Upgrade Cash Rewards Card Review: Charge Like a Credit Card, Pay Off Like a Loan
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4.7
This hybrid credit card/personal loan product expands your options and offers a lot of flexibility. But if you have at least fair credit, you might qualify for cards with more benefits or loans with better terms.
Pros
No annual fee
Qualify with average credit
High rewards rate
Reports to the three major credit bureaus
Cons
No bonus offer
Limited availability

on Upgrade's website
Compare to Other Cards
Annual fee$0 | Annual fee$0 |
Intro APRN/A | Intro APR10.99% intro APR on Balance Transfers for 6 months |
Recommended Credit Score |
Recommended Credit Score |
Detailed review: Upgrade Cash Rewards Visa®
The $0-annual-fee Upgrade Cash Rewards Visa® is a unique product for people with lower credit scores, or for anyone who needs to finance a large purchase. It advertises "the flexibility of a credit card with the low cost and predictability of a personal loan," and indeed it can be used in those two ways:
As a credit card: Use it to make purchases, which are converted to installment loans at a fixed interest rate. If you carry a balance beyond the due date, you can repay it in equal monthly installments over a set period.
As a personal loan: Tap into your credit limit and 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. (You cannot use the card at an ATM to withdraw cash, however.) Personal loans are made by Upgrade's lending partners.
That's a good bit different from how most credit cards work, and it could make monthly budgeting a lot easier. The Upgrade Cash Rewards Visa® also earns a solid 1.5% cash back on all purchases. Still, if you have good to excellent credit, you may have a number of 0% intro APR options to choose from if you need to carry a credit card balance.
Upgrade has a portfolio of several credit cards, including the Upgrade Triple Cash Rewards Visa®. For information on how Upgrade's multiple cards stack up with each other, see the comparison table below.
» MORE: Is the Upgrade Card legit?
Upgrade Cash Rewards Visa®: Basics
Card type: Starter cards, fair credit.
Annual fee: $0.
Credit limit: $500 to $25,000.
Sign-up bonus: None.
Rewards: 1.5% cash back on all purchases. (Cash back will be applied to the next month’s balance on your card.)
APR: The ongoing APR is 14.99%-29.99%.
Foreign transaction fee: 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.
No prepayment penalty, late fees or penalty APR.
Activity on the Upgrade Cash Rewards Visa® is reported to bureaus as a line of credit, but without a total credit line limit. Upgrade does report a balance and fixed payments, but since the total credit limit is not reported, credit utilization is not affected.
Which Upgrade Card is right for you?
Upgrade offers several different cards, and while they all offer the same unique "credit card/personal loan" hybrid feature, their rewards structures differ. Here's a closer look:
Upgrade Cash Rewards Visa® | Upgrade Triple Cash Rewards Visa® |
---|---|
1.5% cash back on all purchases. Cash back will be applied to the next month’s balance on your card. | Earn 3% cash back on home, auto and health purchases. Earn 1% cash back on everything else. Cash back will be applied to the next month’s balance on your card. |
Annual fee | |
$0. | $0. |
Credit limit | |
$500 to $25,000. | $500 to $25,000. |
APR | |
The ongoing APR is 14.99%-29.99%. | The ongoing APR is 14.99%-29.99%. |
Benefits and perks
It's available to those with FICO scores of 600 and up
Applicants with FICO credit scores of 600 or above can qualify for the Upgrade Cash Rewards Visa®, and unlike a lot of other cards available to those with less-than-stellar credit, there's no security deposit or annual fee. Because on-time payments are reported to the three major credit bureaus, the card can help you build your credit scores over time with responsible use.
It earns cash-back rewards
The Upgrade Cash Rewards Visa® unveiled a cash-back rewards program in October 2020. You'll earn 1.5% cash back on all purchases, and earnings will be applied to the next month’s balance on your card, almost like a prepayment on your bill. This redemption process may not be ideal for everyone (more on that below). But still, it's uncommon for an unsecured card geared toward those with fair credit to offer rewards and charge a $0 annual fee.
Fixed monthly payments make budgeting easier
Revolving balances on typical credit cards have no set deadline to be paid off in full, and the amount you owe can change — and balloon — over time thanks to variable interest. The Upgrade Cash Rewards Visa® treats your debt like a personal loan. You're charged a fixed interest rate on that balance, but you can prepay it at any time with no penalty. Monthly payments can be debited directly from any bank account, and you have 24, 36 or 60 months (depending on what you're approved for) to pay it off in equal monthly installments.
While the terms on your existing balances won't change, Upgrade notes that they might be adjusted for future draws, depending on things like changes to your credit scores, market conditions and overall interest rate hikes.
It offers other hard-to-find features
Aside from its low cost to carry, the Upgrade Cash Rewards Visa® also allows you to see what credit line you’d qualify for without initiating a hard pull on your credit report. Such hard pulls can temporarily ding your credit scores, which isn't ideal for those with low scores to begin with. A hard inquiry is completed only once you agree to the terms. This feature is rare among credit cards, although the Apple Card is a well-known product that has a similar pre-approval process.
Drawbacks and considerations
Other loan options may still offer better terms
Depending on your financial situation, a personal loan or other credit card may make the cost of borrowing money significantly less expensive. The interest rate you’re approved for by the Upgrade Cash Rewards Visa® can be quite low if you qualify for its best rates, but also quite high if you do not. And as noted above, different transactions on the card may be subject to different APRs depending on multiple factors.
» MORE: Where to get a personal loan
It lacks some benefits of more traditional credit cards
If you’re looking for a sign-up bonus or a 0% intro APR period on balance transfers or new purchases, look elsewhere. The Upgrade Cash Rewards Visa® doesn't offer these things. Instead, you might want to look into other products.
If you have good to excellent credit, you might qualify for the Capital One Quicksilver Cash Rewards Credit Card. It, too, earns 1.5% cash back on most purchases and the annual fee is $0. New cardholders get an introductory APR offer and can earn a nice sign-up bonus.
You can't 'bank' your rewards
Because the cash back you earn with the Upgrade Cash Rewards Visa® is automatically applied toward your next month's balance, it means you can't save up your cash back for a big purchase later.
That's different from how most rewards credit cards work. If you'd rather get a more traditional credit card, browse NerdWallet's best credit cards to see more options.
How to decide if it's right for you
If you plan to carry a balance, want the convenience of equal monthly debt repayments and pre-qualify for a favorable interest rate, the Upgrade Cash Rewards Visa® is a legit and compelling choice. But consumers with good to excellent credit have more borrowing options, including low-interest personal loans and credit cards with 0% intro APR periods for new purchases and balance transfers.
on Upgrade's website