Is Robinhood Credit Card Worth It? Robinhood Credit Card Review

Is Robinhood Credit Card Worth It? If you’re wondering whether this card is a smart financial move for you, you’re not alone! In this post, we’ll dive into everything you need to know about the Robinhood Credit Card—from its cashback rewards and crypto features to the pros and cons. We’ll also discuss who it’s best suited for and if it really lives up to the hype. Ready to find out if this card fits your wallet? Let’s dive in!

What Is The Robinhood Credit Card?

First off, let’s get a basic understanding of what this card actually is. The Robinhood Credit Card is a no-annual-fee credit card issued by Robinhood, the well-known trading app. What makes it stand out is the way it lets you earn rewards. Instead of just getting cash back or points, you get rewards that can be automatically invested in stocks or cryptocurrency. So, if you’re into investing or crypto, this could be a nice way to “grow” your rewards rather than just spending them.

You must already have an account with Robinhood in order to apply for the Robinhood Credit Card. So, if you’re already using Robinhood to trade or invest, this could be an easy next step. If not, you’ll need to sign up for an account. The application process is pretty simple, all done through the Robinhood app, which is available for both iOS and Android users. But, let’s take a closer look at the features to see if it’s really worth it.

Cashback And Rewards: A Deeper Look

One of the main things that people are curious about when it comes to the Robinhood Credit Card is the rewards. Let’s begin with the fundamentals: you receive 1.5% cashback on each and every transaction you make. That’s pretty standard for a no-fee card, but what makes this card different is what you can do with your cashback.

Instead of simply earning cash that sits in your account or spending it right away, your rewards get automatically invested into Robinhood’s platform. You can choose to invest in either crypto or stocks. You might receive Bitcoin, Ethereum, or even fractional shares of stocks, depending on how you choose to allocate your rewards.

Now, this could be a game-changer if you’re already into investing, but if you’re the type of person who likes to get cold, hard cash or redeem rewards for gift cards or travel, this might not be your best option. Still, the idea of seeing your rewards grow in the stock market or in cryptocurrency, especially with the potential for a high return, can be pretty tempting.

Robinhood Credit Card Review

The Robinhood Gold Card offers an attractive 3% cash back on all purchases and 5% on travel booked through its portal, making it competitive in the cash-back credit card market. However, it requires a $5 monthly subscription to Robinhood Gold, which may deter some users. While it has no annual fee, the membership cost should be considered when evaluating overall value.

The card also features virtual cards for added security and allows family members to be added as cardholders. Overall, it’s a solid option for existing Robinhood users looking to maximize rewards on everyday spending.

Robinhood Credit Card Benefits

Let’s take a look at some of the things that make the Robinhood Credit Card appealing.

No Annual Fee

The fact that there’s no annual fee is a big win. Many cards, especially those that offer investment or crypto rewards, come with hefty annual fees. With the Robinhood Credit Card, you won’t have to worry about paying extra just for holding the card. It’s one less thing to think about when considering how much value you’re getting from it.

Simple Rewards Structure

Some cashback cards can be a bit confusing with rotating categories or bonus multipliers. But with the Robinhood Credit Card, you get a straightforward 1.5% cashback on all purchases. No need to track spending in specific categories or deal with complicated redemption processes.

Crypto and Stock Investing Perks

This is the standout feature of the card. You will be able to invest your rewards in cryptocurrency or stock for you automatically. So, rather than spending those rewards on something that doesn’t grow your wealth, they go directly into assets that could increase in value over time. If you’re already familiar with Robinhood’s platform and like the idea of using your card to enhance your portfolio, this could be a win.

No Foreign Transaction Fees

If you travel internationally, the Robinhood Credit Card is a solid choice because it doesn’t charge foreign transaction fees. A lot of other cards tack on 3% fees for international purchases, but with this card, you can spend freely without worrying about extra charges.

