It’s here! The all-new Uber Visa Credit Card from Barclays. If you’re an Uber fan, this new Visa credit card might be one of the best credit cards you can own as it earns up to 4% rewards on every purchase. You can get your hands on this new card on November 2, 2017. Until then, let’s find out what the Uber credit card has to offer and if you should apply for it.
When Does The Uber Credit Card Launch?
The Uber Visa Card launches November 2, 2017 when you can apply for the card online or within the Uber app. It is a co-branded credit card issued by Barclaycard. It’s also important to note that the Uber credit card has two additional perks:
- No annual fee
- No foreign transaction fee
Being a truly fee-free card can make this a great option for the young, cash-strapped Uber rider that takes Uber to work or the club on a regular basis, or for a traveler that wants a simple secondary credit card. Since you will never pay a foreign transaction fee, you know your international Uber rides will cost exactly what the uber app tells you when you book the ride.
Barclaycard and Uber are also offering a $100 sign-up bonus after spending $500 in your first 90 days.
Tiered 4-3-2-1 Purchase Rewards
Here’s another reason you might like the all-new Uber Visa Credit Card. It lets you earn up to 4% on every purchase.
Here’s what you can expect to earn on every card purchase:
- 4% back on restaurants, takeout and bars, and UberEATS
- 3% back on airfare, hotels, and vacation home rentals (i.e. Airbnb and VRBO)
- 2% back on online purchases, Uber purchases, video and music streaming services
- 1% back on everything else
The Uber Visa does an excellent job at awarding bonus cash for your typical purchases. For the most part, you will be able to earn at least 2% on most purchases if you primarily shop online, ride Uber, or go out to eat.
You would have thought that Uber rides would have been lumped into the 4% cash back as well, but, 2% is still respectable. As dining can be more expensive than your typical Uber ride, this is pretty the better choice. And, the Uber card is one of the very few cards to offer 4% back on restaurant purchases.
Redeeming Your Purchase Rewards
Now that we know how much you can earn with each Uber card purchase, how easy is it to redeem your rewards?
Uber offers a few different redemption options including:
- Uber credits
- Cash back
- Gift cards
All rewards can be redeemed within the Uber app at any time. The tiered 4-3-2-1 purchase rewards are very lucrative and can make it extremely easy to never pay for an Uber ride again with the Uber credits.
But, sometimes cash or gift cards (the next best alternative) is the better option for the increased flexibility. If the exchange rate makes each reward point worth less the one-cent each (1,000 points=$99 cash back or less) this might not be a good deal.
Additional Uber Credit Card Benefits
With most no-fee credit cards, the perks usually end with the purchase rewards. That’s not necessarily the case with the Uber card. They actually offer a few benefits that the average cardholder can use and enjoy.
Mobile Phone Insurance
Replacing a phone, especially if it’s still under contract, isn’t cheap. The Uber card will reimburse up to $600 in damages and theft when you pay your cell phone bill with the Uber card in addition to earning 1% back on your normal monthly bill. If you plan on , you might decide to add this card to the wallet as well.
$50 Online Streaming Credit
Once you spend more than $5,000 a year in card purchases (regardless of spending category), you will receive an annual $50 statement credit for online subscription services. The credit can be used on any video or music subscription that earns 2% back. So, you can get your next five months of Netflix free once you receive the credit!
Exclusive Access to Local Events
If you have always dreamed of being on “the list” and no longer being turned away at the door for special events, Uber cardholders will receive exclusive invitations to local events within the Uber app. Other rewards cards offer similar invite-only opportunities such as getting a ticket to the Emmys and even having a chance to walk the red carpet, but, it’s a nice touch for a no-fee card to offer.
Is the Uber Visa Card Worth It?
There’s a lot to like about the all-new Uber credit card. It’s completely fee-free, let’s you earn up to 4% back on every purchase, and even offers $600 in cell phone insurance. Unless you constantly ride Uber and can redeem your rewards points for Uber credits on a consistent basis, there are likely going to be better options to consider.
Chase Sapphire Preferred
The main draw for the Uber Visa Card is its purchase rewards. While other credit cards are also “upping the ante” and boosting their purchase rewards, your redemption options also need to be lucrative. What good is a mountain of points if you can’t redeem them, or if you can get more value from other redemptions elsewhere?
If you want flexibility, you should consider the Chase Sapphire Preferred. You earn 2x points on every travel and dining purchase (1 point for everything else) and your points can be redeemed for award travel on the Chase travel portal for 1.25 cents each (10,000 points=$125) where most other credit cards only value a point at one cent or less (10,000 poins=$100).
You also have the option of transferring your points on a 1:1 basis to your favorite airline or hotel travel program where you can redeem them for free plane tickets and hotel nights. This is something you simply can’t do with the Uber credit card.
American Express Platinum
The American Express Platinum is a premium rewards card that happens to offer $200 in Uber rides credits each year. The real value in the Platinum Card is it’s frequent flyer rewards. Since ground transportation (Uber, taxis, rental cars) is such a small travel expense compared to airfare or lodging, this card maximizes the value of your more expensive travel purchases.
You will earn 5x points on airfare and hotel purchases (vs 4% with the Uber credit card), an annual $200 air travel credit that pays for your baggage fees and in-flight purchases, and complimentary access to over 1,000 airport lounges all across the globe. And, you also have the option to transfer your points directly to almost any airline alliance on a 1:1 basis for award flights.
If you travel on a consistent basis, especially by air, this card will easily pay for itself every single year.
Summary of the New Uber Credit Card from Barclays
Regular Uber customers should definitely consider the all-new Uber Visa Card. It’s a great fee-free option with lucrative purchase rewards that make it possible to get free Uber rides for life. But, at the end of the day, it’s a rewards card for a ride-sharing company and travelers who place more value on airline and hotel rewards will be better served with a different travel rewards credit card.
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