BlockFi Rewards Visa Signature Credit Card Review

Blockfi has recently announced the closure of its platform. This has come as a shock to many users as Blockfi was one of the leading platforms for digital asset finance.

One of the strongest standpoints of this card is that it has no yearly maintenance costs. Regarding Bitcoin rewards and credit cards, does the BlockFi card succeed or fail to set the bar? The card receives 1.5% rewards on all purchases, which can be redeemed monthly for Bitcoin, Ethereum, Litecoin, or another cryptocurrency of your choosing in your BlockFi account.

Similar to a cash-back credit card, this one is used to buy cryptocurrency monthly. Remember that you will not receive your cryptocurrency incentives in real time, preventing you from strategically buying more of your favorite cryptocurrency when its price is low.

With this card, you can get 0.25 percent cash back in cryptocurrency on all cryptocurrency trades, 1.5 percent cash back in cryptocurrency on all purchases, and 2 percent cash back in cryptocurrency once you spend $30,000.

Users of BlockFi can get a bonus of up to 0.25 percent of their monthly trading volume in crypto (up to a maximum of $500) when they use the BlockFi credit card.

If you’re looking for a credit card that earns Bitcoin rewards, seek elsewhere unless you’re already significantly engaged in the BlockFi network, as its rewards rate is lower than many cash-back credit cards, there are no bonus categories, and rewards aren’t issued in real-time.

BlockFi Credit Card – Summary

What is a BlockFi Credit Card?

BlockFi, launched in 2017 and headquartered in New Jersey, is a cryptocurrency financial institution that provides various services, including a cryptocurrency interest account, digital wallet, lending service, and trading platform.

Using the BlockFi Rewards Visa® Signature Credit Card, you can earn rewards at any merchant that accepts Visa. Earned points are automatically converted to cryptocurrency. (As of this writing, it occurs every other Friday.)

You will receive one cent’s worth of cryptocurrency for every reward point, with the exact amount determined by the cryptocurrency’s market price at the time the redemption transaction is processed, less a margin of around one percent. If the current value of your cryptocurrency is roughly $99, a reward of $100 would be paid out in about $98 worth of cryptocurrency.

Therefore, if the price of cryptocurrency is low, you will receive a greater proportion of your reward points in cryptocurrency each month, and vice versa if the price of cryptocurrency is high. However, you cannot influence the passage of time. Buying cryptocurrency with reward points is the only option available to users.

You’ll need to sign up for a BlockFi account before applying for a card, but once you do, you’ll be able to withdraw your rewards to a different cryptocurrency wallet or a traditional bank account. One cryptocurrency and one stablecoin withdrawal are free each calendar month on BlockFi.

How Does It Work?

Although the BlockFi Rewards Visa® Signature Credit Card’s rewards rate isn’t the best among flat-rate cash-back credit cards, it’s still respectable.

The main advantage is the possibility of receiving cryptocurrency incentives regularly. The rate of return may not be particularly impressive at the time of earning, but if cryptocurrency appreciates significantly, the benefits might become extremely valuable. The prizes could also decrease in worth, of course.

Credit pull offers

A preliminary pre-approval is sought before applying. Those who meet the requirements will be extended a customer offer.

A “soft pull,” or soft query, on your credit, is performed throughout the preapproval process and has no negative impact on your credit scores. If you decide to accept the card, the issuing bank will do a rigorous credit check, which could hurt your credit score like opening any other type of credit card account. The drop could be permanent or only a few points, depending on your credit history.

A BlockFi credit card does not damage your credit score. Although, you’ll need stellar credit before you can be eligible for a credit on BlockFi. According to BlockFi credit card requirements, the issuer prefers applicants with credit scores of 680 or higher. Deserve Inc., their underwriting partner, is responsible for deciding whether or not to grant credit. The loan is from Evolve Bank & Trust, the lending institution.

Your suggested credit limit and interest rate will be listed in the preapproval.

Averaging your spending across time

Regular usage of the card to earn rewards means you’ll make a small but consistent monthly investment in cryptocurrency, regardless of price. As an alternative to market timing and irrational investing, this approach is preferred by certain investors.