Disadvantages Of the Robinhood Credit Card

Of course, no card is perfect, and the Robinhood Credit Card has its fair share of drawbacks. Let’s take a look at a few things you might want to consider before applying.

Limited Availability

While the Robinhood Credit Card is being rolled out across the U.S., it’s not available to everyone just yet. So, if you’re interested, it’s a good idea to check if it’s offered in your area.

Limited Rewards Options

While crypto and stock rewards are cool, they’re not for everyone. If you prefer more traditional rewards, like cash back or travel points, this card might not be the best fit. Plus, the rewards are tied to the Robinhood platform, which means you’re limited to the assets available there—mostly stocks and crypto.

Lack of Bonus Categories

One downside to the Robinhood Credit Card is that it doesn’t offer bonus categories like some other cards. For example, cards like the Chase Freedom Unlimited give you 3% cashback on dining and 5% on certain rotating categories. The Robinhood card sticks with the flat 1.5% across all purchases, which might feel a bit underwhelming if you’re used to bonus categories.

Must Be A Robinhood Customer

To truly get the most out of the card, you need to already be a Robinhood user. If you’re not into investing or crypto, this card might feel like overkill. Plus, the card is designed to enhance your experience with the Robinhood app, so it’s not as useful if you’re just looking for a regular cashback card.

Volatility of Crypto

Another potential downside is the volatility of the assets you’re investing in. Crypto, in particular, can be highly unpredictable, so if you’re earning crypto rewards, there’s a chance that their value could plummet. This adds an element of risk that you don’t get with straightforward cashback.

Who Is The Robinhood Credit Card Best For?

So, who would actually benefit from this card? Let’s break it down.

Crypto Enthusiasts

If you’re already into crypto or are interested in starting, this card could be a great way to dip your toes into the market. Earning crypto rewards automatically can be a nice bonus, especially if you’re looking for a passive way to grow your holdings.

Casual Investors

If you don’t want to spend time managing investments but still want to build a stock or crypto portfolio, the Robinhood Credit Card can be a simple way to do so. Just let your rewards build up and invest without lifting a finger.

People Who Use Robinhood

If you’re already an active user of Robinhood, this card makes a lot of sense. You’re already familiar with the platform, and integrating your rewards into your account is easy and seamless.

People Looking for Simplicity

Not everyone likes complex rewards systems. If you just want a simple cashback card that lets you earn and invest without worrying about rotating categories or redemption options, this card could be perfect.

Is Robinhood Credit Card Worth It?

The Robinhood Gold Card is worth considering if you value cash back and are already a Robinhood Gold member. It offers an impressive 3% cash back on all purchases, with no annual fee, making it competitive. However, the requirement of a $5 monthly subscription may deter some users. Evaluate your spending habits to determine if it fits your needs.

Robinhood Credit Card Customers Reviews

Customers generally appreciate the Robinhood Gold Card for its 3% cash back on all purchases and no annual fees. Users find the integration with the Robinhood app convenient for tracking rewards and managing virtual cards. However, some reviews highlight concerns about the travel portal, which often offers higher prices than competitors. Overall, it’s seen as a solid option for those who value straightforward cash back without complex categories.

How Does Robinhood Credit Card Compare to Other Popular Credit Cards?

When comparing the Robinhood Credit Card to other popular cards, there are a few things to keep in mind.

Traditional Cashback Cards:

For example, the Citi Double Cash offers 1% back on all purchases, plus another 1% when you pay. While this doesn’t have the crypto feature, it’s a simple and effective card for those who want cash-back without complicating things.

Crypto Cards:

The BlockFi Rewards Visa Card, for instance, also lets you earn crypto rewards, but it offers a flat 1.5% on all purchases and pays out Bitcoin as rewards. It’s similar, but some might prefer Robinhood’s integration with stocks, too.

