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Upgrade Card Review: A Rewards Card-Loan Hybrid With No Fees

Review Updated
Lyle Daly
Author: Lyle Daly
Lyle Daly
Lyle Daly
Writer

Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. His work with Motley Fool Money and The Motley Fool has appeared syndicated in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

The Upgrade Card is a truly one-of-a-kind card product. You can use it to make purchases like you would with a credit card, but they're technically loans with fixed payments. Unlike a traditional credit card, an Upgrade Card also lets you borrow cash for no additional fees. Read our in-depth Upgrade Card review to see if you should apply for one.

Ratings Methodology

Upgrade Cash Rewards Card

Upgrade Cash Rewards Card
Rating image, 3.00 out of 5 stars.
3.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.00 out of 5 stars.
3.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair (300-669)
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Fair (300-669)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

14.99% - 29.99%, variable

Rewards

1.5% cash back

Annual Fee

$0

Welcome Offer

N/A

  • A card with a unique approach in that it technically offers a loan product with fixed payments, plus cash rewards.See Upgrade's disclaimer for important details.

    • Rewards
    • No fees
    • Fixed APR
    • Lenient approval requirements
    • Immediate interest charges
    • No sign-up bonus
    • No 0% intro APR offer
    • Doesn't excel compared to other financial products
    • Earn 1.5% unlimited cash back on card purchases every time you make a payment
    • Combine the flexibility of a card with the low cost and predictability of a loan
    • $0 fees – $0 annual fee, $0 activation fees, $0 maintenance fees
    • No touch payments with contactless technology built in
    • See if you qualify in minutes without hurting your credit score
    • Access to a virtual card while you wait for your card to arrive in the mail
    • Great for large purchases with predictable payments you can budget for
    • Mobile app to access your account anytime, anywhere
    • Enjoy peace of mind with $0 Fraud liability
Personal Credit Lines are issued by Cross River Bank, Member FDIC. The Upgrade Cash Rewards Card is issued by Cross River Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Upgrade is a financial technology company, not a bank.

Credit card comparison

We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.

Offer Our Rating Welcome Offer Rewards Program APR Learn More
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash back on rotating categories 		Discover will match all the cash back you’ve earned at the end of your first year. 1% - 5% Cashback Circle with letter I in it. Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.

Intro:

Purchases: 0%, 15 months

Balance Transfers: 0%, 15 months

Regular: 18.24% - 27.24% Variable APR

Apply Now for Discover it® Cash Back

On Discover's Secure Website.

Rates & Fees External Link Icon

Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for cash rewards on everyday spending 		$200 cash rewards Circle with letter I in it. Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. 2% cash rewards Circle with letter I in it. Earn unlimited 2% cash rewards on purchases.

Intro: Circle with letter I in it. 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers

Purchases: 0% intro APR, 12 months from account opening

Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers

Regular: XX.XX%, XX.XX%, or XX.XX% Variable APR

Apply Now for Wells Fargo Active Cash® Card

On Wells Fargo's Secure Website.

Rates & Fees External Link Icon

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Best for unlimited rewards on purchases 		25,000 points Circle with letter I in it. 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases 1.5 points per dollar Circle with letter I in it. Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees, and your points don't expire as long as your account remains open.

Intro: Circle with letter I in it. 0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 18.24% - 28.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.

Purchases: 0% Intro APR for 15 billing cycles for purchases

Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days

Regular: 18.24% - 28.24% (Variable)

Apply Now for Bank of America® Travel Rewards credit card

On Bank of America's Secure Website.

Full Upgrade Card review

This card is a good fit for: Consumers who want a card they can use for purchases and loans. Those who have had credit card debt may also prefer this card's fixed payment structure.

How the Upgrade Cash Rewards Card works

The Upgrade Card gives you access to a series of loans. It's technically not a credit card, although it does have some similarities to credit cards as well as other financial products.

When you're approved for an Upgrade Cash Rewards Card, you receive a credit limit, a fixed APR, and a draw length. Here's how each of these work:

  • Credit limit: The maximum amount you can borrow using your Upgrade Cash Rewards Card.
  • Fixed APR: The interest rate you pay. While most credit cards have a variable APR that can change over time, a fixed APR doesn't change.
  • Draw length: The amount of time you have to pay back money you borrow. Since you have a set period of time to pay off your balance, this is more like repaying a loan than a credit card.

Transactions made with the Upgrade Cash Rewards Card are called draws, and there are two ways to draw money with it:

  • Use your card to pay for purchases anywhere Visa is accepted.
  • Get a direct deposit to your bank account from your credit limit.

Unlike credit cards that offer a grace period before purchases have any interest charges, all spending with an Upgrade Cash Rewards Card starts accruing interest immediately.

After each billing period, transactions are combined into one balance. Based on that balance, Upgrade provides a fixed payment amount. That's the amount required to pay off the balance by the end of the draw length. If you want, you can pay more than the payment amount, including paying off the full balance at once.

Learn more: Best Visa Credit Cards

Top perks

The Upgrade Cash Rewards Card provides a mix of popular credit card benefits and some more unique perks.

1.5% cash back

The Upgrade Cash Rewards Card earn unlimited 1.5% cash back purchases when you make payments.

