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Upgrade Cards: Which One Should You Get in 2025?
December 12, 2024
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Understanding Upgrade Cards – How They Work & What’s Common
Upgrade’s credit cards are a unique hybrid of a credit card and a personal loan. They work like credit cards at purchase – you can swipe or tap them anywhere Visa is accepted – but they repay like installment loans. In fact, any balance you carry is converted into a fixed-term installment plan with a set monthly payment and interest rate, rather than revolving indefinitely. This means there’s no traditional interest-free grace period beyond the statement due date – if you carry a balance, interest accrues as per the fixed plan.
On the upside, you won’t get stuck making just minimum payments for years; you’ll have a clear payoff date (usually 2–5 years). All Upgrade cards share this structure. They also have no annual fees, and their credit lines range roughly from $500 up to $25,000 depending on your creditworthiness (except one product, noted below, which tops out at $2,000).
Importantly, all Upgrade cards require at least “fair” credit (around a 630 FICO or higher) to qualify. If approved, each card will report your on-time payments to credit bureaus to help build your credit, though they don’t report a revolving credit utilization like typical cards (because your balance is a series of installment loans). Also common across the lineup is a foreign transaction fee – up to 3% on purchases outside the U.S. – and the inability to do cash advances. None of the Upgrade cards allow cash advances at ATMs, and all charge a fee (up to 5%) if you try to transfer in a balance from another card.
How about rewards? All but one of the Upgrade cards earn cash back rewards, but there’s a twist: with the regular Upgrade cards, you earn rewards as you repay your balance, not at the moment of purchase. (Two particular cards – the Upgrade OneCard and Upgrade Life Rewards Card – offer an option to earn immediately on purchases you pay off right away, effectively treating those like debit transactions.)
In practice, for the standard Upgrade cards your cash back will be credited to your next month’s balance automatically. There’s no points system or manual redemption to worry about – it simply reduces what you owe. All cards currently also share the same sign-up bonus offer. Now, let’s look at what makes each Upgrade card different so you can pick the right one.
Comparing Upgrade Card Options – Key Differences
Upgrade (the company) offers five card versions: four are rewards cards and one is a basic card without ongoing rewards. Here’s a breakdown:
Rewards Programs: Flat Rate vs. Tiered Categories
Upgrade Cash Rewards Visa® – This is the simplest of the bunch. It earns unlimited 1.5% cash back on every purchase, with no categories to track. If you prefer straightforward rewards, this flat-rate card is the most hassle-free – every $100 you spend yields $1.50 back. The Cash Rewards Visa has no annual fee and standard Upgrade terms. This card is ideal if you don’t have one particular spending category that dominates your budget or you simply don’t want to juggle bonus categories.
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Upgrade Triple Cash Rewards Visa® – True to its name, this card gives 3% cash back in specific categories. The bonus categories are focused on common big-ticket expenses: home, auto, and health. For example, you’ll earn 3% back at hardware and furniture stores, home improvement services, auto dealerships and parts stores, car repair shops, gas stations, plus health-related expenses like doctors, pharmacies, gym memberships and sporting goods stores. All other purchases earn 1% back. The idea is that if you’re planning a large purchase or project in one of those areas, this card rewards that spending handsomely. It also has no annual fee.
[[ SINGLE_CARD * {"id": "2899", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "No Annual Fee Seekers", "headerHint": "3% Unlimited Cash Back"} ]]
Upgrade Life Rewards Visa® – This is the newest addition, targeting everyday “life” expenses. It also offers 3% cash back in categories, but a different set: gas and EV charging, groceries and convenience stores, monthly bills like utilities, phone, cable, and streaming services, and health and fitness. Essentially, these are routine spend areas for many households. All other purchases earn 1% back. Life Rewards, like its siblings, has no annual fee and the same APR range and credit line potential.
