Rocket Visa Signature® Card Review: Big Value for Current and Future Rocket Mortgage® Clients

The Rocket Visa Signature® Card is made with present and future homeowners in mind. It earns points you can redeem toward a new mortgage or existing mortgage balance with Rocket. You can also redeem points for cash back, but they're worth much less this way. See exactly how it works and the pros and cons in our Rocket Visa Signature® Card review.

This credit card is a good fit for: Future home buyers who plan to use Rocket Mortgage and homeowners who have a mortgage with Rocket.

Top perks

Here are the main benefits you get with a Rocket Visa Signature Card.

Welcome offer

Earn a $200 statement credit when you spend $3,000 in the first 90 days.

5 points per $1

The Rocket Visa Signature Card earns 5 points per $1 on all eligible purchases. That rewards rate applies to all types of purchases, and there are no bonus categories to manage. You can get as much as $0.01 per point, which would mean the card earns up to 5% back, an incredible rate that no other credit card can match. But the exact value depends on how you use your points, which is covered below.

Redeem points for mortgage savings

There are three ways to redeem points with a Rocket credit card:

• New mortgage transactions with Rocket: You can apply your points to your down payment, fees, and closing costs and get $0.01 per point. If you redeem your points this way, your card effectively earns up to 5% back. You can redeem up to 800,000 points this way, for a cash equivalent of $8,000 per loan.
• Existing mortgages with Rocket: You can apply your points toward the unpaid balance on an existing mortgage with Rocket and get $0.004 per point. If you redeem your points this way, your card effectively earns 2% back.
• Cash back: You can apply your points as a statement credit on your credit card bill and get $0.0025 per point. If you redeem your points this way, your card effectively earns 1.25% back.

The highest flat rate (one that applies to all types of purchases) we've seen from other credit cards is 2%. There are also cards that have bonus categories where they earn 5% back or more. But there are normally bonus category spending caps, such as $1,500 per quarter.

So, if you're sure you'll use Rocket Mortgage, this card's up-to-5% rate is as good as it gets. If you have a mortgage with Rocket, a 2% rate is still impressive, but there are other cards that offer just as much. If you're not sure you'll use Rocket, then you should go with another card, because a 1.25% cash back rate is mediocre.

OTHER OPTIONS: Best Rewards Credit Cards

$200 statement credit

When you spend $3,000 in the first 90 days with this card, you earn a $200 statement credit. This is a decent welcome offer, although it does have a high spend requirement for the amount you earn. If you're looking for a card with big upfront value, check out the best credit card sign-up bonuses for better options.

Rocket Money Premium membership included as a benefit

Rocket Money is a budgeting app that can help you reach your personal finance goals. In addition to the standard version, there's also a paid version, Rocket Money Premium. It offers additional features, including a concierge service that can review your subscriptions, cancel ones you don't need, and attempt to get fee refunds on your behalf.

SEE MORE: Best Budgeting Apps

Purchase protections

Rocket Visa Signature® Card comes with valuable protection benefits on eligible purchases:

• Extended warranty protection: Doubles qualifying warranty coverage up to a maximum of one additional year.
• Porch piracy protection: Get covered up to $10,000 for an eligible stolen item.
• Cell phone protection: Covers theft or damage up to $750 (with a $50 deductible) when you pay your wireless bill with your card every month.

Restrictions, limitations, and exclusions apply. To learn more about these protections, including what's covered and what isn't, review the guide to benefits that comes with the card.

What could be improved

The Rocket Visa Signature® Card has a couple of notable drawbacks.

$95 (waived for Rocket Mortgage clients) annual fee (waived if you have a mortgage with Rocket)

This card has a $95 (waived for Rocket Mortgage clients) annual fee, but Rocket waives it if you have an existing mortgage with the lender. Because of the annual fee, this card is only worth getting if you already use Rocket or if you plan to do so in the future. If not, it won't be the best choice, and you're better off looking at other credit card reviews.

Poor value for cardholders who don't use Rocket Mortgage

While this is advertised as the card made for homeownership, it's really the card made for homeownership with Rocket Mortgage. You only get good value for your points on new mortgage costs and existing mortgage balances with Rocket. If you decide on a different mortgage lender, you'll only be able to get cash back with your card, meaning you'll effectively earn 1.25% back in the form of a statement credit. You'll also need to pay that $95 (waived for Rocket Mortgage clients) annual fee.

There's no reason to pay $95 (waived for Rocket Mortgage clients) for a card that earns 1.25% cash back. To be blunt, that's a terrible deal. On the other hand, a no annual fee card that earns between 2% and up to 5% is up there with the best credit card offers. So, the value of this card hinges on using Rocket Mortgage. It is an excellent mortgage lender, but there are other quality options as well.

SEE MORE: Best Mortgage Lenders

It's recommended to have a FICO® Score of 670 or higher before applying for the Rocket Visa Signature® Card. This card is intended for consumers with good credit or excellent credit.

You can see if you're pre-approved for this card on the Rocket Card website, with no impact to your credit score. A pre-approval doesn't mean that approval is guaranteed, but it shows that based on your credit profile, you're likely a fit for the card.

You have a mortgage with Rocket, or you're planning to buy a home and you've already decided you'll use Rocket Mortgage.

The Rocket Visa Signature® Card deserves credit for originality, but it's only a good fit for Rocket Mortgage clients. In particular, it offers fantastic value for future clients, who can essentially earn up to 5% back by redeeming points toward the closing costs and down payment on their new Rocket mortgage. Current clients may also want to give it a look to earn 2% back -- but there are other cash back cards that earn that much, no matter who you use for your mortgage.

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.