Upgrade Cash Rewards Review: Charge Like a Credit Card, Pay Off Like a Loan
The Bottom Line
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.
Rates, fees and offers
Rates, fees and offers
Annual fee
$0
Rewards rate
1.5%
Bonus offer
$200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions
Intro APR
N/A
Ongoing APR
APR: 14.99%-29.99%
Balance transfer fee
Up to 5%
Foreign transaction fee
Up to 3%
More details from Upgrade
More details from Upgrade
- $200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions
- 1.5% unlimited cash back on every purchase
- No annual fee
- See if you qualify in seconds with no impact to your credit score
- Combine the flexibility of a card with the predictability of a personal loan
- Enjoy Visa Signature benefits, like Roadside Dispatch, Price Protection, Extended Warranty Protection, and more
- Up to 10% cash back from your favorite brands with Upgrade Shopping
- Contactless payments with Apple Pay® and Google Wallet™
- Mobile app to access your account anytime, anywhere
- Use your card anywhere Visa is accepted
- Relax knowing that you are protected in case of unauthorized transactions with Visa’s Zero Liability Policy
Pros and Cons
Pros
No annual fee
Qualify with average credit
High rewards rate
Reports to the three major credit bureaus
Cons
No bonus offer
Limited availability
Detailed Review
The $0-annual-fee Upgrade Cash Rewards Visa® — issued by Cross River Bank — 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 here's what that means:
You can use the card to make purchases and then pay the bill in full, like you would with a regular credit card. Or, if you carry a balance beyond the due date, you can repay the bill in equal monthly installments over a set period and at a fixed interest rate.
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 purchases. Still, if you have good to excellent credit, you may have any number of 0% intro APR options to choose from if you need to carry a credit card balance.
» MORE: Is the Upgrade Card legit?
Upgrade has a portfolio of several credit cards, including the Upgrade Select Visa® and the Upgrade Triple Cash Rewards Visa®. For information on how Upgrade's multiple cards stack up with each other, see the comparison table below.
Upgrade Cash Rewards Visa®: Basics
Card type: Starter cards, fair credit.
Annual fee: $0.
Credit limit: $500 to $25,000.
Sign-up bonus: $200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions.
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: up to 3%.
Balance transfer fee: up to 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 or penalty APR.
Separate from the regular rewards program, cardholders can earn up to 10% back on purchases made through Upgrade Shopping.
See more from Upgrade
Upgrade Select Visa®:
Credit Lines feature Annual Percentage Rates (APRs) of 14.99% - 29.99% and line amounts ranging from $500 - $25,000 based on creditworthiness. The lowest rates require Autopay and the majority of line amounts will be $15,000 or under. For example, a $1,000 card purchase with a 36 month term and a 19.99% APR has a monthly payment of $37.55. Optional cash transfers to your bank account and balance transfers are subject to a fee of up to 5% of each draw or transfer. Foreign transactions are subject to a fee of up to 3% per transaction. ATM withdrawal fees may apply. If incurred, these fees will increase your finance charge and APR. A late fee of up to $29 per late payment may apply. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors. The Upgrade Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to your approved amount. As you repay your balance, additional credit may become available to you up to an approved amount subject to meeting our credit requirements, but your line will not replenish automatically.
Upgrade Life Rewards Card:
*By paying off your statement balance in full by the EarlyPay payment date, which is two calendar days after your statement closing date, you will avoid daily interest on any new transactions until the following EarlyPay payment date. Refer to your Personal Credit Line Agreement for EarlyPay terms and information. If the balance is not paid in full by the EarlyPay payment date, daily interest will begin to accrue after the Early Pay payment date for past and new transactions. To maintain good standing on your account, you must make at least the required monthly payment by the monthly payment due date, which is 22 calendar days after the statement closing date. You may pay down your full balance at any time to stop further interest charges.
Upgrade Cash Rewards Visa®, Upgrade Triple Cash Rewards Visa®, Upgrade Life Rewards Card:
Credit Lines feature Annual Percentage Rates (APRs) of 14.99% - 29.99% and line amounts ranging from $500 - $25,000 based on creditworthiness. The lowest rates require Autopay and the majority of line amounts will be $15,000 or under. For example, a $1,000 card purchase with a 36 month term and a 19.99% APR has a monthly payment of $37.55. Optional cash transfers to your bank account and balance transfers are subject to a fee of up to 5% of each draw or transfer. Foreign transactions are subject to a fee of up to 3% per transaction. ATM withdrawal fees may apply. If incurred, these fees will increase your finance charge and APR. A late fee of up to $29 per late payment may apply. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors. The Upgrade Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to your approved amount. As you repay your balance, additional credit may become available to you up to an approved amount subject to meeting our credit requirements, but your line will not replenish automatically.
All Upgrade cards:
To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer. Your Upgrade Card and Rewards Checking Plus account must be open and in good standing to receive a bonus. To qualify, debit card transactions must have settled and exclude ATM transactions. Please refer to the applicable Upgrade Visa® Debit Card Agreement and Disclosures for more information. Welcome bonus offers cannot be combined, substituted, or applied retroactively. The bonus will be applied to your Rewards Checking Plus account as a one-time payout credit within 60 days after meeting the conditions. This one-time bonus is available through this Upgrade Card offer and may not be available for other Upgrade Card offers.
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 reward structures and terms may differ. Here's a closer look at the company's most popular cards:
Rewards | |||
None. | 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 other purchases. Cash back will be applied to the next month’s balance on your card. | Earn 3% cash back on a variety of categories, including grocery stores; gas stations; streaming and cable services; utilities and telecom services; and health services. Earn 1% cash back on everything else. Cash back will be applied to the next month’s balance on your card. |
Annual fee | |||
$39. | $0. | $0. | $0. |
Credit limit | |||
$500 to $2,000. | $500 to $25,000. | $500 to $25,000. | $500 to $25,000. |
APR | |||
The ongoing APR is 21.96%-29.99%. | The ongoing APR is 14.99%-29.99%. | The ongoing APR is 14.99%-29.99%. | The ongoing APR is 14.99%-29.99%. |
Upgrade also offers the Upgrade OneCard, which offers a different rewards structure.
Compare to Other Cards
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 on 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 redemption 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 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.
Looking For Something Else?
Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
About the author
Sara Rathner
Senior Writer/Spokesperson
