Should I Get the Robinhood Gold Credit Card? [March 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 other 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 be 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. The Gold Credit Card was one of the new products announced.

Let’s get into the details:

• 👉 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 of in the industry. Usually 2% cash back is the gold standard.

They sure raised it.

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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. 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?

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.

With the 3% cash back on all categories, every $1 will get you 3 points. Unless you spend it in the Robinhood Travel Portal — then every $1 will get you 5 points.

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 can allow each point 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. 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 partners available directly through the app for you to “spend” the points at. 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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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.

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 make 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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This article is for educational purposes and not financial advice. Please consider consulting with a licensed professional before making any financial decisions.