[[ SINGLE_CARD * {"id": "11897", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "No Annual Fee Seekers", "headerHint": "Cash Back on Gas, Groceries, Etc."} ]]
Unique Feature: Upgrade OneCard – Pay Now or Pay Later
Upgrade OneCard – The OneCard is a bit of an outlier in the lineup. It’s like the “premium” version of the Upgrade Card concept, designed to be one card for everything by blending elements of a credit card, a personal loan, and even a debit card. With OneCard, you have the option to pay certain purchases in full immediately – in which case those transactions won’t incur interest – or let them roll into the usual installment plan if you need to carry a balance.
The rewards on OneCard are also different: you can earn 3% cash back on everyday purchases and 2% on all other purchases. However, these elevated rates require that you also have an Upgrade Rewards Checking Plus account and meet certain activity criteria. If you don’t meet those requirements, your OneCard earnings default to 1.5% – essentially the same as the regular flat-rate card. OneCard has no annual fee and its credit line/APR is identical to the other cards.
[[ SINGLE_CARD * {"id": "13481", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "No Annual Fee Seekers", "headerHint": "2% Cash Back Everywhere"} ]]
The No-Rewards Option: Upgrade Select (Basic)
Upgrade Select Visa® – Often just called “Upgrade Card”, this version does not earn cash back on regular purchases. Its only rewards come via discounts on purchases through Upgrade’s online shopping portal, and it carries a $39 annual fee. Why would anyone choose it? In practice, if you qualify for any of the other versions, there’s little reason to pick the Select card. The Select Visa is essentially a stripped-down Upgrade Card that sometimes is offered to those with slightly lower credit or specific circumstances. It does share the core features – no surprise fees, installment payments, same APR range – but with an annual fee and no straightforward cash back, it’s the least appealing of the bunch.
[[ SINGLE_CARD * {"id": "7624", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Low Annual Fee Seekers", "headerHint": "Flexible Card"} ]]
Whichever Upgrade card you choose, you can earn the $200 welcome bonus by opening that accompanying Upgrade checking account and making 3 debit transactions. Since all the cards have this offer and no annual fee, it’s a nice perk – effectively offsetting interest or purchases in your first few months.
Which Upgrade Card Should You Choose?
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Now for the verdict: which Upgrade card is best for you depends on your personal spending habits and financial goals. Let’s break down a few scenarios:
“I hate tracking categories – I just want simple cash back.”
Go with the Upgrade Cash Rewards Visa. It gives a flat 1.5% back on everything. You’ll never miss out on rewards due to spending in the “wrong” category, and 1.5% is decent for a card that can accept fair credit. If you just want to use the card for a bit of everything and earn predictable cash back, Cash Rewards is the straightforward choice.
“I have a big expense coming up in a specific category.”
Consider the Upgrade Triple Cash Rewards Visa. It’s tailor-made for someone anticipating major spending in home improvement, auto, or healthcare. For example, if you know you’ll spend a few thousand on a used car or a medical procedure, the 3% back will significantly out-earn the 1.5% flat card. Just be comfortable keeping track that only those categories get the 3%. For everyday use beyond that big expense, it’s okay if you get just 1% – the big win was on the large purchase.
“Most of my budget goes to everyday family expenses.”
The Upgrade Life Rewards Card might be your best match. It rewards the bread-and-butter spending: gas for your car, groceries every week, the electric, phone, and Netflix bills, etc. If these are significant monthly costs for you, getting 3% back consistently can beat a 1.5% flat card’s rewards total. Essentially, Life Rewards is like having a built-in bonus on life’s necessities – great for a family or anyone with high grocery and utility bills. Just remember it doesn’t reward travel or dining specifically, so outside those listed areas you drop to 1% back.
“I want the flexibility to avoid interest on some purchases and don’t mind an extra account.”
Opt for the Upgrade OneCard. If you plan to take advantage of its “Pay Now” feature to immediately pay off purchases, OneCard is unique. You should also be ready to open the Upgrade checking account and use it actively – that’s how you unlock the stellar 3%/2% rewards rates. OneCard is a bit more work to maximize, but it can essentially replace two cards in your wallet with one. This card is ideal for someone who values flexibility and is financially disciplined. If that’s you, OneCard offers both high rewards and control. If that’s not you, one of the simpler Upgrade cards above will likely be more rewarding with less effort.
