Ride-sharing behemoth Uber has partnered with Barclaycard to offer a new co-branded Visa credit card that's rich with rewards. Designed to entice millennial consumers, the card—which does not charge an annual fee—comes with a slew of perks aimed at users who spend a lot of money on dining, travel and online shopping. (Research indicates that millennials eat out, on average, five times a week.)
One of the biggest advantages of the Uber Visa Card is its lack of annual fee, coupled with rewards rates that are on par with more elite cards that do levy a fee. So if you're looking for a no-fee card with a generous rewards structure, Uber's new card ranks among the best.
Uber credit card benefits
Here's how the card's rewards structure works:
- 4% (or 4 points for every dollar spent) back on purchases made at restaurants, fast food joints, and bars. That includes the UberEATS service, which pairs Uber drivers with restaurants to deliver food ordered online.
- 3% back on hotels, airfare, travel agency purchases and even home share exchanges like Airbnb.
- 2% back on online purchases from retailers, video, and music streaming services, certain online services like TaskRabbit and Angie's List, digital purchases from places like iTunes, and Uber purchases and rides themselves.
- 1% back on all other purchases not eligible in the above categories.
- $50 credit to apply for online subscription services like Spotify, Netflix or Amazon Prime once you spend $5,000 on the card in one year.
- $600 in supplemental mobile phone insurance (on both damage and theft), as long as you use the card to pay your wireless phone bill on a monthly basis.
- No foreign transaction fees.
- Invites to "exclusive events and offers in select U.S. cities."
- Sign-up bonus: You will earn 10,000 points, redeemable for $100 after you spend $500 on total purchases in the first 90 days of owning the card.
How to redeem uber card rewards
The card's rewards system allows you to accrue points, which can then be redeemed for Uber credits, gift cards or statement credits (the last option is the closest to cash back).
Users can make redemptions through their Barclaycard app or online account dashboard, but credits can also be redeemed directly from the Uber app to pay for rides. (Note that cardholders can only redeem up to $500 worth of points per day in Uber ride credits.)
There is a minimum rate for reward redemption, as well: Uber credits must start at 500 points, or $5, while all other redemptions start at 2,500 points for $25. (See also: Find Rewards Credit Cards)
Should you apply for the Uber Visa Credit Card?
If you spend a lot of money on dining out, you will have a tough time finding a better rewards rate than 4% back. The 3% travel rewards rate is also among the best in its class. (Though you'll get a better rate on Uber rides themselves with the Chase Sapphire Reserve card, which gives you 3 points per dollar spent, that card also comes with a hefty $450 annual fee.)
To maximize your rewards earnings, you may still want to pair this card with another no-fee rewards card that offers a flat cashback rate on all purchases.
However, users should note that, as with all rewards credit cards, the card only makes sense if you do not carry a balance from month to month. If you do, any rewards value will be wiped out by the interest you will accrue—users will be charged 15.99%, 21.74% or 24.74% APR, depending on their credit history.
For more information and to apply, visit ubervisacard.com.
Editor's note: An earlier version of this story incorrectly stated the offer details for Citi Double Cash card. Experian regrets the error; corrected Jan. 18, 2018.
Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication.