Uber releases a Visa credit card made for millennials - but could it do more damage than good?

Monday 30 October 2017

Article by Ceyda Erem

Capturing the hearts (and wallets) of millennials across the US, Uber have just released their own Visa credit card filled with perks tailor made for young people. 

Uber releases a Visa credit card made for millennials - but could it do more damage than good?

In partnership with Barclays, the Visa card offers a $50 credit that be can put towards popular subscription services, like Spotify and Netflix, if you spend $5000 in a year. 

High cashback offers on all things Uber are also up for grabs, as you can get 4% of your spend back for using UberEATS, 3% for hotels and airfare, 2% for online purchases and 1% on everything else! And of course, all earned rewards can be redeemed through Uber credits. 

RELATED: American Express takes top credit card gong in Experts Choice Awards

“Through our partnership with Uber and Visa, we have created one of the most innovative and modern payment experiences in the market,” said head of U.S partnerships at Barclays, Denny Nealon. 

Uber customers can apply for the credit card through the app, which will give instant access to the card’s features before the physical card arrives in the mail 10 days later. 

“The Uber Visa Card is one of the richest no annual fee card programs available in the U.S. Our deep integration into the Uber app enables us to provide the simple and seamless experience customers are looking for,” Nealon said. 

And while the Uber Visa credit card is marketed towards millennials, younger Aussies could find themselves in financial trouble if the credit card ever does reach our shores. 

J.D. Power’s annual 2017 Australia Credit Card Satisfaction Study found that Gen Y cardholders have increased their spending by 28% from last year, while a study by SocietyOne found that nearly 2 in 3 millennial card holders mismanage their credit card, with almost 50% not paying off their balances each month. 

If you think you may be in a little danger with your credit card balance, here are a few things you can do to get things back on track. 

How to responsibly manage your credit card balance

Limit spending - As a rule of thumb, try to only use 20-30% of your available credit at any time. This will help keep your spending manageable and safeguard your credit score.

Pay debt off ASAP - One of the best ways to stay on top of your debt is by paying it off ASAP. It’s best to do this one the same day you’ve used your credit card or at the end of the week. But if you leave it to the end of the month, you’ll risk overspending or facing a late payment fee. 

Leave your card at home - Whether it’s a packet of gum, or a new pair of sneakers, spontaneous buys  happen everyday. The next time you head out, try leaving your card at home to prevent impulse purchases. 

Curious about the kind of rewards you could be getting from other cards? You’re just in time because we’ve just released our Experts Choice Awards for credit cards! Or you can check out Mozo’s credit card comparison tool for more options.

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