Are you considering getting a Rakuten credit card but unsure if it’s worth it? This article will examine the Rakuten card and help you decide if it’s worth your time and money. As someone interested in financial management, I can understand your dilemma.
With so many credit cards available, choosing the right one for your needs can be challenging. This article will examine the Rakuten card and help you decide if it’s worth your time and money. Let’s get started!
What is the Rakuten Credit Card?
A credit card is a payment card that allows users to borrow money to make purchases. It is a convenient way to pay for things without carrying cash or using a debit card.
The Rakuten credit card is a cashback credit card that allows users to earn rewards for their purchases. It is issued by Synchrony Bank and is co-branded with American Express. Users can earn cashback rewards on purchases made through the Rakuten portal and everyday purchases.
- Cashback rewards: One of the main benefits of the Rakuten Credit Card is its cashback offers. Cardholders can earn up to 3% cash back on purchases made through the Rakuten portal and up to 1% on everyday purchases. Cashback rewards can be redeemed for various options, such as statement credits, direct deposits, or gift cards.
- No annual fee: The Rakuten Credit Card has no annual fee, which means that cardholders can enjoy the card’s benefits without paying any additional fees. This makes the card cost-effective for anyone looking to earn cashback rewards on their purchases.
- Introductory APR Period: Cardholders of the Rakuten Credit Card can take advantage of an introductory APR period, allowing them to enjoy a 0% APR on purchases and balance transfers for the initial 15 months. This offer provides an excellent opportunity to save on interest charges and pay off outstanding balances promptly and cost-effectively.
- Flexible redemption options: Another benefit of the Rakuten Credit Card is its discounts on Rakuten purchases. Cardholders can earn additional cashback rewards when purchasing through the Rakuten portal. This is a great way to save money on everyday purchases, such as groceries, clothing, or electronics.
Overall, the Rakuten credit card is an excellent option for anyone looking to earn cashback rewards on their purchases.
Drawbacks of the Rakuten Credit Card
- One of the main drawbacks of the Rakuten Credit Card is its high APR. While the card offers an introductory 0% APR period, the APR can be increased after that period ends. This can be a disadvantage for cardholders who carry balances on their credit cards.
- Another potential drawback of the Rakuten Credit Card is its limited redemption options. While cardholders can redeem their cashback rewards for statement credits, direct deposits, and gift cards, they may be unable to save their tips for other options, such as merchandise or travel.
- The Rakuten Credit Card does not offer balance transfer options. Unfortunately, this means that cardholders may be unable to transfer high-interest balances from other credit cards to this card to take advantage of the introductory 0% APR period.
- The card does not offer a sign-up bonus. While some credit cards offer sign-up bonuses to new cardholders, the Rakuten Credit Card does not provide this benefit. This can disadvantage people looking to earn or maximize rewards quickly.
How Does It Compare to Other Credit Cards?
The Rakuten Credit Card offers similar cashback rewards and introductory APR periods to other credit cards. Credit cards comparable to the Rakuten card include Chase Freedom Unlimited, Citi Double Cash, and Capital One Quicksilver.
Advantages and Disadvantages of Each Card
Chase Freedom Unlimited offers a sign-up bonus, a higher cashback rate on certain purchases, and a longer introductory APR period. However, it has a foreign transaction fee, and the cashback rewards are limited to $1,500 in purchases per quarter.
The Citi Double Cash offers a higher cashback rate on all purchases but doesn’t have an introductory APR period or bonus categories for earning extra cashback rewards.
Capital One Quicksilver offers a sign-up bonus and a flat cashback rate on all purchases. Still, it has a foreign transaction fee and a shorter introductory APR period than the Rakuten card.
Who Should Get the Rakuten Credit Card?
This card is best suited for people who frequently shop through the Rakuten portal or are interested in earning cashback rewards on their everyday purchases. It is also a good choice for people looking for a credit card with no annual fee and a flexible redemption program.
Who Might Not Benefit From the Card?
It might not be the best choice for people who do not shop through the Rakuten portal frequently or who are looking for a credit card with a higher cashback rate on specific categories. Additionally, people who carry balances on their credit cards might want to consider a credit card with a lower APR to avoid high-interest charges.
Summary of the Ideal Candidate
The ideal candidate for the Rakuten Credit Card is someone who shops through the Rakuten portal frequently and wants to earn cashback rewards on their purchases. They also do not carry balances on their credit cards and value a flexible redemption program.
Finally, they may also want to avoid paying an annual fee for their credit card. Overall, the Rakuten Credit Card is an excellent choice for anyone who wants to earn rewards on their purchases and save money on interest charges.
How to Apply for the This Credit Card?
To apply for the Rakuten Credit Card, follow these exact steps:
- First, visit the Rakuten Credit Card website and click the “Apply Now” button that triggers the application process.
- Afterward, you must complete the application form with your comprehensive personal information, including your full name, address, contact information, employment status, and income details.
- Once you have provided all the required information, please review the application form for accuracy and submit it for assessment.
