Imagine knowing exactly how much credit you can get before you even apply. The Upgrade card offers a unique proposition by preapproving you for a substantial credit limit with just a soft credit pull. This means no guesswork and no impact on your credit score until you decide to proceed. In this review, we’ll delve into the features, benefits, and potential drawbacks of the Upgrade card to help you decide if it’s the right fit for you.
Overview of the Upgrade Card
The Upgrade card distinguishes itself by offering a preapproved credit limit, which can go up to $50,000. However, most applicants can expect an initial limit of up to $8,000. This card is designed to provide flexibility, offering both “pay now” and “pay later” options. It also comes with a rewards checking account that can boost your spending power and rewards rate.
Key Features and Benefits
The Upgrade card offers several compelling features that make it stand out in the crowded credit card market. Here are some of the key benefits:
- Preapproved Credit Limit: Know your credit limit before applying, minimizing the impact on your credit score.
- Flexible Payment Options: Choose between “pay now” with no interest or “pay later” with fixed installment payments.
- Rewards Program: Earn 3% cashback on everyday purchases and 2% on all other purchases when you qualify with a rewards checking account.
- No Annual Fee: Enjoy the benefits without the burden of an annual fee.
- Intro Bonus: Earn a $200 welcome bonus when you open a new rewards checking account and make three purchases.
How to Apply for the Upgrade Card
Applying for the Upgrade card is straightforward. Here’s a step-by-step guide:
- Click the link provided on the Upgrade website.
- Fill out the application form, including your personal information and desired credit limit (always choose the maximum allowable amount).
- Provide your annual income, including any additional sources like dividends, retirement income, or side gigs.
- Create an account with your email and password and submit your application.
- Check your rates and finalize your application if you agree with the terms.
Understanding the Rewards Program
To maximize the rewards offered by the Upgrade card, you need to meet specific criteria. Here’s how you can earn the highest cashback rates:
- 3% Cashback: Earn on everyday purchases like convenience stores, drugstores, restaurants, bars, gas stations, and recurring payments on utilities and subscriptions.
- 2% Cashback: Earn on all other purchases.
- Qualifying Account: To earn these elevated rates, you must have a rewards checking account with an average daily balance of $2,500, direct deposits of at least $1,000 per month, or make eight eligible purchases with your rewards checking debit card.
Note that the 3% cashback is capped at $500 in rewards per calendar year. After reaching this limit, you will earn 2% cashback on all purchases.
Pay Now vs. Pay Later: How It Works
The Upgrade card offers a unique “pay now” and “pay later” feature:
- Pay Now: Pay for purchases immediately with no interest, similar to a debit card.
- Pay Later: Split payments into equal installments over a 36-month term at a fixed interest rate.
You can switch between these options up until 12 PM Pacific Time on the day after your purchase settles. This flexibility allows you to manage your finances more effectively, choosing the best payment method for your situation.
Additional Spending Power
By linking your Upgrade card to a rewards checking account, you can gain extra spending power, potentially up to $5,000. To qualify, you must maintain a positive balance and meet the account’s activity requirements. This feature provides additional financial flexibility and enhances your overall spending capacity.
Reporting to Credit Bureaus
The Upgrade card is reported to credit bureaus as an installment account. While it may not impact your credit utilization rate like a traditional credit card, it positively affects your payment history and credit mix. This can be beneficial for those looking to diversify their credit profile and improve their credit score over time.
Who Should Consider the Upgrade Card?
The Upgrade card is ideal for individuals who:
- Want to know their credit limit before applying.
- Prefer flexible payment options with the ability to pay now or later.
- Seek a rewards program with no annual fee.
- Are looking to diversify their credit profile with an installment account.
However, it may not be suitable for those who prefer to accumulate rewards over time, as cashback is automatically applied to the next statement balance.
Overall Recommendation
The Upgrade card offers a unique blend of features that cater to a variety of financial needs. With its preapproved credit limit, flexible payment options, and robust rewards program, it stands out as a versatile financial tool. While it may not be the best fit for everyone, it offers significant benefits for those who meet its criteria and can manage its unique features effectively.
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