The home improvement financing platform GoodLeap has revealed a new home equity line of credit (HELOC) credit card that also offers cashback rewards.
About the GoodLeap Home Visa Signature Card:
Today, GoodLeap announced the impending launch of the GoodLeap Home Visa Signature Card. Issued by Cross River Bank, the GoodLeap Home Card combines features of a HELOC with the rewards of a cashback credit card.
The headline feature of the new product is the ability for cardholders to earn 6% back on home projects. However, this category is limited to “qualifying home projects initiated in the GoodLeap Home app.” All other purchase categories earn 1% back by default — although eligible everyday purchases can earn 3% back after customers spend at least $2,000 or more on their card during a billing cycle. This rate is capped at a total of $30,000 in spending in a 12-month period. Also, note that cashback redemptions have a minimum of $25.
Beyond the cashback, GoodLeap notes that the HELOC model means that customers can access up to $150,000 in credit with the card (depending on eligibility). Additionally, the card could offer lower interest rates compared to unsecured lines of credit.
The GoodLeap Home Card has no annual fee and can be used wherever Visa is accepted. Those interested in the card can join the waitlist on GoodLeap’s site.
What They’re Saying:
Discussing the new card, GoodLeap’s Chief Operating & Strategy Officer Dan Lotano said, “A homeowner who just spent $20,000 upgrading their HVAC system shouldn’t be earning a few airline miles on a credit card with an average APR north of 20%. They should be earning meaningful cash back on the thing that just made their home more valuable.”
He continued, “If you’re a homeowner with equity, you’ve likely been paying too much and earning too little. The GoodLeap Home Card changes that. We built a card for your house, not just one backed by it.”
My Thoughts:
I’ve actually used GoodLeap in the past, taking advantage of a “six-month, no interest” offer to finance the purchase of our water heater replacement. However, that doesn’t mean that I know what it means to initiate a project in the GoodLeap Home app. Therefore, it’s hard to say how easy it would be to earn that top-rate 6% back on the home projects you have in mind.
What may actually prove to be the more interesting aspect of the card is that 3% back offer. That said, looking at the wording on the card’s website, it sounds as though purchases made after reaching that $2,000 in spending per billing cycle earn the 3% (“After $2,000 in a billing cycle, earn 3% on additional eligible purchases up to $30K in a 12-month period”). Because of this, maximizing this offer could get a bit hairy, and it means that you wouldn’t truly be earning 3% across the board. Instead, for example, if you spent $4,000 on the card in a month, you’d effectively earn 2% back. So, unless you’re spending an awful lot on the card each cycle, it’s not really as great as it seems at first blush. Of course, if I’m wrong about what the wording implies, then never mind!
Nevertheless, as someone who owns a home and has some projects to get done, perhaps a HELOC card like this could make sense for us in the future.