- The approval process usually takes a few minutes, after which you will receive an immediate decision. If approved, you will be notified, and your new Rakuten Credit Card will be sent to your registered address within a few days.
The approval process for the Rakuten Credit Card is primarily based on the applicant’s credit history and financial background. It typically involves a comprehensive review of your credit score, employment details, and income status. Synchrony Bank, the issuer of the Rakuten Credit Card, facilitates the entire process.
Here are some valuable tips to increase your chances of getting approved for the Rakuten Credit Card:
- Check your credit score and credit report before applying and try to improve it if it’s lower than the average.
- Ensure that your income is sufficient to cover your requested credit limit.
- Minimize your outstanding debt on other credit cards and keep your credit utilization ratio low.
- Provide accurate and complete information on the application form to avoid any inconsistencies that could lead to a decline in the application.
- If you are not approved, you can request a reconsideration or apply again later when your credit score improves.
Strategies for Obtaining With Bad Credit History
If you have a bad credit record or history, getting approved for the Rakuten Credit Card may be difficult, as the card requires a good credit score to be eligible. However, some options are still available to improve your chances of approval.
One option is to apply for a secured credit card, which requires a security deposit that becomes your credit limit. This can be an excellent way to rebuild your credit and demonstrate responsible credit use, which may make you eligible for the Rakuten Credit Card in the future.
Another option is to apply for a credit card for people with bad credit or limited credit history. These cards typically have lower credit limits and higher interest rates, but they can be an excellent way to rebuild your credit score.
Suppose you have been denied the Rakuten Credit Card due to a bad credit history. In that case, you can also consider requesting reconsideration or applying again once you have improved your credit score. This may involve paying off outstanding debts, disputing any errors on your credit report, and making on-time payments for all your bills.
Credit Card Alternatives With Similar Benefits and Rewards
If the Rakuten Credit Card is not the right fit for you, there are several alternative options available that offer similar benefits:
- Chase Freedom Unlimited: With this credit card, you can earn unlimited 1.5% cash back on every purchase without paying an annual fee. Furthermore, it comes with a promotional 0% APR offer for purchases and balance transfers, allowing you to save on interest charges for a certain period.
- Capital One Quicksilver: This credit card offers unlimited 1.5% cashback on all purchases with no annual fee. It also has an introductory 0% APR on purchases and balance transfers.
- Citi Double Cash: With this credit card, you can earn up to 2% cash back on all purchases – 1% when you make a purchase and an additional 1% when you pay off your balance. In addition, the card has no annual fee and a promotional 0% APR period for balance transfers.
- Discover it Cashback: This credit card offers up to 5% cash back on rotating categories and 1% on all other purchases. It also has no annual fee and offers an introductory 0% APR period on purchases and balance transfers.
These credit cards offer similar cashback rewards and introductory APR periods as the Rakuten Credit Card. However, it’s important to note that the redemption options and terms and conditions may differ from the Rakuten Credit Card.
Ultimately, comparing each credit card’s features, rewards, and fees is essential before deciding the right option for your financial needs and goals.
Maximizing the Benefits: Tips and Tricks for Avid Online Shoppers
The Rakuten Credit Card can be a valuable tool for avid online shoppers who frequently use Rakuten.com to purchase. Using the card, you can earn additional cashback rewards on top of the existing tips offered by Rakuten, which can result in significant savings over time.
To use the Rakuten Credit Card effectively, consider the following tips:
- First, use the card for Rakuten purchases: The card offers the highest cashback rewards on purchases made through Rakuten.com, so it’s best to use it for those purchases. You can earn up to 3% cash back on qualifying purchases made through Rakuten.
- Pay your balance in full: To avoid incurring interest charges, paying your balance in full and on time each month is crucial. This will also help you maintain a good credit score and increase your likelihood of getting credit approval.
- Redeem your rewards frequently: Rakuten rewards expire after 12 months, so it’s essential to redeem them often to avoid losing them. In addition, you can save your tips for cash back, gift cards, and other prizes.
- Keep an eye out for special offers: It offers promotional deals and discounts throughout the year, so be sure to check for these offers and take advantage of them whenever possible.
Ultimately, whether the card is worth depends on your shopping habits and financial goals. However, if you frequently shop through Rakuten and can use the card responsibly, it can be a valuable tool to help you save money and earn rewards.
The Final Verdict on the Rakuten Credit Card: is It a Good Choice for You?
In conclusion, the Rakuten Credit Card can be a valuable tool for those who frequently shop online and use the Rakuten website for their purchases. The card offers cashback rewards on top of the existing Rakuten rewards, and its no annual fee and introductory APR period make it an attractive option.
However, it’s essential to consider the high APR, limited redemption options, and no balance transfer offers before applying for the card. Additionally, the quality of Rakuten card customer service is an important consideration to keep in mind.
It may be worth it if you have good credit and can use the card responsibly. However, compare it to similar cards and consider your financial goals and spending habits before deciding.
