Venmo Credit Card Review: Up to 4% Back, If You Split the Tab

Solid rewards for heavy Venmo users

As you might expect, the Venmo Credit Card incentivizes the use of its namesake app, earning 3% cash back when you pay with Venmo. You'll also earn up to 4% back on eligible dining and entertainment when you split those transactions and get paid back in the app. Otherwise, you still earn a 3% rate in those categories.

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Wide range of redemption options

Any cash back you earn will appear in your Venmo balance after your statement closes. Once earned, you can apply the money toward a credit card bill (much like a statement credit), make purchases from a merchant that accepts Venmo, send money to someone else through the Venmo app, or transfer it to a linked bank account or debit card.

Cash back may also be used to buy certain cryptocurrencies through the Cash Back to Crypto redemption option. If you opt-in to the auto-purchase feature, any cash back in your account will automatically be used to purchase the cryptocurrency of your choice — without incurring a crypto transaction fee.

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Unique card design that makes splitting costs simple

Each physical card features its own QR code on the front, which comes in handy when you’re splitting a purchase with another person. They can scan the QR code from the Venmo app and be brought to your Venmo profile. From there, they can send money, or request money from you. Keep in mind that paying a friend over Venmo using the Venmo Credit Card means you’ll pay a 3% fee, which is the same as using any other credit card for peer-to-peer transactions.

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Gettable with fair credit

Many top rewards credit cards require at least good credit, meaning FICO scores from the mid-600s or upward. But the Venmo Credit Card is attainable with only fair credit, which typically corresponds to FICO scores from the mid-500s to low 600s. That's a relatively under-served market for credit cards, especially ones that earn decent rewards.

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Instant access upon approval

While your physical card is in the mail, you can begin making purchases with the virtual version of the card, which lives within the Venmo app and can also be added to digital wallets. Once the physical card arrives, you can activate it by scanning the QR code.

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Manage the card via the Venmo app

Best rewards have strings attached

Yes, the card earns up to 4% back on dining and entertainment, an excellent rate for a no-annual-fee card. But getting the full 4% is contingent on splitting each eligible transaction within the Venmo app. You must also be paid by your fellow Venmo users for the transaction within 30 days of purchase. Meeting both of those requirements nets you an additional 1% on top of the base 3% dining and entertainment rewards rate.

Surely you’re not going to split every restaurant bill or movie ticket purchase, meaning that some (most?) of your purchases will earn 3% rather than 4% back. And the idea of your rewards-earning potential being contingent on another’s ability to pay you back is sure to turn off some consumers.

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Welcome bonus is a moving target

The Venmo Credit Card currently offers bonuses on a limited-time basis. So if you want the bonus, you'll have to time your application carefully. Other cards consistently sweeten the deal with welcome offers worth $150 or more, which can help offset the annual fee some of them charge. One example is the Blue Cash Preferred® Card from American Express, which offers this welcome bonus: You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply. The card also earns generous cash-back rates in several common spending categories. It charges a $0 intro annual fee for the first year, then $95.

You must use it with the Venmo app

There’s no Venmo Credit Card without the Venmo app. All aspects of card management — paying balances, redeeming rewards, changing notifications, setting up autopay and locking the card — must occur within the app. There’s no separate website to log into on a desktop, for example.