Stock-Investing Cards:

Some cards, like the SoFi Credit Card, offer a mix of cashback and stock rewards. If you’re looking for something that focuses purely on investments, however, Robinhood’s approach with both stocks and crypto may be more appealing.

FAQs

How do I apply for the Robinhood Credit Card?

Simply download the Robinhood app, sign in (or create an account), and follow the steps to apply for the card.

What Are The Eligibility Requirements?

You need to be a U.S. resident, have a Robinhood account, and meet the credit score requirements.

Can I redeem my cashback for something other than crypto or stocks?

No, your cashback can only be invested in crypto or stocks on the Robinhood platform.

How does the Robinhood Credit Card compare to the SoFi Credit Card?

While both offer investment rewards, the Robinhood Credit Card specifically lets you earn both crypto and stocks, while SoFi focuses more on cash back and investments in its own ecosystem.

Are there any fees associated with the Robinhood Credit Card?

There are no annual fees, and it also doesn’t charge foreign transaction fees, which is a nice bonus for travelers.

Is The Robinhood Gold Card Considered A Credit Card?

No, the Robinhood Gold card is not a traditional credit card. It’s a debit card that allows users to access their cash balance in Robinhood. It’s linked to your Robinhood account, so it operates much like a standard debit card but offers additional perks like premium access to margin trading and after-hours trading.

What Is The APR On A Robinhood Credit Card?

The Robinhood Credit Card offers an APR based on your creditworthiness, but since it operates as a debit card, it doesn’t come with interest rates in the traditional sense. However, if you use Robinhood Gold to borrow on margin, you’d be subject to the annual percentage rate (APR) for margin lending, which varies.

How Many Users Are Subscribed To Robinhood Gold?

As of the most recent reports, Robinhood Gold has over 2 million subscribers. Robinhood Gold provides users with premium features, including margin trading, higher instant deposit limits, and access to research tools. It’s become increasingly popular among more active investors who want to take their trading to the next level.

Is The Robinhood Card A Debit Or Credit Card?

The Robinhood Card is a debit card, not a credit card. It’s linked directly to your Robinhood brokerage account, allowing you to spend your cash balance. While it shares some features with credit cards, like earning rewards and offering convenience, it doesn’t extend credit, so you can only spend what’s in your account.

How Are Payments For The Robinhood Credit Card Handled?

Payments for the Robinhood Credit Card are handled by your linked bank account. Since it’s a debit card, there’s no need to make monthly payments or pay interest. However, if you use Robinhood Gold and borrow on margin, you will need to pay back any borrowed funds according to the margin loan terms.

What Steps Are Involved In Applying For The Robinhood Credit Card?

To apply for the Robinhood Credit Card, you need to first create a Robinhood account and verify your identity. Then, you can apply through the Robinhood app. The process is simple and involves providing personal information and undergoing a credit check. Approval is based on your credit score and other factors.

What Are The Eligibility Criteria For The Robinhood Credit Card?

To be eligible for the Robinhood Credit Card, you must be at least 18 years old, reside in the U.S., and have a Robinhood brokerage account in good standing. Additionally, Robinhood will check your credit score to determine if you qualify for certain features, like higher spending limits or rewards.

When Was The Robinhood Credit Card Introduced?

The Robinhood Credit Card was introduced in 2022. It was designed to give users an easy way to access their funds while offering cash-back rewards. The card quickly gained popularity, especially with those who were already using Robinhood for investing and wanted a seamless way to manage their finances.

How Can You Get Pre-Approved For A Robinhood Credit Card?

Getting pre-approved for the Robinhood Credit Card is easy through the Robinhood app. You’ll need to log in to your Robinhood account and follow the prompts to apply. A soft credit check will be done to assess your eligibility, and you’ll receive an offer if you meet the necessary criteria.

What Is The Credit Limit For The Robinhood Card?

Since the Robinhood Credit Card operates as a debit card, it doesn’t have a traditional credit limit. Instead, you can spend up to the available balance in your Robinhood account. However, if you’re using Robinhood Gold and have access to margin, your effective spending limit can be higher, depending on your account balance.

