Buzz
For all the rewards lovers out there, especially those fond of the Chase Sapphire credit card, we know you’re always on the lookout for new cards packed with fantastic perks. Now that Uber has entered the credit card space, you might be wondering if it's worth your time—and that hard pull on your credit report.
With boycotts and controversies surrounding Uber, it’s been a challenging year for the company, making their entry into the credit card rewards market a bold move. Here’s how Uber’s co-branded Visa card, launched on November 2nd, is aiming to attract customers:
4% cashback on dining (4 points per dollar spent)
3 points per dollar on travel expenses, such as hotels and flights
2 points per dollar on online purchases, including Uber
1 point per dollar on all other purchases
“The standout benefit is the 4% rewards rate on dining—we rarely see such a high rate in the dining category,” said Kimberly Palmer, a credit card expert at NerdWallet.
While the Chase Sapphire Reserve boasts an “effective rewards rate of 4.5%,” according to NerdWallet, which is hard to surpass, it also carries a $450 annual fee (although with a $300 annual travel credit, it feels more like $150). The Uber Visa, on the other hand, comes with no annual fee and allows you to redeem points for Uber credits, cash back, or gift cards. (You can apply online here).
Typically, cards with such generous rewards tend to have an annual fee, but this one doesn’t,” Palmer noted. “Plus, it offers a $50 reward for subscriptions like Netflix and Spotify after meeting a spending requirement in the first year. If you’re already paying for these subscriptions, you’ll get extra benefit by using this card to pay,” she added.
There’s also a sign-up bonus: earn 10,000 points (equivalent to $100) when you spend $500 in the first 90 days. As with any solid rewards card, the Uber Visa also doesn’t charge foreign transaction fees.
However, there are a few limitations you should know about. According to NerdWallet:
To redeem points for Uber credits, you’ll need at least 500 points (which equals $5)
Cardholders are limited to redeeming up to $500 in Uber credits per day
Mobile phone insurance is capped at $600 for damage or theft, and the Uber Visa must be used to pay your mobile phone bill in order to qualify
To earn the $50 annual online subscription credit, you need to charge at least $5,000 to your card each year
Naturally, this assumes you’re not still boycotting Uber. Earlier this year, more than 200,000 users deleted the app after Uber undermined the New York Taxi Workers Alliance’s strike against the Muslim “travel” ban, which eventually led to the CEO’s resignation. This wasn’t the first negative press surrounding Uber (and as Jezebel notes, many of Uber’s issues are shared by Lyft). However, it seems they are attempting to improve their reputation, and entering the rewards space could be part of that strategy. From a practical standpoint, the card does appear to offer solid rewards for users.
“The main consideration is the opportunity cost of other credit cards you might use instead,” Palmer explained. “If your spending habits align better with a different card, you could be better off elsewhere. But for frequent Uber users who enjoy dining out and using Uber EATS, the downsides are minimal.”
We’d be remiss if we didn’t add our usual reminder: use your rewards credit card responsibly. Otherwise, you’re simply accumulating debt—and that’s not exactly the reward you’re looking for.
