If you have been considering adding a PayPal or eBay credit card to your wallet, now might be a good time to make the move.
Both companies have temporarily upped their welcome bonus offers for select new credit card applicants.
Let’s take a closer look at each of these promotions to see if they could be a fit for you:
PayPal Is Offering 4% Cash Back to Select New Cardholders
An email I recently received from PayPal immediately caught my attention. It was promoting 4% cash back on everyday purchases for the first 90 days for new cardholders who sign up by October 5, 2020.
Some important details on that offer:
- Not everyone will qualify. As you’ll see in the screenshot below, it appears I was targeted for this offer “based upon” my “PayPal history.” If you visit the website for this credit card, you’ll notice that the offer is nowhere to be found. That likely means it’s a promotion targeted only at certain existing PayPal customers.
- You’re capped on your total spend. While the offer doesn’t appear to limit the type of purchases that qualify for 4% cash back during that 90-day introductory period, it does limit the amount of money you can earn. There’s a cap of $5,000 in spending on the 4% cash back, which gives you a total earnings potential of $200.
It is worth noting that the PayPal Cashback Mastercard compares pretty favorably to most other cash back credit cards on the market. The standard 2% cash back on all everyday purchases is among the best in this card category.
And if you’re a frequent PayPal user, you’ll probably appreciate that your cash back rewards can be transferred immediately to your PayPal account balance, so you’ll get immediate cash-value purchasing power.
eBay Offers Limited-Time, 30-Day Welcome Bonus
If you’re a frequent buyer on the popular e-commerce website, the latest offer for the eBay Mastercard may be enough to consider taking the plunge.
I recently got an email with a new welcome bonus offer for the eBay Mastercard. This latest offer comes in the form of a $150 statement credit if you spend at least $500 on purchases with the card within 30 days of opening the account.
But you have to act pretty quickly to get this one: It’s available only to new cardholders who sign up by August 21, 2020.
Some things to consider for this offer:
- You must have an active eBay account. This is a prerequisite for applying for the credit card at all. Of course, this shouldn’t be too big of a hurdle for someone with an interest in an eBay-branded credit card in the first place.
- There is no eBay spending requirement to earn the bonus. Unlike some promotions advertised on this credit card in the past, this one does not require that your $500 be spent on eBay itself. You can make qualifying purchases anywhere Mastercard is accepted.
If you’re comparing the two cards, it is worth noting that the eBay Mastercard operates on rewards points rather than cash back rewards. And these rewards are heavily skewed toward eBay purchases, so you’ll probably need to be a pretty serious eBay shopper to consider this one over some other card on the market.
The rewards points have a 3-times multiplier for your first $1,000 spent at eBay each year and increases to 5-times bonus points for every dollar spent beyond $1,000 in a year. The card also offers 2-times rewards on gas, restaurant and grocery purchases.
When it comes to picking a new credit card, money expert Clark Howard says you should avoid placing too much emphasis on the welcome bonuses.
“I never want people to be so enamored with the sign-up bonus that they end up with a card that over time will ultimately under-reward,” Clark says.
“The credit card issuers are making an assumption that you’re going to be really profitable over time for them. So often the bonus will be really generous, but the card itself will be pretty rotten.”
In the case of both cards, you’ll want to make sure your appetite for them goes beyond these welcome offers.
I’d recommend the PayPal card for consumers looking for an everyday cash back credit card. Even after the 4% intro period, it has a very solid 2% cash back on all purchases. The one disappointing aspect of this card is that it doesn’t do much to reward the frequent use of PayPal products.
If you’re interested in the eBay card, I’d recommend that you examine your eBay spending habits closely. Since so much of that card’s value is tied up in reward-point multipliers for eBay purchases, you’re likely going to need to spend an average of more than $100 per month on eBay to see real value in the card.