What Are The Drawbacks Of Using Robinhood?

One drawback of Robinhood is its limited customer service. While the platform is user-friendly, it can sometimes be difficult to get support quickly. Additionally, Robinhood charges fees for certain services, like transferring funds out of the platform. It’s also not as feature-rich as some traditional brokerage platforms.

Which Bank Issues The Robinhood Credit Card?

The Robinhood Credit Card is issued by Sutton Bank, a partner bank. Sutton Bank handles the card’s operations, including transactions and customer support. The partnership allows Robinhood to offer users a seamless experience between their brokerage accounts and the card, making it easy to spend and track funds.

Does Robinhood Gold Provide Monthly Payments?

Robinhood Gold itself doesn’t offer monthly payments, but it does come with a monthly subscription fee. This subscription gives you access to features like margin trading, additional research tools, and extended trading hours. The cost of Robinhood Gold depends on your account level, and fees are charged monthly.

How Many Credit Cards Should I Keep?

The number of credit cards you should keep depends on your financial goals and habits. Typically, having 2-3 cards is a good idea: one for everyday purchases, another for rewards, and a third for emergency use. Having multiple cards can help improve your credit score if you manage them responsibly.

Is The Robinhood Card Made Of Actual Gold?

No, the Robinhood Card is not made of actual gold. It features a sleek design, but it’s not crafted from gold. While the card may have a premium look, it’s made of metal alloys that offer durability and a premium feel. It’s more about style than actual gold content.

Is The Robinhood Gold Card Constructed From Metal?

Yes, the Robinhood Gold Card is made from metal, which gives it a premium and durable feel. The card is designed to be visually appealing and solid, offering a sense of luxury. The metal construction adds to the overall premium experience for users who opt for Robinhood Gold.

Is A 9.9% APR On A Credit Card Considered Good?

A 9.9% APR on a credit card is relatively low, especially when compared to average credit card APRs, which can be much higher. However, the best APRs usually go to people with excellent credit scores. If your credit score is good, you might qualify for even lower APRs, making it more favorable.

Why Am I Unable To Withdraw Funds From Robinhood After Selling?

If you can’t withdraw funds from Robinhood after selling, it may be due to the settlement period, which typically takes 2-3 business days. This is when the sale of stocks is processed and finalized. You can only withdraw funds once they’ve settled in your account. Additionally, if you have pending margin loans, that can delay withdrawals.

Does Robinhood Gold Charge A Monthly Fee?

Yes, Robinhood Gold charges a monthly subscription fee. The cost depends on the level of access you want. The basic plan starts at $5 per month, which gives you access to features like margin trading and research tools. Higher-tier plans have additional features and higher fees.

Can I Use My Robinhood Account To Pay My Bills?

While you can’t directly pay bills through Robinhood, you can transfer funds to a linked bank account and use that to pay your bills. Robinhood offers convenient transfers, but it doesn’t have a built-in bill-pay feature. For paying bills, you would need to use your bank or a payment service.

Is Robinhood A Legitimate Bank?

Robinhood is not a bank, but it’s a legitimate financial services platform that allows trading in stocks, options, and cryptocurrencies. It is regulated by the SEC and FINRA, ensuring it operates within legal guidelines. Robinhood offers certain banking features, like cash management accounts, but it is not a chartered bank.

How Can I Withdraw Over $50,000 From Robinhood?

To withdraw over $50,000 from Robinhood, you would need to follow their withdrawal procedures, but keep in mind that Robinhood may have limits on daily withdrawals. For large amounts, you can initiate multiple withdrawals or contact Robinhood support to discuss options for higher withdrawals or managing limits.

What Is The Maximum Amount I Can Deposit Into Robinhood?

