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Robinhood new card 3% on all categories
Just have to be a gold member which is 5 per month
3 % on all categories 5% on travel through portal looks like purchase of x1 is finally being intergrated. https://finance.yahoo.com/news/robin...230326249.html |
It doesn't look bad if you already have a reason to have Robinhood gold. Points can be redeemed 1cpp to the brokerage, then immediately transferred out to a deposit account. RH gold if you don't have it already for other benefits it offers like a 1% match on deposits, a 5%+ APY on unswept cash, 3% bonus on IRA contributions, etc. makes this have a $60 effective AF (to get RH gold) and there's no SUB.
I'd say if you already have RH gold the card is a no brainer. If not it gets a lot hazier. One baffling fee: A fee of $40 per replacement card. You're basically incentivizing people to wait to report cards as lost/stolen in hopes that they spend more time finding them, increasing the risk of the issuer being liable for fraud if it's actually lost and found by someone unscrupulous. |
NY Times report https://www.nytimes.com/2024/03/28/y...edit-card.html (Paywall)
Some highlights: Here’s the first thing to know about the new Robinhood credit card that promises 3 percent cash back on all purchases, without limits: Yesterday, when I asked Vlad Tenev, the company’s chief executive, to guarantee that it would stay at that level for 18 months, he would not. Big-spending system-beaters take great delight in moving, say, $100,000 of their annual expenses to a new card, not carrying a balance, earning $3,000 in cash back each year and declaring themselves victors over foolish companies. But Mr. Tenev aims to draw more than his fair share of people who are relatively new to credit cards and intends to approve nearly every gold member who applies. If those customers borrow, without defaulting on their loans altogether, they could be profitable for the company. Time will tell whether Robinhood has the underwriting skills to make this work. The company doesn’t mince words. “Robinhood may make changes to the Rewards Program (including termination of the Rewards Program) or change the terms of this agreement at any time,” reads the third sentence of its rewards rules. It’s not fond of you system-beaters, either. The rules go on to say the company can cancel your card if you engage in “gaming” or if it believes you “may attempt to do so.” |
Originally Posted by mia
(Post 36119668)
NY Times report https://www.nytimes.com/2024/03/28/y...edit-card.html (Paywall)
I have had a major US Bank (top 4) as a client at one point. Of course I was expected to buy them drinks. I caught a ton of .... for using a credit card that wasn't theirs to buy drinks (USB Altitude Go). When I said 4% on restaurants they said alright, hard to argue. When I told them that I had a 3% anywhere card (a couple years ago, AOD FCU Visa - discontinued to new applicants, previous cardholders like myself still earn 3%) with no AF, they were in disbelief and asked if they could take a picture of the card. Being that the only thing on the front was my name (they knew) and the card artwork, I allowed it. They told me essentially that even with zero benefits that it was an absolutely losing proposition and that even an issuer at scale couldn't make it work, and that a small credit union in Alabama absolutely had to be losing money on this. If one of the largest banks in the US issuing a ton of credit card volume can't make 3% rewards economically viable - Robinhood is not doing so as a fintech with another bank actually issuing the card - which they've essentially admitted in not giving a definitive guaranteed timeframe for 3% everywhere rewards. The question is how much they can gain back value by charging whatever the current RH Gold value is, and people keeping unswept cash/brokerage investments/individual retirement accounts under RH's portfolio. |
IMHO, Robinhood = deal breaker.
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Originally Posted by mia
(Post 36119668)
NY Times report https://www.nytimes.com/2024/03/28/y...edit-card.html (Paywall)
Some highlights: But Mr. Tenev aims to draw more than his fair share of people who are relatively new to credit cards and intends to approve nearly every gold member who applies. If those customers borrow, without defaulting on their loans altogether, they could be profitable for the company. Time will tell whether Robinhood has the underwriting skills to make this work. |
Anyone with the Bank of America Premium Rewards looking into this card? You only need to spend $16,000 to break even on the $60 annual Gold subscription with the 37.5 basis point cash-back difference (2.625% for Platinum Honors v. 3% flat).
But it looks like X1 has a history of dropping credit limits and credit limits were never too high to begin with. |
Robinhood Gold 3% cash back credit card
Robinhood has a 3% cash back credit card. Does anyone here have this card yet? Anyone know how tolerant they are of manufactured spending?
Can the cash back be put into a Roth IRA as a bonus and not as a contribution? |
Originally Posted by Codename47
(Post 36125597)
....Does anyone here have this card yet?
Reservations for a spot on the waitlist for the card started on Tuesday. The company expects to roll out the product broadly later this year. |
Originally Posted by phltraveler
(Post 36119867)
This is a fun one.
I have had a major US Bank (top 4) as a client at one point. Of course I was expected to buy them drinks. I caught a ton of .... for using a credit card that wasn't theirs to buy drinks (USB Altitude Go). When I said 4% on restaurants they said alright, hard to argue. When I told them that I had a 3% anywhere card (a couple years ago, AOD FCU Visa - discontinued to new applicants, previous cardholders like myself still earn 3%) with no AF, they were in disbelief and asked if they could take a picture of the card. Being that the only thing on the front was my name (they knew) and the card artwork, I allowed it. They told me essentially that even with zero benefits that it was an absolutely losing proposition and that even an issuer at scale couldn't make it work, and that a small credit union in Alabama absolutely had to be losing money on this. If one of the largest banks in the US issuing a ton of credit card volume can't make 3% rewards economically viable - Robinhood is not doing so as a fintech with another bank actually issuing the card - which they've essentially admitted in not giving a definitive guaranteed timeframe for 3% everywhere rewards. The question is how much they can gain back value by charging whatever the current RH Gold value is, and people keeping unswept cash/brokerage investments/individual retirement accounts under RH's portfolio. |
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