The Upgrade OneCard — from financial technology company Upgrade — is one of several products within that fintech's suite of credit card/personal loan hybrid offerings. With all of Upgrade’s cards, your credit card balance is automatically converted to an installment plan where you make equal monthly payments at a fixed interest rate.
But the Upgrade OneCard takes it a step further: You can pay off a balance over time with interest, or you can opt to pay off a purchase immediately and not pay interest on that transaction.
Here are five things to know about the Upgrade OneCard.
1. It’s essentially three products in one
The Upgrade OneCard combines the immediate payment of a debit card, the rewards and fraud protection of a credit card, and the fixed monthly payments of a personal loan.
You can use the card to make purchases in stores or online, as you would with a debit or credit card. You get credit card fraud protection, which means your liability is limited if someone uses your card to make unauthorized purchases. You set preferences as to which purchases you want to pay for once the charge appears on your account, as you would with a debit card, and which purchases you want to pay back over time with interest, as you would with a personal loan.
Any purchases you choose to pay back over time will be charged a fixed interest rate for a set period of time. You can find out your assigned APR and loan term length by getting preapproved, without affecting your credit score. Currently, APRs can range from 14.99% to 29.99%. Note that if you don’t have enough money in your linked checking account to cover a purchase, you’ll be automatically enrolled into an installment plan.
» MORE: Credit card vs. debit card: Which is safer online?
2. You can earn up to 3% cash back …
Assuming you meet eligibility requirements (see No. 3 below), you can earn the following rewards with the Upgrade OneCard:
3% cash back on purchases at convenience stores and drugstores, at restaurants and bars (including food delivery) and at gas stations. You’ll also earn 3% back on recurring payments for utilities and monthly subscriptions, which includes phone, cable and streaming services.
2% cash back on all other purchases.
Cash back is earned when you pay off purchases. You can earn up to $500 in 3% cash back rewards per year, after which you’ll earn 2% back on such purchases. To reach that limit, you’d need to spend around $1,388 per month in the 3% categories.
» MORE: Is the Upgrade card legit?
3. … but an Upgrade checking account is required for the top rate
You can link any checking account to make payments on your Upgrade OneCard purchases, but you’ll get more out of the card if you link an active Rewards Checking or Rewards Checking Plus account with Upgrade. An active account is defined as one that receives at least $1,000 in direct deposits per month.
If you do that, you’ll earn the previously mentioned 2% to 3% on all purchases, plus be eligible for a welcome bonus. As of August 2024, the bonus is $200 when you start using a new Rewards Checking Plus account and make three purchases with your Upgrade OneCard or your Rewards Checking Plus debit card within the first 60 days.
If you don’t meet the requirements for an active Rewards Checking or Rewards Checking Plus account, you’ll earn only 1.5% cash back on all purchases, and you won’t be eligible for the bonus.
4. Redeeming rewards is affected by carrying a balance
If you’ve paid for all purchases immediately and don’t have any installment plans, you can redeem your cash-back rewards as a direct deposit into the checking account you have linked to your card. If you’re making monthly payments on an installment plan, your redeemed rewards will go toward the balance owed.
5. You may be able to spend beyond your credit line
During the application process, you’ll be granted a credit line of $500 to $25,000, though most are $25,000 and less. But if you fund your card with a Rewards Checking Plus account and keep a positive balance, you may be granted up to $5,000 more on top of your assigned credit line.
Just note that spending beyond your credit line has to be paid back immediately.
» MORE: How do you get a higher limit on your credit card?
See more from Upgrade
Credit Lines feature Annual Percentage Rates (APRs) of 14.99% - 29.99% and line amounts ranging $500 - $25,000. The lowest rates require Autopay and the majority of the line amounts will be $15,000 or under. For example, a $5,000 transaction with a 36 month term and a 19.99% APR has a required monthly payment of $187.90. Optional ACH transfers to your bank account, balance transfers, ATM withdrawals (if available), and foreign transactions are subject to applicable fees that, if incurred, will increase your finance charge and APR. Late fees and insufficient funds fees may apply. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors. The Upgrade Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to an approved amount. As you repay your balance, additional credit may become available to you up to an approved amount subject to meeting our credit requirements, but your line will not replenish automatically.
Upgrade's other offerings
Upgrade also offers the following cards:
The Upgrade Select Visa®, which earns no rewards and has an annual fee of $39.
The Upgrade Secured OneCard, which has the same benefits and rewards structure as the standard OneCard, reviewed above. Your credit line is secured by the balance in an Upgrade deposit account (up to $5,000). This card is not available for direct application, but qualified applicants can apply for the card when they open an Upgrade Rewards Checking Plus account.
The Upgrade Life Rewards Card, which lets you earn 3% cash back in a variety of categories including gas stations, grocery stores and more. Non-bonus-category spending earns 1% back.
The Upgrade Cash Rewards Visa®, which earns 1.5% cash back on all purchases. Cash back will be applied to the next month’s balance on your card.
The Upgrade Triple Cash Rewards Visa®, which earns 3% cash back on home, auto and health purchases, and 1% back on everything else. Cash back will be applied to the next month’s balance on your card.
» LEARN: Which Upgrade card is right for you?
See more from Upgrade
Credit Lines opened through Upgrade on the Upgrade Select Visa® feature Annual Percentage Rates (APRs) of 21.96% - 29.99% and line amounts ranging $500 - $2,000. Optional ACH transfers to your bank account, balance transfers, and foreign transactions are subject to applicable fees that, if incurred, will increase your finance charge and APR. Late fees and insufficient funds fees may apply. The lowest rates require Autopay and the majority of the line amounts will be $1,500 or under. For example, a $1,000 transaction with a 36 month term and a 22.00% APR has a required monthly payment of $38.68. The APR on your transaction may be higher or lower. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors. The Upgrade Card is unique in that it allows you to obtain a series of closed-end loans which you may access through transactions such as card purchases up to the approved line amount. As you repay your balance, additional credit may become available to you up to the approved line amount subject to meeting our credit requirements, but your line will not replenish automatically.
Card image courtesy of Upgrade
