Should i get a venmo credit card

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Earlier this year, Venmo introduced its first-ever credit card to eligible Venmo customers to be used in tandem with the popular person-to-person payment platform. The Venmo Credit Card is a competitive addition to the list of cash back cards available and includes perks such as no annual fee, no foreign transaction fees (see rates and fees) and a creative way to earn up to 3% cash back rewards based on your eligible top spend categories (see rewards terms).

Today, I’ll highlight some of the things that make this card different from other cash back cards with five reasons to add the Venmo Credit Card to your wallet.

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No annual fee

I already mentioned the card's no annual fee, but it's worth highlighting again as a primary reason to get this card. If you’re considering adding a cash-back card to your portfolio, you should absolutely consider the Venmo Credit Card. Remember that a no-annual-fee credit card can play a critical role in building your credit history, so this can be a great card to help in that endeavor.

There are also no foreign transaction fees, and travel-related spend has the potential to earn up to 3% cash back. More on that next.

Speaking of spending …

The more you spend, the more you can earn

The card has a tiered 3-2-1 earning structure, meaning that cardholders earn up to 3% cash back on their eligible top spend category, 2% back on their second-highest eligible spend category and 1% back on all other purchases.

Eligible categories include:

• Transportation
• Travel
• Dining and nightlife
• Entertainment
• Health and beauty
• Grocery
• Gas
• Bills and utilities

Note that the card typically caps your 3% and 2% rewards at $10,000 in combined spending each year. However, there’s no cap during the first year your card is open, and even when it does kick in, it’s still higher than some other cash back credit cards in the market (some of which cap rewards in their top categories at $6,000 annually).

Up to 3% cash back on unique categories

The Venmo Credit Card provides a unique opportunity to earn more than the standard 1% cash back on select categories — such as entertainment and health & beauty. Many other cash-back cards earn elevated percentages based on categories such as office supply stores, dining and travel. However, if you happen to spend the most at a cosmetics or beauty supply store using the Venmo Credit Card, you could earn up to 3% cash back — a unique value in the market.

An especially intriguing cash back opportunity lies in the ability to earn additional cash back on bills and utilities — in particular electricity and water bills. If you’re like me, you’ve seen these bills increase significantly due to all of the time being spent at home. The cash back you earn on the Venmo Credit Card could help alleviate some of those monthly expenses.

Additionally, your top categories aren’t set in stone; they change depending on where you spend each month. For example, you might spend more on travel and entertainment one month but then gas and groceries the next. Either way, you always earn up to 3% cash back on your highest spend category.

Related: TPG's Venmo guide for beginners

Your card, your color, your QR code

There is a lot of excitement around cool-looking credit cards these days, and if you don’t have one in your wallet, you might be feeling a little left out. Who wouldn’t want a statement piece to pull out at the register?

The Venmo Credit Card fits the bill, as it comes in five exciting colors and takes personalization to a whole new level by printing each customer’s personal Venmo QR code on the front of the card.

If you’re familiar with the Venmo app, you know that each customer has their own QR code, allowing people to pay them directly by scanning the code with their smartphone. With the Venmo Credit Card, you can also scan the code to activate your card when it arrives in the mail, to split payments among friends who also have Venmo, and to send money to other Venmo users.

These features make the Venmo Credit Card incredibly convenient.

Easy account management

Finally, the Venmo Credit Card is appealing thanks to the easy (and familiar) interface for managing your rewards — all of which happens in the Venmo app.

Adding a new credit card to your wallet can mean learning a new online platform or mobile app for keeping track of your rewards, scheduling payments and otherwise managing your profile. However, there’s a solid chance that you’ve already been using the Venmo app to send or receive money from friends. And the Venmo Credit Card is automatically integrated into the app – you can even split your card purchases right away and use the money your Venmo friends paid you back to pay your credit card bill all from the Venmo app.

Whether you’re splitting a bill with a friend or transferring your cash-back rewards to your linked bank account, you can do it all right in the Venmo app.

Bottom line

The Venmo Credit Card is an exciting new addition to the list of cash-back credit cards currently on the market. The ability to earn up to 3% cash back on the eligible categories where you spend the most every month — and the possibility to earn elevated cash back on expenses like bills & utilities and health & beauty make this card extra special.

It doesn’t hurt that you can also personalize your card and manage your account through a familiar interface. For these reasons, the Venmo Credit Card could be a great option for your wallet in 2021. Click here to learn more.

Please see Terms and Rates for new accounts and the Rewards Program Terms and Conditions for more details.

Featured image by (Photo courtesy of Venmo)

TPG featured card

Intro offer

Earn 80,000 ThankYou® points60,000 points

Recommended Credit

670-850

Excellent, Good

Why We Chose It

The Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet.

Pros

• Earns 3x points on restaurants, supermarkets, gas stations, air travel and hotels.
• $100 annual hotel savings benefit (on single hotel stay bookings of $500 or more, excluding taxes and fees, booked through thankyou.com)
• Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
• World Elite Mastercard benefits, extended warranty, damage and theft protection.

Cons

• $95 annual fee
• Lacks travel protections that other travel rewards cards come with

• For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
• Earn 3 Points per $1 spent at Restaurants and Supermarkets
• Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
• Earn 1 Point per $1 spent on all other purchases
• Annual Hotel Savings Benefit
• 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
• No expiration and no limit to the amount of points you can earn with this card
• No Foreign Transaction Fees on purchases

Rewards Rate

• Intro Offer

  Earn 80,000 ThankYou® points

  60,000 points

• Annual Fee

  $95

• Recommended Credit

  670-850

  Excellent, Good

Why We Chose It

The Citi Premier’s 3 points per dollar spent across a wide range of popular categories is one of the more lucrative offerings in the world of points and miles. The Citi Premier comes with a $95 annual fee and is currently offering a solid sign up bonus of 80,000 points after you spend $4,000 on purchases within the first three months. It also has some valuable transfer partners to make the most of your rewards. Add in access to Citi Entertainment plus a $100 hotel credit for any single-stay hotel booking that exceeds $500 or more, excluding taxes and fees, booked through the Citi travel website, there are few reasons why the Citi Premier should not be in every traveler’s wallet.

Pros

• Earns 3x points on restaurants, supermarkets, gas stations, air travel and hotels.
• $100 annual hotel savings benefit (on single hotel stay bookings of $500 or more, excluding taxes and fees, booked through thankyou.com)
• Points transfer to 16 airline programs, from JetBlue to Virgin Atlantic.
• World Elite Mastercard benefits, extended warranty, damage and theft protection.

Cons

• $95 annual fee
• Lacks travel protections that other travel rewards cards come with

• For a limited time, earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
• Earn 3 Points per $1 spent at Restaurants and Supermarkets
• Earn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels
• Earn 1 Point per $1 spent on all other purchases
• Annual Hotel Savings Benefit
• 80,000 Points are redeemable for $800 in gift cards when redeemed at thankyou.com
• No expiration and no limit to the amount of points you can earn with this card
• No Foreign Transaction Fees on purchases