The maximum deposit amount you can make into Robinhood depends on the type of deposit method. For ACH transfers, the daily limit is typically $50,000. However, you may be able to make larger deposits using wire transfers or other methods, but the platform might impose limits based on your account status or verification.

Can I Access Cash From My Robinhood Card?

Yes, you can access cash from your Robinhood Card via ATMs or by using it to make purchases. The Robinhood card functions as a debit card, allowing you to withdraw cash from ATMs that accept Visa. However, there may be fees for out-of-network ATM withdrawals.

Is It Secure To Keep A Large Sum Of Money In Robinhood?

While Robinhood uses industry-standard encryption and security protocols, it is not insured like a traditional bank account, so keeping large sums of money there carries some risk. It’s generally a good idea to balance your investments and consider other financial institutions for funds that need extra protection.

Which Is Better: Fidelity Or Robinhood?

Fidelity and Robinhood are both popular brokerage platforms, but they cater to different needs. Fidelity offers comprehensive tools, retirement accounts, and investment options, making it better for long-term investors. Robinhood is more suited for casual traders who want simplicity, low fees, and easy access to trading on the go. The right choice depends on your investment style.

What Fees Does Robinhood Charge For Cashing Out?

Robinhood doesn’t charge fees for standard cashing-out options like ACH transfers to linked bank accounts. However, for instant transfers, there’s typically a fee (e.g., 1.5% of the transfer amount). It’s important to review their fee schedule to avoid unexpected charges for expedited withdrawals or using out-of-network ATMs.

How Many Subscribers Does Robinhood Gold Have?

Robinhood Gold has over 2 million subscribers. This premium service offers perks like access to margin trading, higher deposit limits, and extended hours for trading. Robinhood Gold has become increasingly popular as it provides more tools and features for active investors looking to get more from the platform.

What Is The 3% Cashback Offer On Robinhood?

The 3% cashback offer on Robinhood applies to purchases made with the Robinhood Credit Card. This reward rate is designed to attract users who are already engaged with Robinhood. The cashback is typically earned on everyday purchases, giving you an opportunity to earn rewards while using your card.

Can Robinhood Be Used To Pay Bills?

Robinhood doesn’t have a built-in bill pay feature, but you can transfer funds to your linked bank account and use that account to pay bills. For example, you could transfer your Robinhood funds to a checking account and then pay bills using traditional banking methods, like online bill pay.

Is The Robinhood Card Made Of Pure Gold?

No, the Robinhood Card is not made of pure gold. While it may have a luxurious appearance and is made of metal, it’s not crafted from actual gold. Instead, it’s made from durable materials that give it a high-quality look and feel but don’t contain real gold.

Is Fidelity A Better Option Than Robinhood?

Whether Fidelity is better than Robinhood depends on your investment needs. Fidelity offers a broader range of investment options, retirement accounts, and research tools, making it ideal for long-term investors. Robinhood, on the other hand, is great for casual traders who want a simple, low-fee platform for quick trades without complexity.

How Much Money Is Safe To Keep In Robinhood?

While Robinhood uses encryption and two-factor authentication to protect your account, it’s best to avoid keeping large sums of money in it long-term. As a non-bank institution, it doesn’t provide FDIC insurance. For higher security, consider diversifying your investments and keeping only what you actively trade in Robinhood.

Is It Safe To Share My Social Security Number With Robinhood?

Yes, it is generally safe to share your Social Security Number (SSN) with Robinhood, as it is a regulated platform and requires this information for identity verification and compliance with financial regulations. However, always ensure you’re on a secure connection (look for “https” in the URL) when entering sensitive information.

What Is The Robinhood Card’s Spending Limit?

The Robinhood Card’s spending limit is based on the balance in your Robinhood account. Since it’s a debit card, you can spend up to the available cash in your account. If you have Robinhood Gold with margin access, your limit could be higher, depending on your margin balance and borrowing capacity.

Which Bank Partners With Robinhood For The Card?

