Upgrade MyFive “Credit Card” Review (New Card, 5% Category of Your Choice)

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Features

• Every month, you can choose one category from the following to earn 5% cash back, with a quarterly cap of $3,000:
  • Groceries
  • Dining
  • Drug Stores
  • Travel
  • TV, Internet, and Streaming Services
  • Cell Phone Providers
  • Pet Care and Stores
  • Home Utilities
• All other purchases earn 1% cash back.
• No annual fee.

Disadvantages

• No sign-up bonus.
• The interest calculation method for this card is different from that of regular credit cards. Be cautious! Details are provided below.

Special Interest Calculation Method

Technically, this card does not seem to be a “credit card” but rather a “Personal Credit Line” with an associated card for spending. Therefore, the interest calculation differs from that of regular credit cards.

Typically, credit cards issue a statement first, followed by a grace period of 21-25 days after the statement date, then the payment is due. As long as you pay the full amount by the due date, no interest is charged; even if you pay only the minimum payment, interest is only calculated from the due date.

However, this card is different. By default, interest starts accruing from the day of purchase! The card offers a method to avoid interest called “EarlyPay.” As I understand it, this means that you can choose to pay the full amount within 2 days of the statement being issued, which allows you to avoid interest on the next statement period. If you only make the minimum payment, interest will still accrue from the day of purchase. This is my understanding based on reading the terms, and I welcome anyone to share firsthand data point.

Your card offers you an early repayment option to avoid interest. After your first statement period, interest will generally accrue daily from the day a transaction occurs. With EarlyPay, you can choose to pay off your statement balance in full two (2) days after your statement period ends, so that you’ll pay no interest on transactions for your next statement period. Or, you can make your required minimum monthly payment on your monthly due date, which is twenty-two (22) days after your statement period ends. If making the minimum payment results in any carryover balance from one statement period to the next, all balances will accrue interest for the next statement period. You can pay off your line at any time to eliminate further daily interest.

Therefore, if you use this card, be sure to pay off the full amount within 2 days of the statement being issued. If you habitually only pay the minimum, this card can be a significant pitfall for you, and it is advisable not to apply for it!

Is there an option to set autopay to automatically pay the full amount within 2 days? If so, then it’s only a matter of setting it up initially, and using the card thereafter would be no different from using a regular credit card.

Summary

This card offers great 5% cash back categories, such as groceries, dining, and drug stores, which are all very practical. Compared to other 5% cash back cards like Freedom/Discover, the advantage of this card is that you can choose the 5% category each month instead of waiting for the bank to decide. This allows you to maximize the benefits of the category. Additionally, the 5% cap on this card is higher than that of the Citi Custom Cash, which is very impressive.

The interest calculation on this card is tricky. If you plan to apply, make sure you pay attention to the payment dates to avoid paying interest and being taken advantage of.

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