The Upgrade Card can be a great solution if you’re looking for the fixed monthly payments of a personal loan but the spending flexibility and potential rewards of a credit card. Each time you tap into your line of credit, you get a fixed APR and a payoff period of up to five years. It makes repayments easy to budget for while letting you spend when and where you need to.
But if you want to consolidate your debt, look elsewhere: You might end up paying more than if you went with a traditional debt consolidation loan or balance transfer credit card.
The Upgrade Card is a line of credit that operates like a credit card. Use the card online or at retail locations where Visa is accepted. You can also borrow funds and send them to your bank account, though you might pay an ACH transfer fee.
However you choose to use the line of credit, you’re limited to the maximum amount you’re approved for — between $500 and $25,000.
There are no draw fees or prepayment penalties, which helps cut costs. Each draw, or group of draws, turns into a fixed-term loan with fixed monthly repayments — similar to a personal loan, and making it easy to budget. Your interest rate, credit limit and term length depend on several factors that include your credit score, credit history and loan amount.
Pay down your balance by making equal payments each month debited directly from your bank account.
All five Upgrade cards come with no annual fee and have a purchase APR of 14.99% to 29.99% fixed.
| Name | Rewards | Best for |
|---|---|---|
| Cash Rewards | 1.5% cash back on payments | Those who want a flat reward program |
| Triple Cash Rewards |
| Big spenders at home, auto and health retailers like Home Depot, Tractor Supply Co. and Walgreens |
| Life Rewards |
| Category spenders on gas, grocery, health and streaming and utilities like Shell, Kroger and Netflix |
| Upgrade OneCard |
| Everyday spenders; categories include drugstores, dining and utilities like CVS Pharmacy and Taco Bell |
| Upgrade Card | None | Those who want to improve their credit |
The Upgrade Card is in a class of its own, providing the flexibility of a credit card but the predictability of a personal loan. This hybrid option makes budgeting easier and expands your spending options.
It also stands out for:
The Upgrade card comes with a few drawbacks:
Kinda — the Upgrade is a hybrid of a credit card and a personal loan. While you can spend it like a credit card, and it gives you access to funds like a credit card’s cash advance, its payment terms are different from a traditional credit card.
Unlike a credit card’s variable interest rate that can increase with the prime rate, the Upgrade card uses an installment loan payment system. That means you pay down your balance at a fixed rate and term, like a personal loan. Equal monthly installments make it easier to budget than with a credit card bill.
All cards require that you meet the following criteria:
The application process also requires financial and personal documentation that includes:
Your credit score may also determine which card type you qualify for.
| Card Type | Credit score | FICO score |
|---|---|---|
| Good to excellent | 670 to 850 |
| Upgrade Card | Fair to excellent | 580 to 850 |
It takes minutes to see if you qualify for an Upgrade Card. The application will ask you for basic information and permission to do a hard pull on your credit history. After you submit your application, including uploading any requested documentation, you should receive a decision within minutes.
If you’re approved, you’ll have instant access to your credit line. Sign in to your online account and create a virtual card to use it immediately, wait for the physical card to arrive or have the funds sent to your bank account. Transfers can take one to four business days to complete.
Get more out of your Upgrade card by doing a little bit of legwork before applying, including:
If a credit card–personal-loan hybrid doesn’t fit the bill, consider a traditional credit card or a personal loan.
Shop around for a traditional cashback credit card that rewards you for your purchases.
Keep in mind that most credit cards have high APRs. If you’re able to, pay your balance before the due date to maximize your rewards and avoid accumulating interest.
If a fixed monthly payment catches your eye, but you don’t need the line of credit features, a low interest rate personal loan may be a better option. Keep in mind that personal loans may have origination fees, typically ranging from 1% to 8% of the loan amount.
And since it’s considered closed-end credit, you can’t make multiple draws, borrowing money as you need it. Instead, banks approve one loan amount, and you’ll make payments until everything is paid back.
Plus, how many credit cards should you have?
Credit cards can do more harm than good if you’re not careful.
How much are people spending on Christmas on average, how many gifts are they buying and will they be cutting back on spending in 2023?
Americans are forecast to spend $1.1 billion on Thanksgiving turkeys in 2023.
The 6 best cards that charge zero interest include Step Black Card, Chime Credit Builder, Varo Believe, Cleo Credit Builder and more.
If you’re looking for a credit card but have a bad credit rating, use this guide to compare suitable credit cards and regain control over your finances.
Shopping online is very simple and convenient, yet can seem risky for cardholders. Follow this guide and make sure to keep your personal details safe too.
Understand how your credit card CCV or CVC number works and how it’s used to protect your credit card.
Credit cards come with both benefits and risks, so use our list of pros and cons to weigh up your options.
Canceling a credit card can be a good idea, especially if you’re not using it any longer, if it’s been stolen or if you’re in the market for a new card. It’s important you do it the right way, though, or you risk damaging your credit file or paying costs from your existing account.