You know that many credit cards offer great perks such as reward points, discounts and/or cash.
So, what is different about recently launched Vital Card you ask?
The newly launched Vital card is expected impact the credit industry in a major way. The Vital credit card, Visa backed, earns you cash back. But the cash back is for getting other members to sign up.
Vital Card, based in New York City, is a new concept envisioned by Chris Bridges, Chairman, and Vincent Bradley, CEO. The team members of the company have worked with Google, Charles Schwab, and other major companies. The mission of the company is to offer a credit card with a community-based rewards system.
How Does VITAL Credit Card Work?
VITAL is a credit card that offers referral-based cash rewards. For each person you get to sign up, you’ll earn VITAL points that determine your VITAL score. It gets even better because you will also get cash rewards when your referrals get additional users to sign up. Furthermore, you’ll get 1% cash back on all your purchases.
There is no cost to sign up for the card. When you sign up, you will get access to the VITAL potential earnings calculator.
The VITAL card requirements are:
- You must be 18 years of age or older. Residents of Nebraska and Alabama must be 19 or older.
- You must be a permanent resident of the United States.
- You must have a physical address in the US.
- You must pass a credit check.
The Vital card has few additional undisclosed qualifications to meet underwriting criteria. It is to be noted that signing up for early access is just the first step. You’ll need to fill out a full application during the late 2018 launch. In the meantime, you can start referring others and building your VITAL score.
Some may wonder what happens if you are denied the Vital card. Believe it or there is clarification provided by the company. Even though every single application is not approved, if you are eligible for most entry level credit cards, you are very likely to be approved. In the event you are not accepted, VITAL Card will let you transfer your VITAL Score to someone else with good credit. You can choose any friend or family member for this.
Once you get your own Vita card, you need to spend a minimum of $250 each month to be eligible to get cash rewards from your referrals. This can be achieved easily by using VITAL card for your basic monthly purchases – groceries, fuel, and so on. Then you need to pay it off each month to keep your credit in good shape.
How Will You Get Paid?
The money that is paid out comes from the VITAL cash rewards pool. Each month, 1% of user spending is added into the VITAL cash rewards pool. Your payment is dependent on your Vital score. Your VITAL score based on the number of VITAL points you earn. You earn points by referring friends and family to sign up for VITAL. Here’s a layout of the points system. I’ve used a small scenario to make it easier to understand.
- Direct Sign-Ups: You earn 4 points per person you get to sign up.
- Second Tier Sign-Ups: You earn 2 points per person when your direct referrals get others to sign up.
- Third Tier Sign-Ups: You earn 1 point per person when your indirect referrals get others to sign up.
To sum it up, your points are based on a basic three tier referral system. There’s no limit to the number of friends and family you can refer. This essentially means you have endless chances to keep growing your VITAL score. Simply put, the higher your score, the higher your monthly cash rewards will be.
There is no definite number that can be predicted how much any one can earn. VITAL adds up the total scores of every user at the end of each month. How much cash you’ll receive depends on two factors. It depends on your individual VITAL score and the overall size of the cash rewards pool.
However, Vital card provide a very detailed scenario. You can also access a VITAL potential earnings calculator once you sign up. It is recommended that you try out the calculator before you sign up.
The earnings to you will be distributed from out of the rebate pool, thus it is likely that your earnings may be tax-free. Check out the company statement. It is also recommended that you consult your accountant or tax representative.
In short, major points are divided into pros and cons list to keep things simple:
- There’s no annual fee.
- You’ll earn 1% cash back on all of your purchases.
- The referral-based system is unlimited; you can refer and earn permanently.
- Earn cash rewards when your referrals get new users to sign up.
- You can build your credit score with responsible use.
- Your referrals only must spend $1 per month for you to keep earning.
- To keep earning rewards, you need to spend $250 per month or more.
- It’s possible that your application will be denied after prelaunch.
- The amount of cash you earn each month will fluctuate.
Verdict: Is the VITAL Credit Card Worth It?
If you use the VITAL credit card responsibly, Vital card offers a great opportunity. You earn cash back on purchases and cash back for referrals. That means there’s a lot of potential to make extra money with very little effort.
Subscribe To Our Free Newsletter.