Upgrade Bitcoin Rewards Card Review: Crypto With a Few Caveats

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The Upgrade Bitcoin Rewards Visa® Credit Card is one of multiple cards offered by the financial startup Upgrade and issued by Sutton Bank. It works like a credit card and personal loan all in one, allowing you to make purchases and then pay down your balance in equal monthly installments for a set period of time with a fixed interest rate.

But that's not its only distinctive trait: The card also earns 1.5% back in the form of bitcoin when you make your monthly payments, another product among a growing trend of credit cards that offer cryptocurrency rewards.

There are some limits on those bitcoin-based rewards, though, and a 1.5% rewards rate itself isn't spectacular. But the key with crypto isn't necessarily the upfront earn rate, but rather the potential appreciation of those rewards later.

Of course, it's worth noting that crypto values can also fall, but for anyone looking to dip their toes into bitcoin, the Upgrade Bitcoin Rewards Visa® Credit Card is a low-barrier way — especially when the risk is limited to credit card rewards and not, say, money sitting in your traditional bank account.

» MORE: Is the Upgrade Card legit?

Upgrade Bitcoin Rewards Visa® Credit Card: The basics

Card type: Rewards, cryptocurrency.

Annual fee: $0.

Sign-up bonus: None.

Ongoing rewards: Earn 1.5% unlimited cash back in bitcoin when you make payments.

APR: The ongoing APR is 14.99%-29.99%.

Foreign transaction fees: 3%.

Balance transfer fee: 5%.

Other facts and benefits:

• No security deposit required.

• Get pre-approved without hurting your credit scores.

• Pay down balances at a fixed interest rate with equal monthly payments.

• Use your credit line as a personal loan by requesting funds be sent directly to your bank account.

• No prepayment penalty, late fees or penalty APR.

• Reports to all three major credit bureaus.

How the Upgrade Bitcoin Rewards Visa® Credit Card works

You can use the Upgrade Bitcoin Rewards Visa® Credit Card in two ways:

• As a credit card: Make purchases in stores or online, wherever Visa cards are accepted. Your balance is converted to an installment loan at a fixed interest rate, which you can repay in equal monthly payments over a set period.

• As a personal loan: Request that funds be sent directly to your bank account. You can pay back the loan in equal monthly installments over a set period with a fixed interest rate and a 5% cash advance fee. Note that you cannot get a cash advance at an ATM using this card.

You earn 1.5% back in bitcoin rewards as you make payments on your card balance. Earned bitcoin rewards are held in a wallet provided by NYDIG, a custody and trading platform.

The ongoing APR is 14.99%-29.99%, and most applicants can qualify for credit lines ranging from $500 to $25,000 (though some may be granted credit lines as high at $50,000).

Which Upgrade card is right for you?

The Upgrade Bitcoin Rewards Visa® Credit Card is one of a collection of cards offered by the financial startup Upgrade and issued by Sutton Bank. Other cards include the Upgrade Cash Rewards Visa® and Upgrade Triple Cash Rewards Visa®, which earn cash-back rewards. All three cards are available to applicants with average to excellent credit, while applicants who are working to improve their credit may qualify for a version of the card that doesn’t offer rewards.

The key difference among the cards is their rewards structure. Here's how they stack up:

Available to applicants with average credit

If you have fair credit, you simply don’t have as many rewards credit card options as those with good or excellent credit do. And other cards offering crypto rewards — like the SoFi Credit Card — require at least good credit to qualify. That makes the Upgrade Bitcoin Rewards Visa® Credit Card a compelling alternative for applicants who are interested in earning crypto rewards while they build their credit history, especially since on-time payments are reported to the three main credit bureaus.

Bitcoin rewards

Bitcoin is considered to be one of the first cryptocurrencies, and it’s the most popular one. The Upgrade Bitcoin Rewards Visa® Credit Card offers a way to buy bitcoin a little bit at a time without spending additional money to do so. This is helpful for anyone who wants to allocate credit card rewards toward testing the bitcoin waters.

» MORE: Bitcoin, explained for beginners

Predictable monthly payments

With more traditional revolving credit cards, you must make at least a minimum payment each month, but the total amount you owe can vary significantly depending on how much debt you have and what additional charges you made to the card. That can make it difficult to budget for credit card payments. The Upgrade Bitcoin Rewards Visa® Credit Card converts an unpaid balance into a personal loan, with a fixed interest rate and fixed monthly payments over a set period of time. You can prepay any amount any time with no penalty.

Additional unique features

When applying for the Upgrade Bitcoin Rewards Visa® Credit Card, you can find out what terms you’d qualify for without a hard credit pull. Hard pulls can temporarily ding your credit scores — not helpful for anyone who’s trying to build their credit. A hard inquiry is completed only once you agree to the terms. This isn’t a common feature, though there are other credit cards that offer a pre-qualification process without the hard credit inquiry.

Notable limitations on bitcoin rewards

You can’t move your earned bitcoin rewards to a different wallet, and once you sell, you’re subject to a 1.5% transaction fee. Sale proceeds are applied as a statement credit. Also note that selling bitcoin earned on rewards cards like these could result in capital gains taxes.

Potentially high interest rate

Depending on your financial situation, you may qualify for an interest rate on the high end of the possible APR range. If you have good or excellent credit, a card with an introductory 0% intro APR offer could be a better bet for financing a large purchase. The Wells Fargo Reflect® Card offers 0% intro APR on Purchases for 21 months from account opening and 0% intro APR on Balance Transfers for 21 months from account opening on qualifying balance transfers, and then the ongoing APR of 17.99%-29.99% Variable APR. A personal loan could also be an option if you qualify for more favorable terms than the Upgrade Bitcoin Rewards Visa® Credit Card offers.

No sign-up bonus

If you plan to make a large purchase or carry credit card debt and want the ease and convenience of equal monthly payments at a fixed interest rate, the Upgrade Bitcoin Rewards Visa® Credit Card offers that with a side of oh-so-trendy bitcoin rewards. Other crypto cards have fewer limitations, however. And if bitcoin isn’t your main concern, you may qualify for a card with a generous sign-up bonus or 0% APR period instead.