Upgrade Cash Rewards Visa® review

While there are many credit cards that promise you savings on interest through 0% introductory APRs or a low regular interest rate, the new Upgrade Card offers an innovative feature that may be the ultimate means of minimizing your interest payments: automatic installment plans.

The card automatically puts your balance into an installment plan with a fixed monthly payment. By obligating you to pay off your balance within a 12- to 60-month period (depending on your terms), the Upgrade Card may save you from the temptation of underpaying your balance and the ballooning balance that often results with cards that only require a minimum payment.

The Upgrade Cash Rewards comes with a unique cash back rewards program that incentivizes repayment, offering unlimited 1.5% cash back on card purchases every time you make a payment. This card also offers a $200 bonus after opening a Rewards Checking Plus account and making 3 debit card transactions*.

See related: Guide to the Upgrade Card

Put your balance into a manageable installment plan

Here’s how the Upgrade Card works: Upon signing up for the card, you’re offered a credit line with installment terms of 12 to 60 months, depending on your credit score. You can then use the card to make purchases as you would with a regular credit card.

At the end of the month, your balance goes into an installment plan with a fixed payment amount. With predictable payments and a plan to pay down your balance, the card puts you on a path to pay off your balance much faster than a traditional credit card.

On Upgrade’s website, they offer the following comparison to show how significant the savings can be. With a 24-month installment plan with the Upgrade card, a cardholder with an 18% APR would pay a little over $2,000 in interest in two years on a $10,000 balance. Meanwhile, a cardholder making the minimum payment on a traditional credit card with the same APR would pay more than $14,000 in interest and would take 28 years to pay off the same balance:

Interest paid with Upgrade Card vs. traditional credit card

The chart below shows the difference in interest paid and time to payoff on a $10,000 balance with the Upgrade Card versus a traditional credit card by a user making a credit card’s monthly minimum payment (assumes an “interest + 1%” minimum payment and an interest rate of 18%, which is close to the average credit card APR).

Low regular APR (for many cardholders)

Another great benefit of the Upgrade card is its low regular APR. For cardholders with excellent credit, the card charges an APR of merely 14.99%. On the downside, cardholders on the low end of the credit spectrum will need to watch out because the card’s APR also ranges as high as 29.99%.

No penalty fees of any kind

Besides its low interest rate, the Upgrade card helps you keep costs in check by not bombarding you with unexpected fees. The card doesn’t charge an annual fee or penalty fee.

Easy alternative to balance transfers

While the Upgrade Card does not allow balance transfers, there is an easy workaround if you want to take advantage of its installment payment model to chip away at existing debt: You can simply make a draw from your account online and have the funds sent directly to your bank account, then use them to pay off your existing credit card balance.  This could be a great option if you don’t think you’ll be able to pay off your balance during a credit card’s 0% introductory APR period for balance transfers.

See related: What is a balance transfer and is it a good idea? 

Earn rewards for card payments

Though the Upgrade Card is primarily designed to help cardholders finance purchases while keeping interest payments under control, the card also offers a unique cash back rewards program that incentivizes repayment.

You’ll earn unlimited 1.5% cash back on card purchases every time you make a payment. While this is not the highest flat cash back rate on the market, it’s better than you’ll find on many low interest or credit-building cards, since the focus of those cards is not usually on earning rewards.

While any cash back you earn may be far outweighed by interest charges, getting 1.5% back on purchases is certainly a welcome perk.

How does the Upgrade Card compare to other low interest cards?

While the Upgrade Card’s installment payment model could make it easier for you to pay off your balance quickly, you could still pay a significant amount in interest, especially if you’re offered the card’s high-end APR. While traditional credit cards can’t compete with the Upgrade Card’s low-end APR, many offer a long 0% introductory period that can give you months to chip away at your balance without paying any interest. Here’s a quick look at some of our favorite cards that carry relatively low APRs and 0% intro APR offers:

Chase Slate Edge℠	BankAmericard® credit card	Citi® Diamond Preferred® Card
Regular APR 20.49% - 29.24% Variable	Regular APR 16.24% - 26.24% Variable APR on purchases and balance transfers	Regular APR 17.74% - 28.49% (Variable)
Introductory APR (new purchases) 0% for 18 months (20.49% - 29.24% Variable thereafter)	Introductory APR (new purchases) 21 billing cycles	Introductory APR (new purchases) 0% for 12 months (17.74% - 28.49% (Variable) thereafter)
Introductory APR (balance transfers) 0% for 18 months (20.49% - 29.24% Variable thereafter)	Introductory APR (balance transfers) 21 billing cycles on balance transfers made within the first 60 days	Introductory APR (balance transfers) 0% for 21 months on transfers completed within the first 4 months (17.74% - 28.49% (Variable) thereafter)
Fees and penalties No annual fee Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, (5% or $5 thereafter, whichever is greater)	Fees and penalties No annual fee A 3% intro balance transfer fee applies for 60 days from account opening, then 4%.	Fees and penalties No annual fee 5% or $5 balance transfer fee (whichever is higher)
Other things to know No rewards program Includes free credit score, fraud protection and purchase protection	Other things to know No rewards program Earn cash back with BankAmeriDeals card-linked offer program Includes Fico® Score for free and credit education, zero fraud liability and overdraft protection (if you link an eligible Bank of America checking account to your credit card)	Other things to know No rewards program You can apply for a Citi Flex Plan to borrow against your available credit limit at a fixed rate Includes extended warranty, personal concierge service, purchase protection, Citi Entertainment and Citi Easy Deals

Chase Slate Edge

Along with its 0% intro APR for 18 months on both new purchases and balance transfers (20.49%-29.24% variable thereafter), The Chase Slate shines thanks to the unique opportunity to lower your interest rate by 2% each year (you can automatically be considered for an APR reduction when you pay on time, and spend at least $1000 on your card by your next account anniversary). If you are assigned a higher interest rate, this could potentially save you hundreds of dollars if you tend to carry a balance.

Citi Diamond Preferred Card

With one of the longest introductory offers on balance transfers available, this card could be a good choice if you need a lot of time to pay down debt. It charges a balance transfer fee of 5% or $5 (whichever is higher), so you’ll have to do the math to see which option (balance transfer fee or shorter intro APR period) makes sense for you. If you don’t need to transfer a balance and just want to finance a larger purchase, this card is a great option, offering 12 months of introductory 0% interest on new purchases, then 17.74% - 28.49% (Variable). If you’re confident in your ability to pay off your new purchases within a year, you could save a significant amount in interest compared to the Upgrade Card.

See related: Best credit cards with no balance transfer fee

Why get the Upgrade Card?

• You have a hard time staying on top of monthly payments.
• You want the convenience of paying with credit without the risk of your balance getting out of control.
• You want to finance a purchase with a low interest rate.

How to use the Upgrade Card?

• Use the card online or at retailers – anywhere Visa is accepted.
• Set your installment payments to automatically debit from your bank account, for the ultimate low maintenance.
• Prepay your account at any time with no penalty.

Is the Upgrade Card worth it?

For cardholders who have a difficult time keeping credit card balances under control or worry about the risks of opening a credit card, the Upgrade Card is an excellent option for financing purchases while keeping payments manageable. It also offers a unique cash back rewards scheme that should give you an extra nudge to make your payments on time.

Our reviews and best card recommendations are based on an objective rating process and are not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy

*Earn a $200 bonus after you open & fund a Rewards Checking Plus account & make 3 debit card transactions within 60 days. If you previously opened a checking account through Upgrade or do not do so as part of this process, you are not eligible. Payout made within 60 days of meeting the conditions.