Credit Card Rewards Program Upgrade

The fintech company Upgrade has achieved considerable success with its core offerings – an affordable credit card and personal loan options. The company is enhancing the appeal of its credit card by introducing a rewards component.

Holders of the Upgrade Card will now receive 1.5% cash back on every purchase made using the card – this applies to all spending, without limitations to specific categories, participating merchants, or complex point accrual systems. It’s a simple and unlimited cash back benefit.

The company’s goal is to help customers reduce their outstanding debt. Therefore, Upgrade is designed to incentivize balance payments rather than increased spending. Rewards are credited to your account when you make your regular monthly payments.

Upgrade aims to deliver a credit card that prioritizes consumer benefits, and CEO Renaud Laplanche emphasizes that this begins with competitive interest rates. Instead of the typical starting rate of 12% to 13%, Upgrade offers an initial rate of 6.99%.

To help users avoid accumulating long-term credit card debt, Upgrade allows you to consolidate monthly charges into manageable installment plans with repayment terms ranging from 24 to 60 months. These plans feature fixed interest rates and consistent monthly payments. Furthermore, you have the flexibility to make additional payments at any time without incurring penalties.

Upon approval, you’ll gain immediate access to a virtual card, followed by a physical Visa card delivered within a few days. Credit lines range from $500 to $20,000.

Throughout the last three years, Upgrade has extended over $3.5 billion in credit. Currently, the company is experiencing an annual recurring revenue rate of $125 million and is operating profitably.

Notably, Upgrade identifies as a neobank. While numerous neobanks, including Chime, Revolut, N26, and Nubank, have found success, most concentrate on checking accounts and debit cards. Their revenue streams typically come from interchange fees, premium subscription services including insurance, and referral programs.

Upgrade initially differentiated itself by concentrating on credit products, a sector that generates substantial revenue. The company is now expanding its offerings to include additional banking services, with the intention of becoming a comprehensive alternative to conventional retail banking. New products are expected to be released in the near future.