Cross River Upgrade Credit Card Lineup: 1.5%, 3%, and 5% Cash Back

Today we’re taking a look at a relatively under-the-radar bank’s credit cards. The cash-back rates are actually pretty competitive with current mainstream products. That said, smaller-bank products often come with hidden pitfalls. The key issues with these three cards are fairly similar, so let’s go through them together. We won’t cover the remaining Upgrade Select card since it offers no cash back at all.

Myfive Rewards

The detailed descriptions of these categories are as follows. Eligibility is determined based on merchant category code, so if you’re unsure, you can always make a small test purchase first to see whether it codes correctly. The bonus applies to the first $3,000 in spending each quarter. If you do not make a selection, the card will default to the dining category.

• Groceries: Includes produce markets, supermarkets, convenience stores, etc. For example: Kroger, Publix, Meijer, Safeway, etc.
• Media: Includes TV, internet, and streaming expenses. For example: Netflix, Spectrum, Comcast, Spotify.
• Dining: Includes fast food and restaurants. For example: McDonald’s, Starbucks, Uber Eats, Waffle House.
• Gas and EV charging: Includes gas stations and charging stations (those attached to supermarkets may not count). For example: Shell, Exxon/Mobil, Chevron.
• Travel: Includes airlines and hotels. For example: American Airlines, Marriott, Hilton, Delta Airlines.
• Cell phone service: Includes wireless bills and accessories purchased through the official website. For example: AT&T, T-Mobile, Verizon Wireless, Sprint.
• Pet-related: Includes veterinary visits and pet stores. For example: Veterinarian visits, Chewy.com, PetSmart.
• Home utility bills: Includes utility bills such as electricity, gas, and water. For example: Duke Energy, Pacific Gas and Electric, Con Edison.
• Drugstores: For example: Walgreens, CVS, Rite Aid, etc.

The home utility bills category is fairly unique; very few credit cards offer cash back in this area.

Triple Cash Rewards

The biggest feature of this card is its 3% categories, and there are quite a few of them. Several of the categories overlap with the Myfive card above:

• Groceries: Includes produce markets, supermarkets, convenience stores, etc. For example: Kroger, Publix, Meijer, Safeway, etc.
• Media: Includes TV, internet, and streaming expenses. For example: Netflix, Spectrum, Comcast, Spotify
• Gas and EV charging: Includes gas stations and charging stations (those attached to supermarkets may not count). For example: Shell, Exxon/Mobil, Chevron
• Cell phone service: Includes wireless bills and accessories purchased through the official website. For example: AT&T, T-Mobile, Verizon Wireless, Sprint
• Health-related: Includes drugstores, spas, gyms, and similar merchants. For example: Walgreens, CVS, Academy Sports, Dick’s Sporting Goods, MidwayUSA.com

The health category is probably the most distinctive one here.

Cash Rewards

There’s not much to say about this card: all purchases earn 1.5% cash back. One thing to note is that this 1.5% is only awarded after you pay off the purchase.

Purchases accrue unlimited 1.5% cash back when you pay them back. Certain limitations apply. For more information on the Upgrade Cash Back Rewards Program, please see the program’s Terms and Conditions.

Watch out: the payment setup has a major catch

These three cards share one major pitfall that you really need to pay attention to. If you don’t want to read the full explanation below, just remember this:

• Once each statement is issued, you must pay it in full within two days to avoid interest.
• Or, pay your full balance off before statement close.
• Or, use bill pay from a checking account to prepay extra money into the card account. In effect, you’re depositing money first and then spending against it, which means no interest will be charged (and of course if each statement comes out to $0, there’s nothing to pay).

All three of these methods satisfy the EarlyPay requirement, so you won’t be charged interest.

Now let’s go over why this is such a trap. Most credit cards have a grace period, but this one does not. In plain English:

• Typical credit card: If you pay off all debt shown on last month’s statement every month, no interest is charged. That’s because spending in month T is not finalized until the statement closes in month T+1. As long as you pay the full amount by the due date shown on the statement for month T (usually about 25 days after statement close), no interest is charged. In other words, you typically get about 25 days to pay and avoid interest.
• Upgrade card: You only get 2 days to avoid interest.

If interest is charged, it starts accruing from the date the transaction posts.

Your card offers you an early repayment option to avoid interest. After your first statement period, interest will generally accrue daily from the day a transaction occurs. With EarlyPay, you can choose to pay off your statement balance in full two (2) days after your statement period ends, so that you'll pay no interest on transactions for your next statement period. Or, you can make your required minimum monthly payment on your monthly due date, which is twenty-two (22) days after your statement period ends. If making the minimum payment results in any carryover balance from one statement period to the next, all balances will accrue interest for the next statement period. You can pay off your line at any time to eliminate further daily interest.

If you’re likely to forget payments, I’d suggest setting your statement date to the 1st of each month, then paying the full statement balance on the 25th, and not using the card again until the 2nd. If their autopay can be set for the same day the statement is issued, that would also work.

Welcome bonus

These three cards do not normally come with a welcome bonus. However, if you also open an Upgrade Rewards Checking account at the same time and make 3 purchases with the associated debit card within 60 days (note: this must be the debit card, not the credit card), you can earn a $200 bonus. Also, if you previously opened a checking account with them, or if the checking account is not opened together with the credit card application, you will not be eligible for the bonus.

To qualify for the welcome bonus, you must open and fund a new Rewards Checking Plus account through Upgrade and make 3 qualifying debit card transactions from your Rewards Checking Plus account within 60 days of the date the Rewards Checking Plus account is opened. If you have previously opened a checking account through Upgrade or do not open a Rewards Checking Plus account as part of this application process, you are not eligible for this welcome bonus offer.

About Upgrade Checking

This checking account is actually somewhat useful. The debit card earns 1% cash back in certain categories and 0.5% on everything else. The bonus categories include convenience stores, drugstores, restaurants, gas, recurring bill payments, and recurring phone, internet, TV, and streaming payments.

If you have $1,000 in direct deposit going into the checking account each month, that becomes 2% cash back in those bonus categories and 1% on everything else.

Rewards Checking Plus customers who set up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars - including deliveries - and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year.

Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases

Of course, this account is also FDIC insured.

Rewards Checking Plus is FDIC-insured up to $250,000 through Cross River Bank, Member FDIC.

My take

Personally, I think the 5% card is worth some effort. After all, that’s effectively up to $150 in rewards per quarter, and the category coverage is very broad. Maxing out 5% on things like groceries and drugstores should be pretty easy. The 3% card could also make sense if you spend a lot in the relevant categories. The 1.5% card is just okay.

That said, if your credit score isn’t especially high, this issuer may still be worth considering since approval may be easier.

Application

These are the basic application requirements for these cards. Overall, the credit-score requirement does not seem especially high.

• At least 18 years old
• Physical U.S. address (no P.O. boxes)
• Proof of enough income to make the monthly minimum payment
• Social Security number
• Fair credit or better
• Checking or savings account

Application links

• Upgrade Myfive Rewards
• Upgrade Triple Cash
• Upgrade Cash Rewards