“My credit is on the low end of fair (mid-600s or below).”
You might only pre-qualify for the basic Upgrade Card. If so, focus on using it to build credit – pay on time and in full as much as possible. Over time, you can try again for a rewards version. There’s little point to choosing the $39-fee Upgrade card if you can get a no-fee one, so this option is really only for those who aren’t offered the others. One alternative, if you’re rebuilding credit, could be the Upgrade Secured OneCard, a secured card that requires a deposit but earns rewards; however, it’s not available for direct sign-ups.
FAQ – Upgrade Cards, Answered
Are Upgrade cards legit credit cards or just personal loans?
Upgrade cards are legitimate Visa credit cards, issued by a bank partner (Cross River Bank). They function like a credit card for making purchases, but behind the scenes each purchase you don’t pay off immediately is turned into a fixed-rate installment loan. This hybrid setup is different from traditional cards, but it’s not a scam – it’s an intentional design to help you pay down balances in a set time frame.
Do I need a bank account with Upgrade to use these cards?
No, not for most Upgrade cards. You can pay your monthly card bill from any bank account. However, the Upgrade OneCard does require an Upgrade Rewards Checking Plus℠ account to unlock its top rewards rates. If you don’t have or use an Upgrade checking account with OneCard, you’ll still get the card’s base cash back (1.5%) and you can still use the card’s Pay Now vs. Pay Later features – you just won’t earn the higher 3%/2% rewards. None of the other Upgrade cards require you to bank with Upgrade, though opening the Upgrade checking is how you get the $200 bonus and it could be convenient for managing your card payments.
What credit score do I need to get an Upgrade card?
Aim for at least fair credit. Upgrade targets people across the fair-to-excellent range. Many users report getting approved in the mid-600s score range. Because the product is somewhat loan-like, they will consider your income and debt in addition to credit score. If your score is much lower, you might not qualify for an unsecured Upgrade card – though Upgrade might offer a secured version that lets you deposit funds to open a credit line.
Can I have more than one Upgrade card at the same time?
Generally, no – you’ll start with one Upgrade card/loan account. When you use Upgrade’s pre-approval process, they will usually present you with one option (e.g. “Upgrade Cash Rewards Visa with $X limit”). You cannot apply for multiple different Upgrade cards simultaneously like you might with other issuers. That said, Upgrade does occasionally allow product changes or upgrades. For example, if you have the basic card, you might be able to request switching to a rewards version after some time. But you won’t carry two separate Upgrade card balances at once. If you’re interested in a different version, you’d likely have to close out or pay off the first and then apply anew.
How does paying off an Upgrade card work, and can it help my credit?
Paying off an Upgrade card is structured and predictable. Each month, you’ll have a fixed payment (covering principal + interest for that term) rather than a minimum that varies. You can always pay extra or early without penalty – which will save on interest. This setup can instill good repayment habits and potentially boost your credit score if you make on-time payments, since payment history is a big factor. Upgrade reports your payments to the major bureaus, so yes, it can help build credit.
Conclusion (+ a Smart Way to Maximize Rewards)
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Choosing among Upgrade’s cards comes down to matching the card to your needs – whether it’s simplicity, specific 3% categories, or flexible payment options. The good news is all the cards offer a way to avoid the cycle of endless minimum payments and come with no annual fees, so you can focus on what fits your spending. If you prefer an easy flat reward, the Cash Rewards card is a no-brainer. If you have big purchases on the horizon or lots of routine expenses, one of the 3% category cards can really pay off. And if you want maximum control and don’t mind an extra account, OneCard is one-of-a-kind.
No matter which Upgrade card you go with, remember you can pair it with tools like Kudos to get even more out of it. For example, the Kudos smart wallet can automatically recommend the best card in your wallet for each purchase – ensuring if you do carry multiple cards, you’re always using the one that gives you the highest rewards. In short, pick the Upgrade card that fits you, use it wisely, and let the rewards and benefits Upgrade designed roll in. With responsible use, any of these cards can be a valuable addition – offering you cash back and a clear payoff plan, which together can upgrade your financial life. Happy spending!
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