Upgrade, a self-described neobank that offers credit to consumers, has launched Upgrade Card’s first cash back rewards program.
According to a release, the new program earns users unlimited 1.5% cash back on every purchase they make with the card. The rewards get credited as cardholders make their monthly balance payments.
“Credit card companies typically reward their customers for spending more” said Renaud Laplanche, Upgrade co-founder and CEO. “That’s hardly the most responsible incentive in normal times, and is particularly irresponsible in the current environment. We’re rewarding our customers for doing what’s good for them: paying down their balance.”
Upgrade Card is designed as a lower cost, more responsible alternative to traditional credit cards with no fees. Fixed rates currently start at 6.99% APR. Equal monthly payments intend on promoting greater financial discipline and help users to avoid a credit trap. Monthly charges are combined into installment plans payable over 24 to 60 months.