Robinhood partners with Sutton Bank to issue the Robinhood Credit Card. Sutton Bank handles the processing of transactions and provides customer support for the card. This partnership allows Robinhood to offer users a seamless integration between their brokerage account and the debit card functionality.

How Many Credit Cards Are Ideal For Me?

The ideal number of credit cards depends on your financial goals and ability to manage debt. Generally, having 2-3 credit cards is a good starting point. This way, you can maximize rewards and build your credit score without overcomplicating things. Ensure you can manage all your cards responsibly to avoid debt.

What Happens When You Have $25,000 In Your Robinhood Account?

Having $25,000 in your Robinhood account can give you access to more features, especially if you subscribe to Robinhood Gold. With this amount, you may qualify for higher instant deposit limits, margin trading, and more advanced research tools. However, you should consider the risks before leveraging margin trading.

Does Robinhood Provide A $1,000 Credit?

Robinhood does not provide a standard $1,000 credit, but it offers margin accounts through Robinhood Gold. If you are eligible and subscribe to Robinhood Gold, you can borrow money for trading, potentially accessing a line of credit. The amount you can borrow depends on your account balance and margin eligibility.

How Much Does A Robinhood Gold Credit Card Cost?

The Robinhood Gold subscription costs $5 per month for the basic plan. This subscription gives users access to premium features, including margin trading, extended trading hours, and additional research tools. There’s no specific “credit card” cost; the $5 fee is for Robinhood Gold, which gives access to these enhanced features.

Which ATMs Are Free For Robinhood Cardholders?

Robinhood Cardholders can use ATMs in the Allpoint and Visa Plus Alliance networks for free. These ATMs are part of a network of over 55,000 locations where you can withdraw cash without incurring additional fees. Out-of-network ATMs, however, might charge a fee for withdrawals.

What Is Robinhood’s Daily Withdrawal Limit?

Robinhood’s daily withdrawal limit varies depending on the method you use. For ACH transfers, the limit is typically $50,000 per day. However, if you are using a wire transfer or another method, you may be able to withdraw higher amounts. Always check your account to confirm the current limits and any fees.

Why Can’t I Access All My Funds From Robinhood?

You may not be able to access all your funds from Robinhood because of the settlement period for recent trades. Stock transactions typically take 2-3 business days to settle before you can withdraw the funds. Additionally, if you have pending margin loans, that might impact how much you can access at any given time.

Why Am I Being Charged A $10 Fee By Robinhood?

The $10 fee by Robinhood may be due to an instant transfer or withdrawal. Robinhood charges this fee when you use instant deposits or transfer funds to your bank immediately. Standard transfers are usually free, but opting for faster transactions can incur these fees. Always check your fee schedule for specific details.

Is It Secure To Keep All Your Money In Robinhood?

While Robinhood uses industry-standard security features like encryption and two-factor authentication, it’s not insured like a traditional bank account. It’s safer to keep only the funds you actively trade in Robinhood and consider transferring larger amounts to a more secure, FDIC-insured bank account for long-term savings.

Can I Use Zelle With Robinhood?

No, you cannot use Zelle directly with Robinhood. Zelle is a peer-to-peer payment service, but Robinhood does not currently integrate with Zelle for sending or receiving funds. However, you can transfer money to your bank account and then use Zelle through your bank, if they support the service.

Conclusion: Is Robinhood Credit Card Worth It for You?

So, is the Robinhood Credit Card worth it? If you’re someone who enjoys investing or is interested in getting into crypto, it might be a great way to passively grow your portfolio. However, if you’re looking for a more traditional rewards card or want to earn points that can be redeemed for travel, cash, or gift cards, you might want to look elsewhere.

In the end, the Robinhood Credit Card works best for those who are already using Robinhood or are comfortable with the idea of using crypto or stocks as their rewards. If that sounds like you, it could be a fun—and potentially profitable—addition to your wallet.