One drawback is that BlockFi only purchases cryptocurrency once per month rather than in real-time as you use the card. Thus, you have no say over when your cryptocurrency is purchased. Between the time you purchase with the card and the time you receive the crypto asset as a reward, the value of the crypto asset could have increased or decreased. That’s a major drawback of this card in some people’s eyes.

Payouts are mediocre at best

Alternatives to the BlockFi Rewards Visa® Signature Credit Card include using any other card to earn rewards and then utilizing that value to purchase cryptocurrency. In this way, you can schedule your purchases at your convenience. You might profit from the potential increase in value either way.

The flat 1.5% rewards rate for all purchases is satisfactory. Only after spending $30,000 in a year (as determined by the card’s anniversary) do you qualify for the second tier of rewards at a flat rate of 2%. Only the biggest spenders will be able to afford that.

For example, the Wells Fargo Active Cash® Card offers unlimited 2% cash back on all purchases, regardless of how much you spend. There is no yearly charge; new cardholders can earn $200 in cash back after making $1,000 in transactions during the first three months.

You may use the cash back on that card to make instant purchases at any Bitcoin exchange.

The PayPal Cashback Mastercard® offers an unlimited 2% cash back on all purchases, or you could opt for rewards that are more readily converted into cryptocurrency. Using your existing PayPal account, you may purchase, sell, and store digital currency. The Venmo Credit Card, issued by Venmo’s sibling firm, can automatically buy cryptocurrency using cash-back benefits.

In addition to the first cryptocurrency credit card, you have several more options for gaining or exchanging incentives for cryptocurrency. When you set up direct deposit with your SoFi Credit Card, you’ll get three points for every dollar you spend in the first year. When deposited into an approved SoFi account, such as a SoFi crypto account, you can redeem those points at a rate of 1 cent per point.

Taxes And Fees

While this isn’t directly tied to a card function, it’s important to remember that you may be required to pay taxes on any profits from selling cryptocurrency. That’s not the case with other rewards credit cards, which can get you to cash back, points, or airline miles. The value of these benefits is equivalent to a rebate on future purchases made using the card.

To aid in tax filing, your BlockFi card account will keep a history of purchases and monitor the cost basis automatically. However, BlockFi does not provide personalized tax services.

Promo & Bonus

This card is not suitable for those seeking cash rebates. This card is not for you if you prefer to buy cryptocurrency when and how you please.

The BlockFi Rewards Visa® Signature Credit Card is a good choice if you want to invest in cryptocurrency but don’t want to spend a lot of time learning how it works.

Welcoming Offer

While there is no standard welcome bonus for the BlockFi Rewards Visa Card, new cardholders can still benefit from a higher rate of 3.5% back in cryptocurrency for the first 90 days. Spending slightly under $3,000 within that period will get you the maximum cash-back incentive of $100. Beyond that point, the regular rate of 1.5% applies to purchases.

Crypto trading bonus

Every qualifying trade you make through BlockFi will earn you 0.25 percent back in cryptocurrency, up to a monthly limit of $500. In cryptocurrencies, maximum participation requires a monthly trading volume of $20,000, or $240,000 annually.

BlockFi Credit Card Rewards

First and foremost, BlockFi credit card benefits are one reason you should get the card. It gives impressive incentives.

The primary benefit of using this credit card is the accumulation of cryptocurrency rewards. You can choose to get rewarded in Bitcoin or any of the other cryptocurrencies supported by BlockFi, one of the best crypto lending sites. To name just a few of the more than ten varieties of cryptocurrency that fall under this category: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Uniswap (UNI), and USD Coin (USDC). In addition, you may gain access to borrow BNB as a cardholder.

BlockFi doesn’t feature as many digital assets as some of the best cryptocurrency exchanges, but you’ll still have a good amount to choose from. With a BlockFi interest account, you may earn interest on your cryptocurrency assets and also get to borrow Cake and other assets.

