topic Re: New Upgrade Triple Cash Rewards Visa Card? in Credit Cards

New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Thu, 01 Apr 2021 16:41:50 GMT

So I was just poking around checking my CK updates this AM and noticed a card I had not seen before. The categories it covers are VERY BROAD.

Upgrade Triple Cash Rewards Visa

3% unlimited cash back on Home categories (Home Depot, Lowes, Menards, Wayfair, Ikea as samples)
3% unlimited cash back on Health categories (Walgreens, CVS, Academy Sports, Dicks Sporting Goods, Midway USA as samples)
3% unlimited cash back on Auto categories (Tractor Supply, Discount Tire, Firestone, Tires.com, Mavis Tire as samples)
$0 Fees (annual, maintenance and activation)
APR Range 8.99% - 29.99%

I just googled the card and can't find anything on it. All the information I found on it is within the CK app as you go thru the various links. I'm familiar with the green 1.5% card, but I had not heard anything about this one. Anybody else? It actually has a solid rewards structure

*Mods if this was already posted somewhere please feel free to merge

Details found under T&C's

HUGE HOME CATEGORY

Health includes Recreational/Golf Courses/Personal Care

Auto covers almost everything auto related

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Thu, 01 Apr 2021 15:29:53 GMT

Might just be a very new card, so thats why there isn't any info online. Seems like a great card. APR at worst sounds a bit high, but regardless I'd say its worth the app! 👍

Re: New Upgrade Triple Cash Rewards Visa Card?

Remedios — Thu, 01 Apr 2021 15:29:48 GMT

I've never seen it before.

For the right person, that would be a great card.

Re: New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Thu, 01 Apr 2021 16:39:40 GMT

@Remedios so check this out. It has a "check my credit line" function -- a preapproval link, if you will. Being a curious jerk I went thru the process. Hot Dang!

Re: New Upgrade Triple Cash Rewards Visa Card?

Slabenstein — Thu, 01 Apr 2021 15:46:37 GMT

"Each Upgrade Card transaction will have a fixed payment period and a fixed APR. If you make more than one transaction in a statement period they will be combined into one fixed payment. The Upgrade card provides you with access to a series of closed end loans and is not a credit card."

This makes me wonder 1) whether there's a prepayment penalty, 2) whether there's a grace period, and 3) how it reports. If all it is is a piece of plastic that preapproves you for personal loans then it might not be suited to transacting and might not be fun for your AAoA.

Re: New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Thu, 01 Apr 2021 15:54:35 GMT

@Slabenstein wrote:
"Each Upgrade Card transaction will have a fixed payment period and a fixed APR. If you make more than one transaction in a statement period they will be combined into one fixed payment. The Upgrade card provides you with access to a series of closed end loans and is not a credit card."

This makes me wonder 1) whether there's a prepayment penalty, 2) whether there's a grace period, and 3) how it reports. If all it is is a piece of plastic that preapproves you for personal loans then it might not be suited to transacting and might not be fun for your AAoA.

I agree. I'm not super clear but it sounds like a large loan of $30k (in this case), and you're borrowing against that total amount. I dont know if it's actually a "line of credit" that is just sitting there, vs "once I deplete the $30k, then I'd have to reapply for another line". The shopping categories are useful but I think it should be approached like a large project, and using this card to "build the loan" for it

Still was nice to see them say "how about $30k?" to start the day lol

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Thu, 01 Apr 2021 16:03:38 GMT

Beware that like the regular Upgrade card, this seems like it would create new installment loans when you use it.

https://ficoforums.myfico.com/t5/Credit-Cards/Upgrade-Card/td-p/5760895

Re: New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Sun, 22 Aug 2021 21:58:01 GMT

@Saeren wrote:
Beware that like the regular Upgrade card, this seems like it would create new installment loans when you use it.

https://ficoforums.myfico.com/t5/Credit-Cards/Upgrade-Card/td-p/5760895

LOL @Saeren I was just reading thru that thread. It's funny that I understood it with more clarity reading thru the forums than their actual website. I learned:

It shows up an installment loan on CR's
It only reports the amounts I borrow (so if I charged $500, then it would show a loan for $500 with a balance of $500 remaining)
It does not impact 5/24
It would charge interest no matter how soon I pay off a charge since every purchase is "converted to a loan" -- no grace period
You essentially can create various "mini-loans" until you've exhausted all the money available from the original amount
You can transfer money directly to a bank account if you want
Nothing reports to the CRA's until you actually charge/withdraw against it
It would be good for emergency expenses, but not day-to-day

Interesting setup.

