle ground where it falls short of the competition.
It offers rewards like a credit card, but there are top credit cards that offer higher rewards rates and sign-up bonuses. It offers low borrowing costs compared to the typical credit card, but you could potentially pay much less with a 0% intro APR card or one of the best personal loans.
If any of this card's features caught your eye, see if there's another option that could work even better. For example, if you are looking for a quality credit card, make sure to read our other credit card reviews to check what else is out there.
There's no minimum credit score to apply for an Upgrade Cash Rewards Card. A FICO® Score of 580 or higher is recommended for Upgrade's rewards cards, as these are designed for consumers with average to excellent credit.
One of the nice things about Upgrade is that it offers a pre-approval tool for all its cards. You can fill out some basic information to see if you're pre-approved for the Upgrade Card you want before you apply, and it won't have any impact on your credit score.
At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
See Upgrade's disclaimer.
The Motley Fool owns shares of and recommends Visa.
