Should I Get the Robinhood Gold Credit Card? [March 2024]
Mar 28, 2024
Read time: 6 minutes
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Robinhood now has a credit card.
But don't confuse this with the Robinhood Cash Card...
...because that's a debit card.
I mean an actual credit card with a 3% cash back on all categories.
Along with some of those others perks like Visa Concierge and Extended Purchase Warranty.
So, am I reserving myself a Robinhood Gold Card?
Let's dive into why I think this might one of the...
...if not the best...
cash back credit cards available.
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What is the Robinhood Credit Card?
A few days ago, Robinhood held their first-ever keynote event.
At the event there were a number of the new products....
and the Gold Credit Card was one of them.
Let's get into the details of what it is.
👉 Need to be a Robinhood Gold Member ($5/mo or $50/annual)
👉 No Annual Fees
👉 No Foreign Transaction Fees (good for international travel)
The requirement needing to be a Robinhood Gold Member is not a wild idea.
It's just like needing to be an Amazon Prime member to get their Amazon credit card.
What about the rewards?
👉 3% Cash Back on All Categories
👉 5% Cash Back on Bookings within their Travel Portal
How does that stack up?
From a cashback perspective...
...unheard in the industry.
Usually 2% cash back is the gold standard.
They sure raised it.
What about the travel portal bookings?
It's a nice touch to round out the 3% on every category reward.
Not an industry-shaking move.
But completely on par.
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Who is the Robinhood Credit Card for?
It's probably best to start with defining the three major types of credit card users.
Starters.
Either your first card...
...or a card to help you build your credit score up.
Everyday.
A card that you can get some sort of rewards for things that you may buy every day.
And no annual fee.
This is the one card that should be a strong fallback.
Premium.
I think most people think of a premium card making a giant *clink* noise when dropped...
...but it should be more than that.
Usually this type of card has what I would call tailored benefits.
This should be the card's special sauce...
...which unfortunately most other cards have a $200 - $600+ annual fee.
And requires a higher credit score to qualify for.
Who is the Robinhood Credit Card for?
According to their latest announcement...
...everyone.
They tried their best to mix together the benefits of each into one.
I would personally add one thing...
...this is a great card for cash back credit card users.
The game is different if you are a point-hacker.
But this card (could) be a compelling switch from the points game to cash back.
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Do I Get Cash Back or Points Using the Robinhood Credit Card?
It is a cash back card...
...that is represented in points.
Confusing?
I honestly don't know why the companies do this.
But it's probably because it just looks better for users.
Imagine earning 30 points...
...but when you open your app it shows $0.30.
It just feels smaller.
But that's basically all you need to remember.
With the 3% cash back on all categories.
Every $1 will get your 3 points.
Unless you spend it in the Robinhood Travel Portal.
Every $1 will get your 5 points.
Then when you want to redeem your points...
...just remember that each point is worth $0.01.
This is different than reward point cards.
Mostly because those cards have the additional layer of converting those points to other transfer programs.
The ability to transfer points to other programs then can allow each points to be worth more than $0.01.
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How Do I Redeem My Robinhood Points?
There are a few ways to redeem your points (or "cash back").
Robinhood Brokerage Cash Account.
This is basically our Robinhood bank account.
You can deposit each point back to your cash account at 1 point = $0.01.
Then you can decide to either invest it or transfer it to any of your other connected bank accounts.
Spend it on Travel, Shopping, or Gift Cards.
There are a number of parters available directly through the app for you to "spend" the points at.
Find whichever thing you want to buy...
...and then purchase it.
Same conversion of 1 point = $0.01.
I do like how there is the Robinhood Brokerage Cash Account option.
If I had an account there...
...I would set up a monthly transfer to the account and then purchase some index funds.
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How Do I Get the Robinhood Credit Card?
If you already have the app...
...you'll see a notification when you next login.
If there isn't a pop-up you can directly pull it up by going to the Robinhood Gold Credit Card website.
For those that are jumping on this early before their general release...
...you can reserve your spot at the same link.
Not an affiliate link, I don't even use Robinhood anymore.
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What is Robinhood Gold?
Amazon has Amazon Prime.
Costco has their Membership Card.
Robinhood has their Gold Membership.
Cost: $5 per month or $60 per year.
If you are using Robinhood as your go-to brokerage or 401(k) provider...
...then upgrading has some perks.
Not going to go too far into it as that is more of a brokerage evaluation discussion more than credit card.
You can check out their Robinhood Gold Membership website for more information.
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The Verdict: Should I Get the Robinhood Credit Card?
If you are a Robinhood Gold Member...
This is a strong card to consider.
You aren't spending anything more because you're already paying for the membership.
3% cash back is industry leading rewards.
And you already know I am an advocate of keeping your financial system simple.
I compared it to the Amazon Prime Credit Card earlier...
...another comparison could be the Costco Credit Card.
If you are not a Robinhood Gold Member...
Are you optimizing for cash back or point rewards?
If it's cash back, this might make sense depending on what other cards you are using.
If you are using a cash back card that earns 2% on all categories
(like the Wells Fargo Active Cash Card or Fidelity Rewards Card that have no subscription or annual fees)
This card would only makes sense if the 1% extra bonus is worth more than the $50 Robinhood Gold Member fee.
Optimizing for point rewards?
Broadly would say - no.
Most people, even myself, are optimizing earning points within different credit card networks.
So the cash back reward, even at 3%, would be a step backwards
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About Robinhood
Robinhood is a financial services platform that offers commission-free trading of stocks, options, and cryptocurrencies, along with traditional banking services. Designed to democratize finance for all, it features a user-friendly app aimed at attracting young investors and providing them with tools and educational resources to participate in the financial market.
Official Robinhood Website: The Gold Card
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📚 Other Notable Resources
- Last Week's Article: 3 Ways to Maximize the Value of Your Credit Card Points (+Seats.aero Walk-through)
- Watch on YouTube: Should I Get the New Robinhood Gold Credit Card?
Nicholas Ayala
or LinkedIn
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