ben hedges: venmo credit card review: is the cashback worth it? 3%, 2%, 1% rewards explained

Check out MaxRewards: USE CODE: shifu Credit Shifu Wallets: Like Credit Shifu on FACEBOOK: Hey credit warriors, a few months ago we covered the launch of the new Venmo credit card. At that time the card was only available to select, targeted users of the Venmo app who had had their account open for more than 30 days. But now Venmo has opened this card up to everyone. To jog your memory here is a clip from my video where I completely trash their marketing. But anyway, this card could be pretty cool for some people, so I’ll give you a quick run down of this card for those who are interested. Rewards are earned in a 3,2,1 system where you earn 3% cash back on you your highest spending category, 2 percent on your second highest and 1% on everything else. The categories are as follows: Grocery Bills & Utilities Health & Beauty Gas Entertainment Dining & Nightlife Transportation Travel So you can see they cover all the usual categories that major credit cards cover and a few unusual ones like bills and utilities. But there is a catch, the 3% and 2% categories are limited to $10,000 in spending per year. So the maximum you could earn would be $300 in cash back from those categories, if you used the card for one category and that became your three percent category. Then it goes down to 1% and that is unlimited. Now this may be a limitation but for some people it wont be. More on that later. The card is personalized in that you can pick the color and it has your Venmo QR code printed on the surface, which is convenient since if you whip out your card to pay the bill at a restaurant and you have a few people there with you, they can just scan the code and send you some money on venmo to cover their portion. You can keep track of all your spending and in which categories you are spending from the Venmo app and it looks like they have done a pretty good job at designing the interface. On the fees front there is no annual fee and also no foreign transaction fees. The card is a visa so there is higher acceptance than American Express for example, especially abroad. Now who would the Venmo card be good for? Well because of the low limit on the spending in the 3% and 2% categories, just $10,000 per year, I would say low spenders. I think this card would be especially attractive to college students and young people who are just starting out in their first job earning reasonably low salaries. If you are earning say, $25,000 per year, after you take out rent, and other things you typically can’t put on a credit card, you may not have much more than $10,000 spending to put on the Venmo card. So the limit really may not be an issue for you. These types of people also tend to split checks more often, I know I have been there, earning close to nothing living in New York city, every dollar counts. So I think the QR code on the card and link with your venmo account would be really useful. Or someone who is going to get this card and literally just use it for one category and maybe even though they are a high spender, their spending in that one category is under $10,000 a year. Categories like Bills and Utilities, Health and Beauty and Entertainment, don’t have as many choices for high cash back earning cards as some of the more commonly supported categories like grocery, dining and travel, where you can easily earn 4 or 5% or more if you have the right strategy. SONG FROM OUTRO Track: Halcyon & Valentina Franco - Runaway (Heuse Remix) [NCS Release] Music provided by NoCopyrightSounds. Watch: youtu.be/5bj44xI2oWw Free Download / Stream: ncs.io/RunawayHeuseRemix NOTE: The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Advertiser Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.