On starter cards, rewards are now standard. Here’s why | Business
Competition intensifies
More companies have entered the starter card space in recent years and rewards seem to have become table stakes.
Two startups, Jasper and Upgrade, launched their own rewards programs for existing starter card products in October 2020. Upgrade notes that its decision was based on consumer demand.
“When we asked them” what additional functionality would you like to see in Upgrade Card? “, the # 1 answer has always been rewards,” said Upgrade co-founder and CEO Renaud Laplanche in an email. “So we built it!” The reward rate on the Upgrade product is also 1.5% cash back on all purchases.
Meanwhile, the X1 card, slated for release later in 2020, promises reward rates that can range from 2 points to 4 points back for $ 1 spent. The card will use applicants’ income as a factor when assessing creditworthiness, and it only promises smooth credit requests when you apply.
Even traditional transmitters offer paths to rewards for beginners
Discover’s secure card has always offered cash back rewards, which is still rare among cards in this category. And a number of student cards from Discover, Capital One, and others come with basic rewards programs and other student-friendly extras.
But some traditional transmitters go further. Consider American Express Partnership with Nova Credit, announced in 2019. It allows recent immigrants to qualify for an American Express product – including rewards cards – based on their credit history in certain countries. They don’t necessarily need to have built such a history in the United States first.