Has anyone heard of the Zero Financial Card yet? I just signed up for the waiting list (it doesn’t launch until early 2017). I was wondering what other people thought of the card. I’ll put a link to the website here (
zerofinancial.com/early10289 ) (this is my referral link, which I speak more about below) but I’ll also include information/my analysis of the card below.
What it is- According to the website, Zero is a “mobile banking experience” that uses both an app and a Visa credit card that acts like a debit card.
A Credit Card- It’s a credit card in the sense that it earns cash back (more on that below). It is technically a credit card so it will help you build credit. Also, Zero offers fraud protection that protects you from unauthorized charges.
A Debit Card- It’s like a debit card in the sense that the money is withdrawn from your Zero account at the moment the sale is made. So you don’t have to worry about paying a bill or spending more money than you have in your account. Just like a debit card you can also withdraw money from ATMs. Zero says it has a partnership that will allow its users to withdraw cash for free from over 50,000 ATMs. No word yet on which ATMs though other than the fact that they are not associated with any banks.
A Deposit Account- The website also says that you will receive high interest on deposits that are held in Zero, but it doesn’t give anything more specific. Deposits are FDIC insured up to $250k.
Cash Back- There are four different levels of Zerocard from 1%-3%. To advance to a higher level you need to meet a minimum spend ($25k to earn 1.5% (Graphite), $50k to earn 2% Magnesium), and $100k to earn 3% (Carbon)). Alternatively, if you refer 5 people to Zerocard and they actually sign up for the card, you’ll earn the 3% status ( the link above is my referral link). If you read the fine print, though, it states that the status you earn is only good for the remainder of the calendar year plus the next calendar year.
The website also says that once you reach the 3% cash back status, you can continue to earn $100 per person that you refer to use the card. Again, read the fine print: the person must sign up to use the card, make two purchases on the card and make two direct deposits using Zero.
Unanswered Questions I have:1. Can I use Zero in a store that only accepts debit?
2. What interest rate will I earn on deposits made to my Zero account?
3. Which ATMs will charge $0 for withdrawals?
4. Is zero available only via mobile apps, or can I access it on my PC?
[I’ve emailed these questions to Zero and will edit the post when I get a response]
Why I may not use the card:1. Even if I advance to the 3% cash back level, I’ll only maintain that status for less than 2 years.
2. I’ll never put $25000 on a card in one year so will be stuck at 1% cash back.
3. One of the benefits of a credit card is that I can dispute a charge before I pay my credit card bill. With Zero, the money will be withdrawn from my account before I can dispute it. This makes me nervous.
Why I may use the credit card:1. I am a member of a food cooperative that only accepts debit cards. So I always carry around with me my credit card for everyday purchases, and my debit card for use at the cooperative. If Zero does both, that would be convenient.
2. I won’t have to worry about paying my bill.
3. I may get up to 3% cash back for two years. After that I would still get at least 1% cash back.
4. I don’t spend enough money to earn serious rewards on even the best credit cards. So it doesn’t really matter too much which credit card I use in terms of ongoing rewards. I would rather focus on having a convenient card like Zero for everyday purchases.
What do you more seasoned credit card experts think of the card??
