October 26, 2017 in Credit Cards
Uber

The ride-sharing service Uber aims to disrupt another business, this time with a no-fee credit card that will offer users exceptionally high cash-back rewards.

Launching Nov. 2 in partnership with Barclays, Uber Visa cardholders will earn an unlimited:

  • 4% back for every $1 spent on restaurants, takeout, and bars, including UberEATS.
  • 3% back on airfare, hotels and vacation home rentals.
  • 2% back on online purchases including Uber, online shopping, video and music streaming services (certain online purchases are excluded.)
  • 1% back on all other purchases.

Why this card stands out

That restaurant rewards rate is the highest among no-annual-fee credit cards, besting the newly launched Capital One Savor Cash Rewards Credit Card and the PNC Cash Rewards Visa Credit Card. You can earn slightly more with the Chase Sapphire Reserve (4.5 points) when you redeem your rewards for travel on the Chase portal. That card comes with a $450 annual fee, though.

The boosted earnings rate on airfare and lodging also puts the Uber Visa Card on a par with the rewards offered by some of the top premium travel rewards cards, like the Chase Sapphire Reserve and the Citi Prestige Card.

It’s also the first card to offer enhanced rewards on all online purchases, which includes Amazon and subscription services like Netflix and Hulu.

“We want this card to be something users get value from every day,” says Drew Quinn, a product manager for Uber.

How it works

The Uber Visa card earns points back at a value of 1 cent per point. If you spend $1,000 in a month on dining out, you’ll earn 4,000 points, which can be redeemed for either $40 worth of Uber credit, cash-back as a statement credit or gift cards. There is no fee to redeem your points. Uber redemptions start at a minimum of $5 and cash back or gift card redemptions start at $25.

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There’s a sign-up bonus of 10,000 points, worth $100, after you spend $500 within the first 90 days of account opening.

Every year you spend at least $5,000 on the card, you’ll get statement credits of up to $50 to offset the cost of streaming services you pay for with the card like Netflix, Amazon Prime, DirecTV Now, Pandora and Sirius XM. The card also offers up to $600 worth of cell phone insurance if you pay the phone bill with the card.

Is this a good card?

Yes, if these are areas in which you spend frequently. Urban dwellers and millennials in particular are most likely to benefit from this card’s structure, since they tend to spend more on dining out then other age groups.

It’s worth noting that this card comes with Visa Signature benefits, which include travel and car rental insurance and protections and extended warranties.

If your biggest expenses are gas and groceries, the rewards structure of this card may not work in your favor. And, if you typically carry a balance, the finance charges on this card—a variable 15.99% to 24.74% APR, are going to cost you more than the value of any rewards.

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