The Smart Investor has collected card information independently. Issuers did not provide the details, nor are they responsible for their accuracy. The review is not a recommendation, the actual rates/fees may be different.
Uber, the ride-sharing company, has partnered with Barclays to offer a no annual fee rewards credit card.
It’s a great credit card option for anyone to use but it’s especially beneficial for travelers and millennials thanks to the cash back perks geared towards dining out, streaming services, and travel/airfare.
Card holders can earn 4% on dining, 3% on hotels and airfare, 2% on online purchases, 2% on uber, 2% on music and streaming services, and 1% on mostly everything else.
Let’s dive into the features of this credit card further and how it compares to other credit card options.
Uber Visa Card
On Uber’s Secure Website
Great Option If You Don’t Carry a Balance
Good – Excellent Credit
High Cash Back Rewards Program – 4% on dining, 3% on hotels and airfare, 2% on other services
Redeeming Points for Uber Credit – redeem points using the Uber app to Uber rides and UberEATS
High interest rate – Purchase APR rate is 16.74% – 22.49% or 25.49% Variable
Redemption Limit – $500 daily point redemption limit
- $100 cash back after spending $500 or more in the first 90 days
- Redeem points for Uber credits, gift cards, or cash back
- Up to $600 towards mobile phone supplemental insurance if you use the card to pay phone bills each month
- $50 credit towards digital subscription services if you spend over $5,000 annually using the credit card
- 1% cash back on every $1 spent everywhere.
- 4% on dining, 3% on hotels and airfare
- 2% on uber, on music and streaming services and on online purchases
Here’s a summary of the main pros & cons (click to see explanation or scroll down):
|High Cash Back Rewards Program (4-3-2-1)||High APR|
|Redeeming Points for Uber Credit||Balance Transfer Fees|
|No Annual Fee||Redemption Limit|
|No Foreign Transaction Fees|
Uber Visa Card – Benefits
Let’s take a closer look at the benefits and drawbacks of the Uber Visa Card – and whether or not it’s right for your wallet…
High Cash Back Rewards Program (4-3-2-1)
The Uber Visa Card has the highest cash back rate on dining at 4% and it includes restaurants, cafes, bars and even takeout like UberEATS. 3% on airfare and travel is also a very generous rate compared to other credit cards on the market.
Redeeming Points for Uber Credit
Uber loyalists will benefit most from Uber app-centric perks. You’ll enjoy the ability to manage and redeem points using the Uber app to redeem rewards for Uber rides and UberEATS. Cardholders can start redeeming cash back for Uber credits once their cashback balance reaches $5, or 500 points.
No Annual Fee
Another benefit you’ll love about Uber’s Visa Card is the $0 annual fee. This is a great benefit not having to worry about swiping the card enough to cover a yearly fixed payment!
Most other rewards card options (such as Capital One Venture Rewards or Chase Sapphire Preferred Card) have annual fees which can run as high as $197 per year, off-setting gains made on the cash back rewards programs.
No Foreign Transaction Fees
Cardholders can swipe to pay for items and services overseas without incurring foreign transaction fees. The lack of this fee combines with the 3% travel rewards bonus category to make the Uber Visa Card a good travel companion. Purchases made overseas also earn cashback rewards.
Uber Visa Card – Drawbacks
The Uber Visa Credit card does have a high-interest rate so if you carry a balance, you’re going to pay more in interest and it will cancel out the benefits you’re earning from the high rewards program. The Purchase APR rates for the Uber Visa card is 16.74%, 22.49% or 25.49% Variable
Balance Transfer Fees
The Uber Visa Card is also not a good option for anyone looking to consolidate credit card debt using a balance transfer.
Uber Visa Card cardholders don’t pay 0% interest on balance transfers for a period. Instead, they pay $10 or 3% of the transfer balance fee, whichever is greater of the two.
Lastly, Uber Visa has a $500 point redemption limit for a single day bank account transfer so if you plan to redeem more than 500 points or $500 in a single day, you won’t be able to. However, there is no limit for cash back redemption towards a statement credit or gift cards.
Alternatives to Uber Visa Card
Several other credit cards provide similar rewards to the Uber Visa Card while also offering the enticing sign-up bonuses and intro APR periods on purchases that the Uber Visa Card lacks.
The Citi® Double Cash Card has long been the gold standard for cash back credit cards, and even it has a tough time competing with the Uber Visa Card.
The Citi credit card provides 1% cash back on all purchases, and another 1% back whenever those purchases are paid off. Citi credit card holders are effectively earning 2% back in total for these transactions. This 2% back rate can never beat the Uber Visa Card when it comes to restaurant spending and airfare/hotels. Also, The Citi® Double Cash Card doesn’t have an annual fee.
If a decent part of your budget lies in these two categories, along with Uber and online shopping, the Uber credit card is the clear winner.
The Chase Freedom® credit card may be better than the Uber Visa Card if you don’t mind dealing with rotating categories for expenses in their rewards program.
The Chase Freedom® provides 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. These categories rotate quarterly and can include things like gas stations, grocery stores, restaurants, and Amazon.com. All other spending gets you just 1% back. Also, you get $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Is the Uber Visa Card Right for You?
Overall, the Uber Visa Credit Card is a great option that competes well against other major credit cards. It’s high cash back rates on dining out, online shopping, and transportation (uber, travel, airfare) make it very appealing to shoppers who frequent these spending categories. The no annual fee and the no foreign transaction fee are additional perks you’ll enjoy that most other card options don’t offer.
Its downsides are the high interest rates and balance transfer fees if you carry a debt balance. There are also other credit card options on the market that offer 5% back on certain categories if you’re trying to find the highest cash back rates for credit cards.