The Robinhood Gold Card: A New Contender in the Credit Card Arena
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Last updated 04/08/2024 by
SuperMoney TeamEdited by
Summary:
Robinhood introduces the Robinhood Gold Card, blending high cash-back rewards with exclusive membership perks. Offering 3% cash back on all purchases and 5% on travel, this card targets Robinhood loyalists with an appetite for maximizing their earnings. However, it’s tied to a Robinhood Gold membership, presenting a potential cost-benefit dilemma for users. This article explores the card’s features, rewards, and considerations, providing a comprehensive overview for potential cardholders.
Robinhood launched a waitlist for its first credit card, The Robinhood Gold Card. The card will earn a 3% cash back on all purchases and if you jump through a few hoops you can receive a card made of real gold weighing 36 grams. Add to those perks Visa Signature travel and purchase protections, no foreign transaction fees, and the option to add authorized users of any age.
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A closer look at the Robinhood Gold Card
The Robinhood Gold Card, issued by Coastal Community Bank with a Visa Signature label, promises no foreign transaction fees and a range of protections. An option for a 10-karat gold card ups the ante for users meeting certain criteria, adding luxury to its appeal.
Rewards and redemptions
With 3% back on all purchases and 5% on travel booked through Robinhood, the card leads in the cash-back category. It allows various redemption options, emphasizing reinvestment in Robinhood’s services.
Membership has its perks…and price
While the card charges no annual fee, it requires a Robinhood Gold membership, priced at $5 monthly or $50 annually, adding a cost layer for potential users.
Market impact and consumer considerations
Robinhood’s foray into financial services with the Gold Card may expand its user base by appealing to a broader market. However, concerns over past controversies and reward flexibility may affect consumer interest.
Is the Robinhood Gold Card the right credit card for you?
If you’re already a Robinhood Gold user, this card is probably a no-brainer because it offers a strong flat earning rate and redemptions to your existing brokerage account at no additional price.
However, if you are not a Robinhood Gold member already (and won’t be a power user of Robinhood Gold services after getting the credit card) you can do better than this card. Note that there’s no welcome bonus, rewards are tied to Robinhood’s investment platform and travel portal, and you have to pay a $50 to $60 annual fee for Robinhood Gold. All of which is probably not worth the extra 1% you’d earn compared to a regular 2% cash-back card.
Frequently asked questions
Who can apply for the Robinhood Gold Card?
It’s available exclusively to Robinhood Gold members.
What are the rewards and benefits?
Users enjoy 3% cash back on purchases, 5% on travel, no foreign transaction fees, and various protections.
Is there a fee for the Robinhood Gold Card?
No annual fee for the card itself, but a Robinhood Gold membership is required.
Key takeaways
- Robinhood Gold Card offers competitive cash-back rates, especially appealing to Robinhood users.
- Requires a Robinhood Gold membership, introducing a cost for potential cardholders.
- The card features unique benefits, including a 10-karat gold card for eligible users.
- Potential cardholders must weigh the benefits against costs and personal financial strategies.
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