Microsoft, in collaboration with Barclays, has launched the new Xbox Mastercard. This card initially rolled out in September 2023 to Xbox Insiders and is now available to the broader market. While it may appeal to dedicated Xbox gamers, there are some features that might be seen as underwhelming or even slightly insulting to the target audience.
This review delves into the card’s features, rewards structure, and overall value, providing a detailed analysis to help you decide if this card is right for you.
Key Features of the Xbox Mastercard
One of the primary selling points of the Xbox Mastercard is its lack of an annual fee. This makes it an attractive option for those who don’t want to pay for the privilege of carrying a credit card. Let’s break down the specific rewards and benefits:
- Five points per dollar on Microsoft Store purchases
- Three points per dollar on most streaming services
- Three points per dollar on food delivery services
- One point per dollar on all other purchases
New cardholders will receive a 5,000-point bonus after their first purchase, equivalent to a $50 value. This suggests that each point is worth one cent when redeemed, maintaining the same value across all reward categories.
Redemption Options
The points earned with the Xbox Mastercard can be redeemed for various items within the Xbox and Microsoft ecosystem. This includes:
- Consoles
- Games
- In-game purchases
- Xbox gift cards
All redemptions maintain the one cent per point valuation, ensuring consistency in rewards value.
Additional Perks and Concerns
Cardholders who are not already Xbox Game Pass subscribers can get three months free of Xbox Game Pass Ultimate. However, after this period, they will be automatically charged $16.99 per month. Similarly, a three-month free Spotify Premium subscription is offered, with automatic billing starting afterward.
These perks are standard promotional tactics used by many companies, offering free trials with the hope that customers will continue paying after the trial period ends. However, the most concerning aspect is the bonus for spending $7,000 in the first 12 months. Instead of a direct reward, cardholders receive two codes to give others three months of Game Pass Ultimate, which then automatically bills them.
Interest Rates and Card Design
The Xbox Mastercard’s interest rates range from 20.99% to 26.99%, which is high but not uncommon for retail credit cards. It’s crucial to pay off your balance in full each month to avoid these hefty interest charges.
On a lighter note, the card offers multiple designs and the option to print your gamer tag on the card, adding a personal touch for dedicated gamers.
Is the Xbox Mastercard Right for You?
Ultimately, the Xbox Mastercard may be suitable for younger gamers or those looking for their first credit card. However, it doesn’t appear to be easier to obtain than other cards on the market. If you’re considering a credit card, it’s wise to explore other options that offer better rewards and bonuses.
There are many no-annual-fee cards that provide $200 to $300 bonuses for spending as little as $500 in the first few months. Additionally, other cards with small annual fees can offer $600 or more in bonuses for similar spending targets.
The Xbox Mastercard seems to target individuals who might not compare other credit cards and could be drawn in by Microsoft’s branding and the allure of gaming-related rewards.
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