You have till the end of the month to make any necessary adjustments to your crypto rewards. Your card will be credited with that cryptocurrency on the next month’s second Friday rewards payout.

Indefinite 1.5% back

For all purchases, the BlockFi Bitcoin credit card offers 1.5% cash back.

Technically, you’ll rack up 1.5 points for every dollar spent. Once a month, BlockFi will convert your points into the cryptocurrency of your choosing at the going market rate. If you have a rewards account, it will transfer the cryptocurrency there.

Suppose, for the sake of argument, that you opt for Bitcoin rewards after spending $1,000 on your BlockFi Rewards Visa® Signature Credit Card. In exchange for your 15 points, you would receive $15 in Bitcoin upon incentive delivery.

Spending incentive every year

After hitting the $30,000 mark in annual spending, you’ll earn 2% cash back on all eligible purchases. The date of your card’s anniversary is used, not the calendar year, to calculate this bonus. There’s also a BlockFi referral code for its users to use and then they get rewarded.

The financial incentive for trading

On all trades that qualify, cardholders will earn a 0.25% Bitcoin trading bonus. You can receive up to $500 in Bitcoin monthly as a bonus. While 0.25 percent isn’t going to get you very far in the world of Bitcoin, it will help you stockpile more cryptocurrency.

There is no yearly charge

The BlockFi Rewards Visa® Signature Credit Card is offered without an annual charge. BlockFi’s original price estimate for this card was $200, which is ridiculously excessive considering what you get with it. Thankfully, the marketplace considered customer feedback and modified it.

There will be no additional fees for international transactions.

For purchases made in a foreign country, you can use this card worry-free because there are no associated fees. Sometimes, using a credit card abroad will incur a fee, normally around 3 percent. Thank goodness this BlockFi rewards card doesn’t.

If you are interested in NFT lending platforms, check out our review on that topic.

Can NewYorkers use this card?

It is important to note that at the time of this writing, residents of the state of New York cannot apply for this card. Hence their BlockFi credit card approval odds is zero.

BlockFi does not have the required BitLicense to operate in New York. That makes it impossible for those living in New York to sign up for BlockFi and apply for a credit card.

What to do with crypto platforms is a question that other states are still debating. A spokesman for BlockFi stated that as of the time of this writing, residents of Kentucky could apply for a BlockFi Rewards Visa® Signature Credit Card. Still, rewards will be credited to their “BlockFi crypto wallet,” a new non-interest-bearing crypto wallet.

Comparison With Other Cards

• Cashback

If you’re open to cash rewards instead of crypto: The Wells Fargo Active Cash® Card has a higher rewards rate, as it earns 2% cash rewards on purchases. You won’t earn crypto, but you could always use those cash rewards to purchase crypto.

In addition, with Nexo Card, you can make linking to your cryptocurrency wallets. Then, whenever you use your cryptocurrency holdings to make regular purchases, you will be rewarded with up to 5% cashback in cryptocurrency.

BlockFi Card Alternatives

Binance Visa Card Editor's Score: 5/5 Annuel fee 0% Crypto Rewards 8% Cashback Promo Offer Up to 1,000 BUSD in Rewards Apply Read Review

Nexo Card Editor's Score: 5/5 Annuel fee 0% Crypto Rewards 2% Promo Offer $100 Welcome Bonus Apply Read Review

Spectrocoin Card Editor's Score: 5/5 Annuel fee €1.15 Crypto Rewards No Promo Offer No Apply Read Review

• Big bonus rewards

The Citi Custom Cash℠ Card offers bonus cash back based on your spending habits. This rewards credit card earns 5% back in your top eligible spending category each billing cycle, with a bonus spending cap of $500 per billing cycle.

Conclusion

So, after you’ve signed up for BlockFi and are now searching for a simple method to start collecting your crypto rewards.

Value is provided through the BlockFi credit card rewards and absence of fees on the BlockFi Rewards Visa® Signature Credit Card. Since it can be used easily with a BlockFi account, it makes sense for those using the service. BlockFi is only one of several excellent credit cards with comparable perks for those who don’t care.