Upgrade Cash Rewards Visa® review: Turn credit card balances into installment loans

If you’re trying to decide how best to cover large upcoming expenses, the Upgrade Cash Rewards Visa® may be worth a look. Though the card lacks a zero percent intro APR, it could be a useful financing tool if you worry about your ability to manage a repayment plan.

The Upgrade Cash Rewards Visa works differently than a typical credit card. Here’s how:

• Upon approval, you’re extended a line of credit, APR and installment terms of 12 to 60 months, based on your credit score.
• You can use the card either for purchases or transfer funds directly into your bank account.
• At the end of the month, an installment plan is created based on your current monthly balance.
• Similar to a personal loan, the installment plan means your payments will be fixed and equal monthly payments.
• As you pay down the balance each month, you earn cash back rewards of 1.5 percent, which goes directly towards your balance the next month — further reducing the amount you owe.
• You’ll make the same amount of payments each month until the balance is paid in full.

While you won’t be able to avoid all interest charges, the Upgrade Cash Rewards Visa card’s unique blend of a credit card and personal loan could save you money by obligating you to pay off your purchases within a set period. Instead of risking the ballooning balance and high interest charges that come when you only pay the minimum due on a credit card, you’ll have a clear payoff schedule to follow.

That said, if you’re confident in your ability to pay off your balance on time, a credit card with a zero percent intro APR on purchases will probably be a better fit.

Quick highlights

• Rewards rate: Earn 1.5 percent unlimited cash back on card purchases every time you make a payment
• Welcome offer: $200 bonus after opening a Rewards Checking account and making 3 debit card transactions*
• Annual fee: $0
• Purchase intro APR: None
• Balance transfer intro APR: None
• Regular APR: 14.99 percent to 29.99 percent (variable)

While the Upgrade Cash Rewards Visa card offers little in the way of cardholder perks, it carries a few  advantages over traditional credit cards. The main advantage is transparency: You’ll know what you need to contribute each month to pay off your balance on time. You can also check your credit line and rate before you commit to the card.

Here are a few benefits of the Upgrade card:

Chance at a very low APR

Depending on your credit history, you could qualify for an APR as low as 14.99 percent variable.

Of course, if you opted for a card with a zero percent intro APR on purchases, you could avoid interest completely for several months (typically 12 to 15 months, but some cards offer intro APRs for as long as 21 months). However, the catch is that when your intro APR period ends, any balance that remains will be subject to the card’s standard APR. If you have trouble managing payments and wind up underpaying your balance, you’ll soon find yourself drowning in interest charges.

The Upgrade website uses data from Bankrate’s credit card interest calculator to show how much you could save by paying off a $10,000 balance with the Upgrade card instead of paying the minimum due on a traditional credit card — assuming you’re assigned an 18 percent APR and a 24-month term. Accounting for interest accrued between the charge date and the due date 51 days later:

In this (somewhat dramatic) example, using the Upgrade card would save you over $12,000 and 26 years versus paying the minimum due on a credit card with the same interest rate.

Of course, paying off your balance sooner means you’ll pay less in interest.

Keep in mind that you’re not guaranteed a particularly low APR with the Upgrade card. If you have  limited credit history or a middling score, you could wind up with the Upgrade card’s high-end APR of 29.99 percent, which is extremely high, even compared to the rate offered on many of the best credit cards for bad credit. If that’s the case, you may want to try working on your credit score for a few months first to see if you can get better terms.

Potentially large credit line

You also have a chance at a higher credit limit with the Upgrade card than you’re likely to find on a typical credit card. The Upgrade card offers personal credit lines from $500 to $25,000, depending on your credit history. That rivals some of the best high-limit credit cards on the market.

A large credit line could be an especially big help if you need to finance a few big expenses and want to avoid signing up for a deferred interest financing plan (which could end up costing a ton if you have any balance left at the end of the introductory period).

But again, there’s no guarantee you’ll be offered a high limit. It all depends on your credit history. In fact, Upgrade’s card terms state that they actually offer credit lines up to $50,000. However, the terms also say that the majority of credit lines are below $25,000.

Check terms with no hard credit pull

Luckily, you can check your Upgrade card credit line and APR before committing to the card. This gives you a chance to see whether it makes sense to move forward without risking your credit score via a hard credit inquiry. Contrast this with traditional credit cards, which almost always require you to apply and face a hard pull before you know what your credit limit and APR will be.

Easy workaround for balance transfers

While the Upgrade card does not technically support balance transfers, there is an easy workaround: Simply have your funds deposited to your bank account, pay off your existing debt and then pay off your Upgrade card balance over time according to your account’s installment terms.

