Is the Uber Visa Card a Millenials Dream Come True? [Updated 2019]
Millenials are known for sharing a love of travel, adventure, entertainment, good food and good drinks. As a fellow millenial, this author shares my demographics love of experiences over things.
Uber and Visa must understand the millenial mindset as well based on the perks they are offering with the Uber Visa card. This card is quite possibly the best rewards card on the market for those with a big restaurant and travel budget.
The lack of an annual fee and very high restaurant and travel rewards rate make the Uber Visa card hands down the best rewards card on the market.
The card offers an industry leading 4% cash back on restaurant spending as well as 3% back on hotels and airfare. In addition, consumers get 2% back on online spending including streaming services like Netflix, Hulu, Amazon and HBO Now as well as iTunes and the Google Play store.
On top of the high rewards rate, the Uber Visa card charges no annual fee, which is worth at least ~$2,400 of annual spending on competitor card Capital One Savor which charges a $99 annual fee.
- Ability to earn 4% cash back on restaurants and bar spending. 3% back on airfare and hotels, 2% back on online purchases including UBER and 1% back on everything else.
- No annual fee ever
- $100 signup bonus if you spend $500 in first 3 months.
- You won't earn points if you don't pay at least the minimum payment each month.
- Less rewards points for groceries than the Capital One Savor card
- Credit score of at least 690 to qualify
- No teaser interest rate for balance transfers
The ability to earn 4% cash back on restaurants, bars, UBER EATS and 3% back on travel are what set this card apart as the best rewards card available today.
The lack of an annual fee on a card with such a great rewards rate is wholly unique in the industry. You would have to spend $2,400-$4,800 a year on other cards to make up for the annual fees they charge.
New cardholders can also earn $100 worth of rewards points by spending $500 in the first three months.
The Uber Visa card has no annual fee, ever.
This is a positive surprise for a card that offers such high rewards rates on spending. You are saving $99 a year compared to the next best rewards card on the market, equal to $2,400-$4,800 of annual spending depending on the rewards rate.
Important Note: The Uber Visa card has strict requirements for you to be eligible to earn rewards points. If you don't pay at least the minimum fee each month you won't earn any points for the following month.
The annual percentage rate (APR), or interest charged, on the Uber Visa card is 17.24%-25.99% on purchases depending on your credit score and a higher than average 27.24% on cash advances.
The interest rates on this card are 1%-2% higher than competing cards, something to keep in mind if you won't be able to pay off your balance on time every month.
The approval requirements are relatively simple. You need to have a good to excellent credit score, in the range of 690-850.
If your score is within 50 points of the low end of that range its probably worth applying anyway as there is a chance you could still be approved.
The Uber Visa card offers some interesting additional perks.
- A one time $50 statement credit toward your online streaming bill if you spend at least $5,000 on the card each year.
- $600 towards replacing a damaged phone as long as you charge your monthly cell phone bill to the card.
WHO SHOULD NOT GET THIS CARD
If consistently paying off your balance in full each month seems like a daunting task, this card is not for you.
The card will not pay out any points if you fail to make the minimum payment due each month or becoming delinquent, usually defined as 3-6 months late on paying off your balance.
A 2% higher interest rate than peers will quickly eat into the money you are saving from not having to pay an annual fee. If you run a balance of only $5,000, that 2% premium will cost the same in interest as you are saving on the annual fee.
Bottom Line: This is a card for generating rewards as you spend, not for saving on interest or paying down debt faster.
ALTERNATIVE CARD: THE CAPITALONE SAVOR CREDIT CARD
The CapitalOne Savor card is the big competitor for the rewards card crown. A few small and two large advantages put the Uber Visa card ahead.
Both cards offer 4% on restaurants, but the Uber card pays 3% for travel while the Savor card only offers 1%. The Savor card, however, offers 2% on groceries compared to the Uber card at 1%.
The two big differences between these cards is the annual fee and signup bonus. The Uber card has no annual fee while the Savor card charges $99 a year starting in year 2. The Savor card pays a $500 singup bonus compared to the Uber card which offers $100.
Bottom Line: The Uber cards lack of an annual fee more than offsets the lower signup bonus and lower grocery rewards rate of the CapitalOne Savor card.
Q: But what about the Chase Sapphire Reserve? Isn't it the best rewards card on the market?
A: The Reserve card remains the best rewards card out there only for big travel spenders. The Uber Visa offers 1% more rewards at restaurants and bars and the same rate on travel while charging you $450-$525 less in annual fees a year. You have to spend $7,500 on travel/food or $23,000 on everything else just to break even on the annual fee. If you don't make at least $120,000 a year before taxes, the Uber Visa is a much better rewards card.
The Uber Visa Credit Card is the best rewards card on the market. A class-leading rewards rate on food and travel coupled with no annual fee can't be beat.
The lack of an annual fee puts this card ahead of our second favorite card, the CapitalOne Savor card. You will save $400 in fees over 5 years which is equal to the $400 higher signup bonus offered by the CapitalOne Savor card.
If you pay your bill off every month and are looking to maximize your cash back rewards, there is really no reason not to sign up for the Uber Visa card.