[Update: Some offers mentioned below have expired. You can view the current offers from our partners here — Capital One Quicksilver and Capital One QuicksilverOne. Disclosure: Cards from our partners are mentioned below.]
This may or may not be a good thing for Uber-addicted credit card users: The ride-sharing service just announced a deal that gives Capital One Quicksilver or QuicksilverOne credit cardholders a 20% statement credit when they pay for rides with that card.
The good thing: If you have the card or can qualify for it, you’re essentially able to get 20% off every Uber ride you take through April 2016, according to the announcement. The bad thing: Even with a 20% statement credit, you could drop some serious money on Uber rides, and the discount may encourage you to use the service more often than you did before.
Of course, that’s probably the business strategy at play here. Here’s what consumers need to know about the deal:
It’s a Yearlong Offer
The Quicksilver/QuicksilverOne 20% Uber statement credit ends April 30, 2016. Only accounts in good standing (and open, obviously) qualify for the credit. If you use Uber, you’ll need to make sure that card is selected as your payment option, otherwise you’re not getting anything back.
It’s a Rebate, Not Instant Savings
The 20% statement credit will appear on your account within one to two billing cycles, according to the announcement. That means you have to pay for the full-price ride first, and you’ll get 20% of that ride’s cost knocked off a future payment.
It Could Cost You
Consumers with excellent credit may qualify for the Quicksilver card, and those with average credit may qualify for the QuicksilverOne. The first card has a 15.24% - 25.24% (Variable) APR (after promotional financing ends), and the second has a 26.96% (Variable) APR, so if you don’t pay your statement balance in full, you could end up paying a lot more than you think you’re paying for those rides.
If you don’t have either of these cards right now, consider these things: Applying for new credit results in a hard inquiry on your credit report and will negatively affect your credit score a bit for six months. The Quicksilver has a sign-up bonus of $100 if you spend $500 on the card within the first three months. Both cards have promotional 0% financing until January 2016, and both offer 1.5% cash back on every purchase. The QuicksilverOne has a $39 annual fee.
The Uber deal seems to be a nice reward, particularly if you already have one of these cards, but if you’re considering opening an account in wake of this announcement, make sure you carefully consider how applying for and possibly adding this account will affect your credit profile. Before you apply for any credit, it’s always a good idea to check your credit scores — you can get two for free on Credit.com — so you have an idea of whether you meet the issuer’s credit score requirements. (And obviously, it’s counter-productive to apply for a card for which you’re unlikely to be approved. The hard inquiry will cause a small, temporary drop in your score.)
At publishing time, the Capital One Quicksilver and Capital One QuicksilverOne are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
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