You may have noticed that rewards are "on payments," and that's because Upgrade does rewards a little differently. The Upgrade Cash Rewards Card doesn't earn rewards when you make a purchase like most rewards credit cards. Instead, it earns rewards when you pay back those purchases. Keep in mind there are no rewards on deposits to your bank account from your card.

The fact that it takes longer to get your rewards is a downside, but these cards still offer competitive rewards rates overall.

See more: Best Cash Back Credit Cards

No fees

There are absolutely no fees to use the Upgrade Cash Rewards Card. That means there's:

  • No annual fee
  • No fees to draw money, either for purchases or bank account deposits
  • No foreign transaction fee
  • No prepayment penalty

Fixed APR

When you're approved for the Upgrade Cash Rewards Card, you receive a fixed APR. While the variable APRs that credit cards offer can shift depending on interest rate trends, a fixed APR won't. Although your card's APR depends on your creditworthiness, Upgrade offers lower rates than most credit cards.

Learn more: What Is APR and What Does It Mean for Your Credit Cards?

Lenient approval requirements

If you're trying to build credit, the Upgrade Cash Rewards Card can work well, because it tends to be easier to get than comparable card products.

All three of its rewards cards are available to consumers with average credit. Many credit cards with similar rewards rates are aimed at consumers who have good credit. An Upgrade Cash Rewards Card is a more accessible option that lets you improve your credit while earning rewards. If you don't qualify for one of those rewards cards, you could be eligible for the standard Upgrade Card without rewards.

Send money to your bank account

It's usually expensive to get cash from a credit card. This type of transaction is a cash advance, which carries an additional fee and a higher interest rate.

With the Upgrade Cash Rewards Card, you can get a personal loan from your credit line directly to your bank account without paying any extra. If you ever need a loan for bills you can't pay by credit card, the Upgrade Cash Rewards Card is a convenient option.

Fixed payments

After a billing period ends, Upgrade combines your transactions into one amount due with a fixed monthly payment. The monthly payment is the amount required to pay off your loan by the end of your card's draw length. You're also free to pay more, including the full amount, if you want to pay off your balance more quickly.

For some consumers, having this kind of payment structure can help. Credit cards only require you to make a small minimum payment, but it can take several years to get out of credit card debt when you just pay the minimum. With an Upgrade Card, you have predictable payments and a set end date for them.

What could be improved

Before you fill out an application for an Upgrade Cash Rewards Card, you should learn about a few notable downsides.

Immediate interest charges

Interest starts accruing immediately when you borrow from your Upgrade Cash Rewards Card's credit line. Credit cards, on the other hand, give you an interest-free grace period on every purchase.

If you're the type to pay off your credit card's full statement balance every month, you can avoid interest charges on your purchases. In that case, the Upgrade Card would cost you more money than a traditional credit card, because you're getting charged interest immediately with no way to avoid it.

Learn more: What Is a Credit Card Grace Period?

No sign-up bonus

There's no introductory welcome bonus for opening the Upgrade Cash Rewards Card. Many popular credit cards have lucrative sign-up bonus offers that can be worth $200 or much more. If you're interested in earning rewards, then it's worth reviewing these bonuses, because they can be quite valuable.

No 0% intro APR offer

Another introductory offer you don't get with the Upgrade Cash Rewards Card is an intro 0% APR. The best intro 0% APR credit cards have an intro rate of 0% on purchases you make, balance transfers from other credit cards, or both.

To its credit, the Upgrade Card offers low, fixed-rate APRs. But before you choose it to save on interest, consider how long you need to pay off purchases you make or a balance transfer. If you could do it within two years, you'll most likely save much more money through a 0% intro APR offer.

Doesn't excel compared to other financial products

For as unique as the Upgrade Cash Rewards Card is, it's also stuck in a middle ground where it falls short of the competition.

It offers rewards like a credit card, but there are top credit cards that offer higher rewards rates and sign-up bonuses. It offers low borrowing costs compared to the typical credit card, but you could potentially pay much less with a 0% intro APR card or one of the best personal loans.

If any of this card's features caught your eye, see if there's another option that could work even better. For example, if you are looking for a quality credit card, make sure to read our other credit card reviews to check what else is out there.

Suggested credit score

There's no minimum credit score to apply for an Upgrade Cash Rewards Card. A FICO® Score of 580 or higher is recommended for Upgrade's rewards cards, as these are designed for consumers with average to excellent credit.

One of the nice things about Upgrade is that it offers a pre-approval tool for all its cards. You can fill out some basic information to see if you're pre-approved for the Upgrade Card you want before you apply, and it won't have any impact on your credit score.

The Upgrade Card is right for you if:

  • You want easy access to loans for emergencies. You can take a personal loan from your Upgrade Card to your bank account whenever you need it.
  • You're working on your credit score. You can qualify for an Upgrade Card with a low credit score, and unlike many credit cards for bad credit, it doesn't have any fees.
  • You've had trouble paying off your credit cards before. Since the Upgrade Card gives you a fixed payment structure, it could keep you from getting stuck in credit card debt.

Our credit card methodology

At Motley Fool Money, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how Motley Fool Money rates credit cards.