Last updated on December 18th, 2020
Covid-19, or coronavirus, is causing families worldwide to reconsider their financial plans. Because of the uneasy nature of the times, more and more people are turning to debt reconsolidation. And, with the average U.S. credit card debt over $8,000, shoring up your finances has never been more important. While balance transfer credit cards are a staple of debt reduction, a new option is rapidly gaining popularity. Known as the Upgrade Visa® Card with Cash Rewards, it offers the low rates of a personal loan plus the flexibility of a traditional credit card. What is the Upgrade Visa® Card with Cash Rewards, and should you consider applying to quickly eliminate credit card debt?
The Trouble with Balance Transfer Cards
The recent economic volatility has many Americans considering getting their finances in order. Given that the Covid-19 pandemic has no end in sight, eliminating debt has never made more sense. One of the most popular options for paying off debts is balance transfer credit cards.
Balance transfer credit cards work by providing an introductory interest rate and low fees for conducting transfers. Typically, this special rate is 0% intro APR for between 6 to 18 months. Once this bonus period ends, balance transfer cards offer a “low” APR of around 14% – though some credit union credit cards come with rates below 10%.
While the APR on a balance transfer credit card is significantly lower than interest rates on other types of cards, it is still high. Paying off a balance requires patience and the correct tools for the job, so using a card that charges 14% interest just isn’t practical.
Upgrade the Way You Eliminate Credit Card Debt
Fortunately, Sutton Bank understands the problems that arise from paying off balances via a balance transfer card. The bank, along with fintech pioneers Upgrade, created a new type of credit product. Known as the Upgrade Visa® Card with Cash Rewards, it is a unique approach to paying down balances and eliminating fees of any kind.
Upgrade Visa® Card with Cash Rewards
- Regular Purchase APR 8.99%-29.99% variable based on creditworthiness and the Prime Rate
- Annual Fee None
Credit NeededBestCards.com uses a variation of FICO Score 8, which is one of many different types of credit scores. A financial institution may use a different score when deciding whether to approve you for a credit card.Excellent , Good , Fair
- Processing Network Visa
- Earn a $200 bonus on your Upgrade Card after opening a Rewards Checking account and making 3 debit card transactions*
- Earn 1.5% unlimited cash back on card purchases every time you make a payment
- Combine the flexibility of a card with the low cost and predictability of a loan
- $0 fees - $0 annual fee, $0 activation fees, $0 maintenance fees
- No touch payments with contactless technology built in
- See if you qualify in minutes without hurting your credit score
- Access to a virtual card while you wait for your card to arrive in the mail
- Great for large purchases with predictable payments you can budget for
- Mobile app to access your account anytime, anywhere
- Enjoy peace of mind with $0 Fraud liability
- *To qualify for the $200 welcome bonus, you must open and fund a new Rewards Checking account and make 3 debit card transactions within 60 days of your Upgrade Card account opening. The bonus will be applied as a one-time credit to your account and will not otherwise reduce the amount of your regular monthly payments. The bonus credit will be posted to your Upgrade Card as a rewards credit within 1-2 billing periods following the third debit card transaction on your Rewards Checking account. Your Upgrade Card must be in good standing to receive a bonus.
- Regular Purchase APR: 8.99%-29.99% variable based on creditworthiness and the Prime Rate
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The Upgrade Card combines the purchasing power of a Visa credit card with the excellent rates of a personal bank loan. New accounts get a credit line of up to $20,000, with installment repayment plans of 12, 24, 36, or 60 months. Cardholders can use the Upgrade Card like a credit card or transfer funds over to existing accounts to pay off their high-interest balances.
The beauty of the Upgrade Card is that existing balances are paid off using the credit line, then paid back over a set period – all at a rate significantly lower than any balance transfer credit card. The APR with the Upgrade Card starts as low as 8.99% – almost 6% lower than the average balance transfer card. This low rate and set payment structure are proven to help individuals pay down their faster and more effectively than with traditional credit card products.
Pay Down Balances Faster – and Cheaper
The following shows how effective Upgrade is versus traditional credit cards. This table shows how much a user pays on a $10,000 balance when making just the monthly minimum payments:
Who Can Benefit Most from the Upgrade Card?
Because of the low-interest rates and set repayment periods, the Upgrade Card is the perfect option for those who struggle to make payments with their current credit cards. Paying down balances using tricks like the snowball or debt avalanche method requires planning and dedication. The Upgrade Card, on the other hand, requires cardholders to make their monthly minimum payment. That’s it.
No Fees Means No Worries
Even better, the Upgrade Card charges no fees of any kind. That means NO
- Annual fees
- Monthly fees
- Late fees
- Penalty APR
- Over-the-limit fees
Have a Balance You Want to Pay Down? What’s Your Best Option?
Many individuals enjoy the introductory bonuses that come from balance transfer cards. After all, 0% intro APR is very enticing. Once that intro period ends, however, you’re left with interest rates in the teens. Still, for those who have a smaller balance to pay down a balance transfer credit card makes perfect sense.
If you are like the average American household, however, six months of 0% APR won’t help you much. That’s because the average American family has over $8,000 of credit card debt, according to Debt.org. For those with substantial debts, the Upgrade Card provides a simple, efficient, and inexpensive way to quickly pay down balances and eliminate credit card debt. And, with no fees, it’s a solution that not only saves you money but won’t cost you anything to get either. Now that’s a win-win!