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Sun, 22 Aug 2021 21:58:39 GMT

@credit_is_crack wrote:
@Saeren wrote:
Beware that like the regular Upgrade card, this seems like it would create new installment loans when you use it.

https://ficoforums.myfico.com/t5/Credit-Cards/Upgrade-Card/td-p/5760895
LOL @Saeren I was just reading thru that thread. It's funny that I understood it with more clarity reading thru the forums than their actual website. I learned:

It shows up an installment loan on CR's
It only reports the amounts I borrow (so if I charged $500, then it would show a loan for $500 with a balance of $500 remaining)
It does not impact 5/24
It would charge interest no matter how soon I pay off a charge since every purchase is "converted to a loan" -- no grace period
You essentially can create various "mini-loans" until you've exhausted all the money available from the original amount
You can transfer money directly to a bank account if you want
Nothing reports to the CRA's until you actually charge/withdraw against it
It would be good for emergency expenses, but not day-to-day
Interesting setup.

It's like a credit card with none of the perks (except the rewards in the case of this card) of a revolver 😂

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Thu, 01 Apr 2021 20:54:41 GMT

In the credit card space:

If it looks too good to be true, check again, and if it is still too good to be true, apply ASAP before it gets nerfed!

Looks like this particular example fails the second check....

Re: New Upgrade Triple Cash Rewards Visa Card?

4sallypat — Thu, 01 Apr 2021 22:35:04 GMT

@credit_is_crack wrote:
@Remedios so check this out. It has a "check my credit line" function -- a preapproval link, if you will. Being a curious jerk I went thru the process. Hot Dang!

I had an Upgrade loan a couple years ago and they are wanting me to get this too.

Was there a SP or HP when you got the pre-approval ??

Re: New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Fri, 02 Apr 2021 00:43:56 GMT

@4sallypat

When I went they the process it was a SP. asks for name, address, DOB and then gave me the result. It then has continue buttons if you decide to move forward

Re: New Upgrade Triple Cash Rewards Visa Card?

4sallypat — Fri, 02 Apr 2021 13:23:23 GMT

The so called cash back reward is negated when you add in the APR.

This installment loan will automatically add the APR for a fixed length of time ?

Is there a pre-payment penalty to avoid the APR charges ?

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Fri, 02 Apr 2021 13:25:49 GMT

@4sallypat wrote:
The so called cash back reward is negated when you add in the APR.

This installment loan will automatically add the APR for a fixed length of time ?

Is there a pre-payment penalty to avoid the APR charges ?

There's no prepayment penalty as far as I can tell. I would be surprised if there was one since this is basically forcing people to pay interest on something they could have stuck on an actual revolver with a grace period.

ETA: "Are there any prepayment fees?

Personal Loans and Upgrade Card with personal credit line obtained through Upgrade do not have any prepayment fees, so you can pay your loan off at any time."

https://upgrade.zendesk.com/hc/en-us/articles/115005205667-Are-there-any-prepayment-fees-

Re: New Upgrade Triple Cash Rewards Visa Card?

credit_is_crack — Sun, 22 Aug 2021 21:59:33 GMT

@Saeren wrote:
@4sallypat wrote:
The so called cash back reward is negated when you add in the APR.

This installment loan will automatically add the APR for a fixed length of time ?

Is there a pre-payment penalty to avoid the APR charges ?
There's no prepayment penalty as far as I can tell. I would be surprised if there was one since this is basically forcing people to pay interest on something they could have stuck on an actual revolver with a grace period.

ETA: "Are there any prepayment fees?
Personal Loans and Upgrade Card with personal credit line obtained through Upgrade do not have any prepayment fees, so you can pay your loan off at any time."

https://upgrade.zendesk.com/hc/en-us/articles/115005205667-Are-there-any-prepayment-fees-

+1 @4sallypat . I think the rewards is how they're luring us in (like they did me), but if you go thru the full descriptions you'll see what it really is

You make purchases with the card throughout the month
At the end of the month it says "Okay, you spent a total of $450, let's plan this out"
It then says "Would you like to pay the $450 in 12mo, 24mo, 36mo?" - or whatever options they offer
Once you select the range, it calculates the APR and you've got even monthly payments to pay off that $450
However interest begins accruing the day of the charge so if you did 3 charges to get to $450, they'd all begin accruing interest the day it happened (Charge 1 on 3/1, Charge 2 on 3/15 and Charge 3 on 3/29) -- as a sample
If by chance those 3 charges are part of the cash back categories then you get cash back, but like you mentioned the APR will void out the rewards unless the reward amount is greater than your APR (lowest they offer is 8.99% so it's moot). It's really more to reduce the interest you have to pay, at least that's how I'm seeing it

I really would approach it as "a hidden personal loan that won't show up on my credit report until I start charging/'drawing' against it". The Rewards are an aesthetic.

If I used up all $30k in a rewards category, then I'd be reducing my interest total by $900 ($30,000 x 3% = $900 Cash Back). It's still money, but what I'm really committing to is a personal loan that charges interest.

What it also calls out is that as I'm paying off loans, they'll continue to SP my reports and if things get crazy, they may say "Originally you had $30k and already spent $450 leaving you $29,550. However we see you've run up a lot of debt so we're reducing the $29,550 you had available down to $15,000" -- this part is not as attractive, but it also says if things are going well they could increase the amount, say from $30k to $50k. Just depends on what's going on, and that part is very much like a credit card (auto CLI's, auto CLD's and balance chasing).

This one is very particular, but even after cutting the guts out, if you think of it as a loan, I STILL think it could be useful. Just gotta be strategic with it. Sometimes you just need money and rewards earnings are not at the forefront.

Re: New Upgrade Triple Cash Rewards Visa Card?

4sallypat — Sun, 22 Aug 2021 22:00:03 GMT

@Saeren wrote:
@4sallypat wrote:
The so called cash back reward is negated when you add in the APR.

This installment loan will automatically add the APR for a fixed length of time ?

Is there a pre-payment penalty to avoid the APR charges ?
There's no prepayment penalty as far as I can tell. I would be surprised if there was one since this is basically forcing people to pay interest on something they could have stuck on an actual revolver with a grace period.

ETA: "Are there any prepayment fees?
Personal Loans and Upgrade Card with personal credit line obtained through Upgrade do not have any prepayment fees, so you can pay your loan off at any time."

https://upgrade.zendesk.com/hc/en-us/articles/115005205667-Are-there-any-prepayment-fees-

So this means you can utilize this as an actual credit card with rewards and zero interest if you pay off during the grace period ??

But doesn't the CL shrink as you use it and repay?

It's not a typical revolver card - it's an installment loan card...

In addition, at the start of the CL, there is a one-time origination fee which is deducted from your total loan amount before the funds are sent to you

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Fri, 02 Apr 2021 14:11:47 GMT

@4sallypat wrote:
@Anonymous wrote:
@4sallypat wrote:
The so called cash back reward is negated when you add in the APR.

This installment loan will automatically add the APR for a fixed length of time ?

Is there a pre-payment penalty to avoid the APR charges ?
There's no prepayment penalty as far as I can tell. I would be surprised if there was one since this is basically forcing people to pay interest on something they could have stuck on an actual revolver with a grace period.

ETA: "Are there any prepayment fees?
Personal Loans and Upgrade Card with personal credit line obtained through Upgrade do not have any prepayment fees, so you can pay your loan off at any time."

https://upgrade.zendesk.com/hc/en-us/articles/115005205667-Are-there-any-prepayment-fees-
So this means you can utilize this as an actual credit card with rewards and zero interest if you pay off during the grace period ??
But doesn't the CL shrink as you use it and repay?
It's not a typical revolver card - it's an installment loan card...

There's no grace period. Interest from day one.

The CL is used up when you make purchases and then is released as you pay if I understand it correctly which makes it more of a revolver than an installment loan in that regard at least.

Re: New Upgrade Triple Cash Rewards Visa Card?

4sallypat — Sun, 22 Aug 2021 22:00:33 GMT

Thanks @Saeren for clearing that up!!!

So it's like a cash advance where interest starts from day 1 and the 1 time loan origination fee on top of that really does not make it a value even with their 3% rewards back...

Re: New Upgrade Triple Cash Rewards Visa Card?

4sallypat — Fri, 02 Apr 2021 14:19:43 GMT

Very well summarized @credit_is_crack - I guess this can be of help to some people in certain situations.

I just hate the 3% cash back rewards when in actuality, it's more of a teaser to spend and get charged interest....

So in your case, your APR would may actually drop from 14.99% to 11.99% the first year....

Re: New Upgrade Triple Cash Rewards Visa Card?

Anonymous — Fri, 02 Apr 2021 14:20:44 GMT

@4sallypat wrote:
Thanks @Anonymous for clearing that up!!!

So it's like a cash advance where interest starts from day 1 and the 1 time loan origination fee on top of that really does not make it a value even with their 3% rewards back...

I don't think there's a fee for the card... This company does both loans and two different Upgrade card reward structures so it can get confusing.

"Lower Cost

No fees and set payoffs bring your balance down faster so you pay less interest"

https://www.upgrade.com/upgrade-card/