Upgrade Life Rewards Card Review: 3% Back in Useful Categories
The Bottom Line
4.4
Aside from its solid rewards, this card can also function like a credit card or an installment loan — although in some cases, a traditional personal loan might be a better option for you.
Rates, fees and offers
Annual fee
$0
Rewards rate
1%-3%
Bonus offer
$200 bonus when you also open a Rewards Checking Plus account and make 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
- $200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions
- 3% unlimited cash back on Gas, Groceries, Health, Streaming, and Utilities and unlimited 1% cash back on all other purchases
- No annual fee
- Pay no interest when you pay your full balance early*
- Enjoy Visa Signature benefits, like Roadside Dispatch, Price Protection, Extended Warranty and more
- Up to 10% cash back from your favorite brands with Upgrade Shopping
- No touch payments with contactless technology built in
- See if you qualify in seconds with no impact to your credit score
- Great for everyday expenses and large purchases with predictable payments you can budget for
- 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
Detailed Review
The Upgrade Life Rewards Card — issued by Cross River Bank — is one of several credit card/personal loan hybrid products from the financial technology company Upgrade. With a $0 annual fee and a 3% cash-back rate in categories like gas, groceries, health services, streaming, and utility bills, it's a versatile card that can live up to its name, seriously upgrading the rewards-earning potential of even those with fair or average credit (FICO scores of at least 630).
Still, it won't be ideal for everyone, especially those who dine out frequently. And if you're eyeing the card less for its rewards and more for its installment lending terms, you may be able to find a better offer with a more traditional personal loan.
Here are five things to know about the Upgrade Life Rewards Card.
Upgrade Life Rewards Card: Key features
Card type: Rewards credit card.
Annual fee: $0.
Credit limit: $500 to $25,000.
Sign-up bonus: $200 bonus when you also open a Rewards Checking Plus account and make 3 debit card transactions.
Rewards:
Earn an unlimited 3% cash back on:
Gas and electric vehicle charging stations.
Grocery stores, supermarkets and eligible convenience stores (excluding Target and Walmart).
Streaming and cable services like Comcast, Netflix and AT&T.
Utilities and telecommunication services.
Health services, including gyms, spas, pharmacies, doctor visits and sporting goods stores.
Earn up to 10% cash back on purchases made through Upgrade Shopping, personalized offers located on your account dashboard.
All other purchases earn 1% cash back.
APR: The ongoing APR is 14.99%-29.99%.
Foreign transaction fee: 3%.
Balance transfer fee: 5% of the amount of each transfer.
Other facts and benefits:
Get preapproved without impacting your credit scores.
Pay off balances every month at a fixed interest rate and term or pay no interest when paying off the balance in full.
No penalty APR.
Which Upgrade card is right for you?
Upgrade offers a variety of different hybrid credit cards that offer the credit/personal loan option and varying incentives and features. The right option for you will hinge on your spending habits. Explore which Upgrade card is best for you.
Rewards | |||
Earn up to 10% back on purchases made through Upgrade Shopping. | 1.5% cash back on all purchases. Cash back will be applied to the next month’s balance on your card. Earn up to 10% back on purchases made through Upgrade Shopping. | Earn 3% cash back on home, auto and health purchases. Earn 1% cash back on everything else. Earn up to 10% back on purchases made through Upgrade Shopping. 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. Plus, up to 10% cash back on purchases made through Upgrade Shopping. 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 has the Upgrade OneCard. It has a different rewards structure, but it allows you to pay the balance off in full like a debit card or in fixed monthly payments like a personal loan.
Benefits and Perks
Lucrative bonus offer
Similar to other Upgrade Card products, you can qualify for a bonus: Earn a $200 bonus when you also open a Rewards Checking Plus account and make 3 debit card transactions. (Learn more about the Upgrade Rewards Checking Plus account.) The bonus, which will be applied as a statement credit, is similar in value to what you might get with other rewards credit cards, except you don't have to meet a spending requirement to earn it — although there are other criteria to meet.
Useful cash-back categories
The Upgrade Life Rewards Card offers a healthy, unlimited 3% rewards rate across a wide range of everyday categories like gas, grocery stores, utilities, streaming services and more. If you frequently spend in these categories, rewards will quickly add up in value. It’s also possible to boost rewards further with up to 10% cash back on purchases made through Upgrade Shopping. These are personalized offers that may be found by logging into your account dashboard.
» MORE: Are the Upgrade cards legit?
Flexibility in handling your balance
Like other Upgrade cards, the Upgrade Life Rewards Card has an "Early Pay" feature that will enable you to avoid interest by automatically paying off your statement balance in two days when the statement period ends. This requires a linked checking account.
