Upgrade Cash Rewards Visa Card Review: Unique, Competitive, but Not for Everyone

The Upgrade Cash Rewards Visa can be a practical choice for individuals with fair credit who want access to credit and cash back on purchases, but don’t always pay off their balances. With a MoneyGeek score of 4.1 out of 5, this card offers 1.5% cash back on all purchases with no annual fee — a rare benefit for fair-credit applicants.

However, the card’s biggest benefit and drawback is that it’s not a normal credit card. Each statement period your expenditures are packaged into a personal loan with a fixed interest rate and an installment payment plan. If you’re running a balance on your cards on a regular basis, this can be a better deal than trying to keep up with spiraling interest on a normal credit card. 

With fixed payments, it’s easier to plan ahead and budget. However, if you’re already paying your cards in full every month, the setup can be cumbersome, but you do have the option to pay off your balances early.

While the Upgrade Cash Rewards Visa reports to major credit bureaus and helps build credit, users who want a traditional credit card with more flexibility might consider the Capital One Platinum Credit Card. This no-annual-fee card lacks cash back but is also a more typical unsecured credit card.

The Upgrade Cash Rewards Visa isn’t structured like a traditional credit card — it blends elements of a credit card and a personal loan. Here’s a breakdown of how it functions:

• Line of Credit with Installment Terms: Upon approval, you receive a line of credit with an APR and installment terms, typically from 12 to 60 months, based on your credit profile.
• Flexible Spending Options: Use the card for everyday purchases or transfer funds directly to your bank account, similar to a cash advance, providing versatile access to your credit line.
• Immediate Interest Accrual: Interest begins accruing as soon as you make a purchase or transfer funds, as this card doesn’t offer a grace period for interest-free payments.
• Automatic Monthly Installment Plan: Each billing cycle, your balance is converted into a fixed installment plan with predictable monthly payments, similar to a personal loan, offering a structured payoff schedule.

The application process for the Upgrade Cash Rewards Visa card starts with a soft credit inquiry for pre-approval, allowing you to check your eligibility without affecting your credit score. If you choose to proceed, a hard credit pull will be performed, which is standard for most credit cards and may temporarily lower your score.

Credit limits range from $500 to $25,000, with most users reporting limits under $15,000, depending on factors like credit history, income and other financial details. While many applicants receive instant decisions, some may need to provide additional documentation, especially if there are discrepancies or limited credit history.

Feedback from platforms like Credit Karma and Reddit highlights potential downsides, such as credit limits being reduced unexpectedly, challenges qualifying for bonuses and confusion around the card’s terms. The card operates differently from traditional credit cards, as it combines a credit line with installment-based repayment, which some users find confusing.

The Upgrade Cash Rewards Visa offers a straightforward rewards program with 1.5% unlimited cash back on all purchases. This is a competitive rate for a no-annual-fee card, particularly one accessible to applicants with fair credit. While it doesn’t include bonus categories, the steady cash back rate makes it a dependable choice for everyday spending.

Redeeming rewards is easy. Cash back is available as a statement credit, giving you full value without the worry of points expiring.

The Upgrade Cash Rewards Visa doesn’t include common introductory perks like a 0% APR or intro bonuses, which are often found with cash back cards aimed at users with good to excellent credit. Still, this isn’t unusual since introductory offers are rare among cards for fair credit.

The Upgrade Cash Rewards Visa doesn’t have a typical welcome bonus. However, it offers a $200 bonus if you open a Rewards Checking Plus account and make three debit transactions. Unlike traditional welcome bonuses, which reward you after meeting a spending requirement, this bonus requires signing up for another Upgrade product.

This setup may work well for users who want to combine their banking and credit with Upgrade, but it won’t appeal to everyone. Since it promotes Upgrade’s other services, the offer may feel more like a marketing incentive than a straightforward cash back reward.

The Upgrade Cash Rewards Visa doesn’t offer a grace period. Unlike traditional credit cards, where interest is charged only after the billing cycle if a balance remains, this card starts accruing interest immediately on purchases. This can be a drawback for those used to standard credit cards. However, with no annual fee, it’s still an appealing option for individuals with fair credit.

Here's a breakdown of the card's fees and penalties:

• APR Range: 14.99% to 29.99%
• Annual Fee: $0
• Late Payment Fee: None
• Foreign Transaction Fee: None

Customer satisfaction with the Upgrade Cash Rewards Visa is mixed. While users appreciate the card's predictable payment structure and 1.5% cash back rewards, the lack of a grace period and confusion related to the hybrid setup are common complaints. Some users have also called out Upgrade’s lack of transparency with the way interest is charged on purchases.

The card's issuer satisfaction rating is low, ranking 65th among all cards, indicating room for improvement in service. If you want a hassle-free experience, this is a major drawback to consider.

To help you decide on the Upgrade Cash Rewards Visa, we compare it with similar cards.

We evaluated the Upgrade Cash Rewards Visa using our Cash Back Score, reviewing 78 cards in total. The evaluation considered several factors:

• Effective Reward Rate (50%): Measures how rewarding the card's cash back program is.
• Annual Fee (10%): Rates the annual fee, with five indicating no fee.
• Intro Purchase Offer (5%): Rates the 0% APR offer on purchases.
• Recommended Credit (5%): Rates the accessibility based on credit score.
• Issuer Satisfaction (5%): Based on J.D. Power issuer satisfaction study.
• Penalties (5%): Rates penalty rates and fees.
• Regular APR (5%): Rates the regular APR.
• Foreign Transaction (5%): Rates foreign transaction fees.
• Offer ROI (Return On Investment)(5%): Rates the return on introductory bonus offers.

We respond to frequently asked questions about the Upgrade Cash Rewards Visa to help you know more about the card.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.