As you probably know, Upromise is a savings program that helps parents save for their kids’ college. It’s a great concept, but they do have their critics. Check out this Upromise credit card review to find out the pros and cons:
For starters, here are the two different credit cards they offer:
(1) Upro
This card gives back 1% on all purchases (which are deposited into the 529 savings account) so essentially, it’s like a 1% cash back credit card.
On purchases from Upromise restaurants, the card gives a 10% extra. They do the same thing on participating grocery and drugstore items.
(2) Upromise MasterCard w/ grocery and gas rewards
This Upromise credit card also gives 1% on all purchases.
Like the card above, it also gives the 10% match on eligible grocery and drugstore items.
For gas purchased from Exxon or Mobil stations it does 2%. This is extremely disappointing for three reasons (1) you need to buy 20+ gallons per month (2) it only applies to Exxon and Mobil stations, which tend to cost a lot anyway, and (3) the standard rewards at these stations are only 1 penny per gallon.
Citi used to be involved with Upromise credit cards but Bank of America took over in 2009 and now issues/manages them. This is a turnoff for many people, since we all know B of A isn’t exactly known for stellar service.
Are either of the Upromise cards worth it?
At first glance, the 10% sound exciting. But you have to realize that is only on eligible items. For most people only a small percentage of their shopping would qualify.
For example, let’s say you spent $100 at the grocery store and among that was $5 in eligible Upromise items (and those participating items gave 1%). Your total rewards would break down as follows:
1% back on all credit card purchases = $1
1% back on Upromise items = $0.05
10% extra on Upromise items = $0.50
Total Rewards: $1.55 for spending $100
As you can see the Upromise credit card rewards in actuality aren’t too exciting. Furthermore, since Upromise participating items are usually more expensive name brand items anyway, you almost always would be saving more simply buying a store or generic brand instead.
Is there a better option? (sponsored)
Of course you should use your Upromise account to rake up savings, but the added rewards from the Upromise credit card are far from impressive. A better option would be to get a higher cash back credit card and then deposit that money yourself into your 529 savings plan. But what’s the best card do to this? Check out our review of the new, re-vamped 5% cashback program on the