Given how tough it can be to qualify for one of the best balance transfer cards, this could be a decent option. While you won’t be able to completely avoid interest charges as you would with a zero percent intro APR, you could still save a ton if the APR you’re offered on the Upgrade card is much lower than the rate on your current credit card.

Cash back

The Upgrade card delivers an impressive cash back rate for such a low-fee card available for cardholders with “average” credit or higher (580+ FICO score). Cardholders get an unlimited 1.5 percent cash back on all purchases when they are paid back on time. That’s a great deal considering similar cards typically have much higher credit score requirements. Your cash back is added to your account balance after your next scheduled monthly payment as a statement credit.

As discussed, the Upgrade card’s APR is a bit of a mixed bag: You’ll be assigned an APR between 14.99 percent and 29.99 percent, depending on your credit score. While a 29.99 percent APR is very high, an APR of 14.99 percent is relatively low — even compared to the lowest-interest credit cards on the market. Just keep in mind that the Upgrade card terms state that you’re required to enroll in autopay to be potentially eligible for the lowest rates.

When it comes to fees, though, the Upgrade card is a clear winner. The card charges no fees of any kind: 

• No annual fee
• No cash advance fee
• No late payment fee

There’s also no prepayment fee, so you can pay your balance off as soon as you’re able and save on interest.

While the Upgrade card could be a useful tool for someone looking to pay off a large purchase over a longer period of time, it might be wise to consider other cards with 0 percent APR as well, giving you the option to pay down your balance and avoid costly interest charges.

Upgrade Visa Card with Cash Rewards vs. Discover it® chrome

The Discover it® chrome offers cardholders multiple benefits, including cash back rewards and impressive introductory rates. For starters, you earn 2 percent cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter, 1 percent thereafter), plus another 1 percent on all other purchases, giving you ample opportunity to earn cash back for essential purchases. As an added bonus, Discover will match all the cash back you earned the first year as a potentially lucrative welcome offer.

Additionally, the card offers a 0 percent introductory APR rate for both purchases and balance transfers for 15 months, then the 16.74 percent to 27.74 percent variable APR applies. This gives you a longer period to pay down existing high-interest credit card balances or make a larger purchase if needed. Unlike the Upgrade Visa Card, you can limit interest payments and earn rewards at the same time, which makes the Discover it® chrome is worth considering.

Upgrade Visa Card with Cash Rewards vs. Capital One QuicksilverOne Cash Rewards Credit Card

If you like the idea of getting rewarded with increased credit based on responsible payments, then the Capital One QuicksilverOne Cash Rewards Credit Card may appeal to you. After six months of on-time payments, you may be eligible for a higher credit limit, which helps build your credit profile. Additionally, you earn an unlimited 1.5 percent cash back on all purchases (plus five percent on hotel and rental car purchases booked through Capital One Travel). You have a chance to improve your credit profile and earn cash back with this card.

The card includes a $39 annual fee, which increases the cost of carrying it. You can also expect the interest rate to be on the higher side, currently at 29.99 percent APR (variable). Without any introductory APR offers, the card could be more expensive than the Upgrade Visa Card if you choose to carry a balance or make a balance transfer.

Best cards to pair with this card

Since the Upgrade card offers flat-rate rewards, it may be wise to pair it with a credit card that earns a higher cash back rate on specialized categories. This way, you can chip away at the cost of a large expense like a home repair with applicable bonus categories while also earning rewards on the things you purchase every day.

If you don’t mind doing a bit of legwork to earn extra rewards on some of your purchases, the Discover it® Cash Back card is worth a look. You’ll earn 5 percent cash back in bonus categories that rotate each quarter (upon enrollment, up to $1,500 in spending per quarter, then 1 percent) and 1 percent back on general purchases. The Discover cash back calendar for 2023 includes grocery stores, streaming services, restaurants, and more.

The Upgrade card could offer a predictable and transparent financing alternative for cardholders who struggle with managing credit card balances. By putting your balance into an installment plan, the card could help you minimize interest charges and keep your debt repayment efforts on track while earning cash back on all purchases.

But how much you’ll save — and whether you’ll save at all — comes down to the Upgrade card APR you’re assigned. If you can’t qualify for one of the card’s lower-end APRs, it won’t be nearly as compelling as a traditional credit card that comes with a zero percent intro APR on purchases and helps you avoid interest completely for 12 months or more. Luckily, though, you can see your credit line and APR before you move forward with your Upgrade card application.

*Earn a $200 bonus after opening a Rewards Checking account and making 3 debit card transactions within 60 days. If you have previously opened a Rewards Checking account or do not open one as part of this application process, you are not eligible for this welcome bonus offer.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.