You can now redeem rewards for crypto on daily credit card purchases. BlockFi, a cryptocurrency trading platform, announced that it would launch a new credit card in December 2020. Since then, the waiting list has grown to hundreds of thousands of crypto enthusiasts who are eager to earn cryptocurrency rather than cash back or rewards.
Seven months later, BlockFi began to release the BlockFi rewards Visa(r) Signature credit card to selected members of their waiting lists.
It’s not too late, however, to join the frenzy. Waitlist applicants are still welcome to apply for the card. This card is not the same as a traditional credit card such as the Chase Sapphire Prreferred(r) card.
As it is still being rolled out to consumers’ wallets, the card has different requirements, features, and processes.
Blockfi Has Launched Its Crypto Credit Card
First, you will not be issued cryptocurrency directly. Instead, BlockFi Cryptocurrency Rewards points will be given to you. 1.5X points will be earned for every $1 spent on this card. Spend more than $50,000 within a 12-month period and you’ll earn 2X points for every dollar.
BlockFi will convert your points immediately into cryptocurrency once the points have been deposited and the cardholder account has been in good standing. This card earns you 1.5% in cryptocurrency for every dollar you spend.
Cardholders who are new can earn 3.5% in crypto rewards for all purchases within their first three months. This is however limited to $100 in crypto. This offer is modest compared to other credit cards sign-up bonuses.
You can earn additional rewards if you have the card and trade with BlockFi. All trades are eligible for 0.25%, with a maximum monthly limit of $500 in crypto. You can also earn $30 for every person you refer to this card.
There is no annual fee and foreign transaction fee for the card. It works on Visa networks.
Qualifying For The Card
The card is still on a waiting list and BlockFi has yet to release a timeline for when it will be available. Referring others to the waitlist can help you improve your position in line.
To join the waitlist, it doesn’t cost anything nor have any impact on your credit score. You can also be preapproved for the card by submitting a soft-credit pull. After you have applied for the card, a hard credit inquiry is recorded on your credit record.
According to BlockFi’s website, the card requires “good-to-excellent” credit.
The Card Has Some Limitations
This one is not like traditional credit cards. It is also limited geographically. Although there are not specific provisions in the terms and condition, it does indicate the rapid changes in cryptocurrency laws and that Block Fi may not be available in your particular state. At this moment, there is not an up-to-date list indicating which states are eligible.
Additionally, the terms and condition state that if you access the platform from outside the United States, you do so at your own risk. You are responsible for complying with all applicable laws in the country or jurisdiction in which you might be located.
The card cannot be used to add an authorized user or balance transfers, nor can it be used for cash advances.
The card is a good choice for those who don’t need travel rewards or cash back. Cardholders should be aware that crypto and cryptocurrencies can fluctuate in value and should prepare accordingly. This card allows you to passively earn crypto through your daily purchases.
A cash-back, or travel rewards card might be more suitable if you prefer a traditional rewards card. Cash back can give you more flexibility as you have the option of buying crypto, or you could use it for almost anything else.