Rewards enthusiasts, we know you love your Chase Sapphire credit card. We also know you love hopping on new cards with excellent perks, and now that Uber has jumped into the credit card world, you’re probably wondering if they’re worth your time (and the hard pull on your credit report ).
Between boycotts and scandals, it hasn’t been the best year for Uber, so it’s a bold move to break into the credit card rewards game. Here’s how they’re enticing customers with their new co-branded Visa card, which launched November 2nd:
“The most notable benefit is the 4% rewards rate for dining—we don’t usually see the dining category with such a high rewards rate,” Kimberly Palmer, a credit cards expert at NerdWallet, told us.
Granted, the Chase Sapphire Reserve offers an “effective rewards rate of 4.5%,” according to NerdWallet, and that’s a tough one to beat. But the Reserve also comes with a $450 annual fee (albeit with a $300 annual travel credit, which makes it more like $150). The Uber Visa does not come with an annual fee at all, though, and you can redeem your points for Uber credits, cash back, or gift cards. (You can apply online here).
“In general, when we see cards with generous rewards like this, they often come with a fee, but this one doesn’t,” Palmer said. “The card also gives you a $50 for subscriptions like Netflix and Spotify after you meet a spending threshold after the first year - if you are paying the membership fee anyway, then you’ll benefit from using this card to pay for it,” she added.
There’s also a sign-up bonus. You can earn 10,000 points (which is basically $100), if you spend $500 within the first 90 days. Like any good rewards card, the Uber Visa also doesn’t come with foreign transaction fees.
There are restrictions you should be aware of, though. According to NerdWallet:
- To redeem for Uber credits, you need a minimum of 500 points (for $5)
- Cardholders can redeem no more than $500 per day in Uber credits
- Mobile phone insurance is limited to $600 for damage or theft, and you must pay your mobile phone bill with the Uber Visa
- To receive the $50 online subscription credit each year, you must charge at least $5,000 on your card annually
Of course, this all assumes you’re not still boycotting Uber . Earlier this year, over 200,000 customers deleted the app after the company undermined the New York Taxi Workers Alliance’s strike against the Muslim “travel” ban , which ultimately led to the departure of Uber’s CEO. It’s certainly not the only bad press about Uber in recent years (and as Jezebel points out , many of Uber’s issues are issues Lyft shares as well). It seems they’re working to turn around their image, though, and perhaps diving into the rewards game is part of that process. Practically speaking, the card does seem to offer decent rewards for customers.
“The only cost to really consider is the opportunity cost of the other credit cards you could be using instead,” Palmer said. “If your spending is better matched with a different card, then you could be better off elsewhere. But if you are a big Uber user who loves to eat at restaurants and Uber EATS deliveries, there’s not much downside.”
We’d be remiss not to point out our usual disclaimer, too: use your rewards credit card responsibly . Otherwise, you’re just racking up debt. And that’s not very rewarding.