Rewards-savvy spenders who want to wield one of the highest flat cash back rates available should consider the Upgrade Cash Rewards Elite card. Plus, its incredibly low rates and fees, quality welcome offer and unique loan-style payments may suit a variety of spending habits — especially if you sometimes need breathing room to handle unexpected expenses.
Rewards: One of the best flat cash back rates
The Upgrade Cash Rewards Elite card earns an impressive, unlimited 2.2 percent flat cash back rate. This is one of the highest flat rates around, beating out many of the best flat-rate cash back cards on the market. Many popular cards only offer 1.5 percent cash back, and only a few earn up to 2 percent cash back.
The Upgrade Elite card’s rewards make it a solid choice as both a standalone cash back card and a supplementary card to combine with cards that earn rewards at a higher rate in specific spending categories.
However, unlike most cash back cards, the Upgrade Elite card doesn’t earn the rewards until you make a payment. What’s more, you only have two ways to receive cash back:
- After your monthly payment: Automatically added toward your card balance as a statement credit the following month, or within 90 days
- After you pay off your balance in full: Added as a direct deposit to your bank account on file with Upgrade
The second option is best since any interest payments from carrying a balance would outweigh the rewards you’d earn. Either a direct deposit or statement credit is a fine cash back option, but competing cards offer much more flexible redemption choices.
Many of the best cash back credit cards give you a variety of redemption options, including direct deposits to your linked bank account, checks, gift cards or even travel. Some cards can be even more versatile, allowing you to maximize your rewards by pooling points with premium travel cards with the same issuer.
APR: Loan-style payments can limit rising interest rates
Upgrade’s unique loan-style payment structure can be a big help for managing debt if you might occasionally need extra time to pay off unexpected purchases. This is especially handy since interest rates have been climbing.
For example, locking in the card’s lowest APR for an installment plan may curb the interest you’d owe compared to competing cards’ high APRs on a revolving balance. Keep in mind that the Cash Rewards Elite card’s APR is still variable, so your rate may be higher on future installment plans.
However, you should avoid carrying a balance whenever possible because the interest you’ll owe more than outweighs any rewards you’d earn — which defeats the purpose of choosing the Cash Rewards Elite for its cash back rate. And, although this card advertises its payment approach as a personal loan-like alternative to risky debt from a traditional credit card, you still might want to consider a personal loan for major expenses. Yes, the Cash Rewards Elite could provide a lower APR than the current average credit card interest rate, but it may be much higher than the average personal loan rate.
This Upgrade card still has its place, though, since its marginally higher rate might be worth it to avoid the hassle of dealing with a risky payday loan or a short-term personal bank loan.
Welcome offer: A solid bonus with ongoing value
As a new Upgrade Cash Rewards Elite cardholder, you can earn a $200 bonus after you sign up for an Upgrade Rewards Checking Plus account and make three debit card transactions within 60 days.
If you’re happy with your current bank, this offer may not sound all that appealing. But if you’re considering opening a new checking account, Upgrade Rewards Checking Plus is worth a look. It isn’t like traditional checking accounts and comes with some interesting features. For example, the Upgrade checking account earns cash back on debit card purchases, including 2 percent back on everyday expenses like gas, restaurants, monthly subscriptions and utilities. Since it’s not always possible to pay certain utilities with a credit card, this is a handy feature that can earn extra rewards. Upgrade also states it will provide an up to 20 percent lower rate on Upgrade loans and cards as long as you maintain an active rewards checking account.
The Upgrade Cash Rewards Elite card is one of the only flat-rate cash back cards that offers at least 2 percent cash back and also comes with a welcome bonus. Plus, its welcome offer is on par with the $200 sign-up bonus no-annual-fee cash back cards usually provide, except the spending requirement could be much lower than the typical $500 to $1,000 benchmark. Ultimately, this is a solid welcome offer if you don’t mind the extra legwork involved with maintaining a rewards checking account.
Rates and fees: Fewer potential costs than many rival cards
Like other neobank credit cards, the Upgrade Cash Rewards Elite charges far fewer fees than many major rewards cards. On top of the potentially low ongoing APR, there is no annual fee, late payment fee or penalty APR to worry about. These are potential card costs that traditional credit cards usually carry, and even famously low-cost cards like the Discover it® Cash Back card charge an up to a $41 fee after the first late payment.
However, there’s an up to 3 percent foreign transaction fee and an up to 5 percent balance transfer fee. These are common rates, but you may want to consider one of the many competing cards with no foreign transaction fees if you often travel abroad. Getting an advance loan on part of your credit line will also come with APR payments and a 5 percent cash advance fee.
Overall, the Upgrade Cash Rewards Elite could be easy to justify since there isn’t an annual fee to offset and it has remarkably fewer potential costs than many traditional cards pose. Although some other neobank rewards cards may waive even more rates and fees, this Upgrade card is exceptionally easier to use since other neobank cards often require juggling additional accounts or impose stiff transaction limits.