Is the Venmo Credit Card Worth It?
by Natasha Gabrielle | Updated July 21, 2021 - First published on March 12, 2021
The Venmo Credit Card has some notable highlights as well as some drawbacks.
If you use Venmo to send money to friends and family, you may have heard that Venmo now has its own credit card. For those who don't use it, Venmo is a popular peer-to-peer payment platform. People of all ages use this app to send and receive money to each other. In 2020, the company introduced the Venmo Credit Card. This card syncs seamlessly with the Venmo app.
But is the card worth it? It depends on what your goals are and what you're looking for in a credit card. This can be a good option for people who already know and love Venmo and use it regularly. It's also a nice option for people who want to earn rewards based on their personalized spending instead of being locked into only one or two spending categories. Here's our take on the Venmo credit card:
Venmo credit card highlights
- No annual fee
- Earn 3% cash back on your top eligible spending category
- Earn 2% cash back on your next top eligible spending category
- Earn 1% cash back on all other purchases
- Eligible spending categories include travel, transportation, grocery, entertainment, dining and nightlife, bills and utilities, health and beauty, and gas
- Get instant access to your Venmo balance
- Cash back shows up in your Venmo balance and can be used for purchases, as statement credit towards your credit card bill, to send to friends and family, or send to your linked bank account
Venmo credit card drawbacks
- No welcome bonus
- Good credit is necessary to get this card
- After the first year, there is a $10,000 annual cap for combined 3% and 2% cash back earning, at which point only 1% cash back will be earned
- A significant amount of spending may earn only 1% cash back if you use the card to spend in a variety of categories
Is it worth it?
Yes, this card is worth it if you want a cash back card that rewards you for your unique spending habits. There's no yearly fee to use this card, and if you're a regular Venmo user, this card can add even more convenience to your daily life.
The Venmo Credit Card functions as a physical contactless card for easy tap-and-pay capabilities, and you even get to choose your favorite card color. The card also has a unique QR code on it, so your friends just have to scan the QR code to pay you when splitting a bill. You can also use your card virtually by requesting a virtual credit card in the Venmo app. If your card is ever stolen or lost, you can disable the physical card within the app.
This card, however, may not be worth it if you're looking for a card with more earning potential. There are other no-annual-fee cards on the market that offer both cash back welcome offers and higher earning rates. For example, the Chase Freedom Unlimited® is worth exploring. The Chase Freedom Flex℠ may be another card that gives you more bang for your buck. Depending on your typical spending categories, these cards may make more sense for your goals. If you're looking for a different credit card with more rewards offerings, check out our list of top credit cards.
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