Also, as with other Upgrade cards, unpaid balances with this one will automatically convert to a fixed-rate loan with a set repayment time frame. However, unlike a traditional credit card with a minimum monthly payment for any carried balance, you will pay equal installments, similar to a personal loan.
Your APR and repayment time frame are based on your creditworthiness and determined when you initially apply for the card.
Preapproval process that shows your offer in advance
Have you ever applied for a credit card just to receive a pitifully low credit line along with a hard pull on your credit report? Upgrade allows you to potentially avoid that situation by allowing you to check what credit line you qualify for before the hard pull is initiated. You will also access your APR and installment loan payback period before agreeing to apply. The hard inquiry is completed once you approve the terms of the offer.
Qualify with fair credit
Before applying for the Upgrade Life Rewards Card, it's recommended that you have at least fair credit (FICO scores of 630 or above). That's welcome news for what has historically been an underserved market.
But a lower credit score will generally translate to a higher APR. If you are diligent in paying off your monthly balance, the Upgrade Life Rewards Card could be a good option for building your credit while earning credit card rewards with little to no fees. But if there's a chance you will carry a balance, you'd be better off with a card featuring a 0% APR offer.
Drawbacks and Considerations
Somewhat limited footprint
Residents of Washington, D.C., Georgia, Iowa, Massachusetts, West Virginia and Wisconsin can't get the Upgrade Life Rewards Card. An alternative to consider is the Blue Cash Everyday® Card from American Express. It offers rewards in similar categories: 3% cash back at U.S. supermarkets (on up to $6,000 spent per year); 3% back at U.S. gas stations (on up to $6,000 spent per year); and 3% cash back on U.S. online retail purchases (on up to $6,000 spent per year). All other purchases earn 1% back. It also has a welcome offer: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Terms Apply. New cardholders may also qualify for an introductory APR: Get a 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-29.24% Variable APR. Terms apply.
A high ongoing APR
The ongoing APR is 14.99%-29.99%, so you won't want to carry a balance on this card. If you think you'll need to do that, and you have at least good credit (FICO scores of 690 or higher), you might qualify for a card like the Wells Fargo Reflect® Card. It offers a 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 17.24%, 23.74%, or 28.99% Variable APR. It also has a $0 annual fee.
Potentially better loan terms elsewhere
When specifically comparing the cost of the personal loan function of the Upgrade Life Rewards Card, you may find better terms elsewhere, depending on your credit history and other factors. A personal loan, for instance, might offer a lower ongoing APR, although you'd also have to calculate the cost of the origination fee and compare both options to determine which saves the most money.
A 0% introductory APR credit card is the most cost-effective if you plan to carry a balance, but this option often won’t allow you to disburse funds in cash to your bank account like the Upgrade Life Rewards Card. If access to cash is a must-have, compare different loan terms to get the best offer.
Limited redemption options
The Upgrade Life Rewards Card earns cash back only as a statement credit, and that credit is automatically applied toward the next month’s balance on the card. Other rewards credit cards give you the option to "bank" your rewards until you're ready to make a big redemption. They may also allow you to redeem for more than just statement credit.
The $0-annual-fee Citi Double Cash® Card, for instance, offers a 2% cash-back rate on all purchases: 1% when you buy, and 1% when you pay it off. You can receive that cash back in the form of a statement credit, but also as a direct deposit to your bank account, a check, gift cards, travel, purchases at Amazon and more. For new cardholders who can meet the spending requirement, the Citi Double Cash® Card can also offer a sign-up bonus: Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Low rewards on dining out
If you frequently spend on dining out or takeout, you won’t earn as many rewards with the Upgrade Life Rewards Card. Depending on your budget, a card like the Capital One Savor Cash Rewards Credit Card might make more sense. It earns 3% cash back on dining, at grocery stores, on entertainment and on popular streaming services. (You'll get 1% cash back on most other purchases.)
How To Decide If It's Right For You
The Upgrade Life Rewards Card lets you collect rewards quickly on everyday purchases and squeeze more value from your planned spending. You’ll have the option to pay off a large balance over time, but keep in mind that the amount of interest charged can chip away at the value of rewards earned. This card is a better fit if you can pay off the balance in full every month to reap big rewards without the interest charges. And, if you must carry a balance and you have good credit, you might do better by exploring personal loan terms or a 0% introductory APR promotion on a different credit card.
If the idea of a credit card that has a built-in personal loan function and a variety of rewards categories overwhelms you, consider a simpler approach. A credit card like the Wells Fargo Active Cash® Card offers 2% cash back on all eligible purchases, no category tracking required. The annual fee is $0.
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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 authors
Melissa Lambarena
Senior Writer & Content StrategistCraig Joseph
Lead Writer
