Rakuten Credit Card: Your Guide to Maximizing Cash Back Rewards

The Rakuten Credit Card, previously known as the Ebates Credit Card, is becoming increasingly popular among shoppers seeking lucrative cash back rewards. If you’re someone who loves saving money on your online and in-store purchases, the Rakuten Credit Card might be just what you need.

This review delves into how the Rakuten Credit Card works, its benefits, and whether it’s the right fit for your shopping habits.

Introduction to the Rakuten Credit Card

The Rakuten Credit Card is a compelling option for shoppers who want to maximize their savings through cash back rewards. With a strong focus on both online and in-store purchases, this card offers a range of benefits that can significantly enhance your shopping experience.

How the Rakuten Credit Card Functions

The Rakuten Credit Card comes in two variants: the Cash Back Visa Signature Credit Card and the Cash Back Visa Platinum Credit Card. Both cards offer similar benefits but differ in APR rates, with the Signature Visa ranging from 21.49% to 26.49% and the Platinum Visa fixed at 26.49%.

» Earning Cash Back

With the Rakuten Credit Card, you can earn 3% cash back on qualifying purchases through Rakuten.com, including in-store offers, Rakuten Hotels, and travel. Additionally, you earn 1% cash back on all other purchases where Visa is accepted. This structure makes it easy to accumulate rewards across a variety of spending categories.

» Method of Earning

To earn cash back for in-store purchases, you need to link your credit or debit card to the store via the Rakuten app before checkout. This ensures that your purchases are tracked, and the cash back is credited to your account.

Cash Back Visa Signature vs. Platinum

The main difference between the Cash Back Visa Signature and the Cash Back Visa Platinum cards lies in their APR rates. The Signature Visa has a variable APR ranging from 21.49% to 26.49%, depending on your creditworthiness. In contrast, the Platinum Visa has a fixed APR of 26.49%. Both cards offer the same cash back benefits, making the choice largely dependent on your preference for variable vs. fixed interest rates.

Cash Back Payment

Cash back rewards are paid out quarterly, either through a physical check or via PayPal. This quarterly distribution schedule means you’ll receive your accumulated rewards every three months, allowing for significant payouts over time.

Alternative to Cash Back

Instead of cash back, you can opt to earn American Express Membership Rewards points. This option allows you to convert your cash back into Amex reward points at a 1:1 ratio, providing flexibility for those who prefer to accumulate points for travel or other Amex-specific rewards.

Key Benefits of Rakuten Credit Card

The Rakuten Credit Card offers numerous cash back opportunities, including unpredictable offers and higher rates on certain purchases for a limited time. This dynamic reward structure ensures that you can maximize your savings on a wide range of purchases.

» Price Protection

One of the standout features of the Rakuten Credit Card is its price protection benefit. Within 60 days of purchase, if you find a lower price on an item, you can get a refund of the difference, up to $500 per item and $2,500 per year. This protection helps ensure you always get the best price on your purchases.

Travel Benefits

» Travel Deals

The Rakuten Credit Card provides access to special travel packages and vacation deals, particularly for trips to Japan. These deals can help you save on travel expenses, making it a valuable card for frequent travelers.

» Travel Protections

The card also includes travel accident insurance and an auto rental collision damage waiver, offering peace of mind when traveling. These protections can help cover costs in case of accidents or rental car damage, adding an extra layer of security to your travel plans.

Sign-Up and Additional Offers

» Sign-Up Bonus

The Rakuten Credit Card offers a modest $10 bonus on your first purchase. While this bonus is not as substantial as some other cards, it provides a small incentive to start using the card.

» No Annual Fees

The absence of an annual fee makes the Rakuten Credit Card an appealing choice for cost-conscious consumers. This feature allows you to enjoy all the card’s benefits without worrying about an additional yearly expense.

Who Might Not Prefer This Card?

The Rakuten Credit Card may not be suitable for everyone. Consider the following potential drawbacks:

» High APR Rates

The card’s higher APR range of 21.49% to 26.49% might be a concern if you tend to carry a high credit balance. If you are not able to pay off your balance in full each month, the interest charges could outweigh the benefits of the cash back rewards.

» Quarterly Cash Back Distribution

If you are impatient for cash back rewards, the quarterly distribution schedule might be a drawback. Some consumers prefer more frequent payouts, so consider whether this aligns with your expectations.

How to Maximize Rakuten Credit Card Benefits

To get the most out of your Rakuten Credit Card, follow these tips and strategies:

» Shop Through Rakuten.com

Make sure to make your purchases through Rakuten.com to earn the highest cash back rates. This includes linking your card to in-store offers and taking advantage of Rakuten Hotels and travel deals.

» Monitor Special Offers

Keep an eye on special cash back offers and promotions that Rakuten periodically provides. These offers can significantly boost your cash back earnings on select purchases.

» Use the Rakuten App

The Rakuten app is a valuable tool for tracking your purchases and linking your card to in-store offers. Regularly check the app for new opportunities to earn cash back.

» Consider Amex Points

If you are a frequent traveler or prefer points over cash back, consider opting for American Express Membership Rewards points. This flexibility allows you to choose the reward structure that best fits your lifestyle.

Conclusion

The Rakuten Credit Card is an excellent option for those who frequently shop online and in-store and are looking to maximize their cash back rewards. With its range of benefits, from price protection to travel perks, and the flexibility to choose between cash back or Amex points, it caters well to a diverse range of shopping needs.

However, its APR rates and quarterly cash back distribution might be considerations for some shoppers. Overall, the Rakuten Credit Card offers substantial value for savvy shoppers looking to save on their everyday purchases.