Xbox Credit Card – Is This Card Worth It for Gamers?

The newly launched Xbox Credit Card has been causing quite a stir among avid Xbox gamers. With tailored rewards and benefits aimed directly at fans of the popular gaming console, it seems like an exciting new offering. However, as with any credit card, it’s important to read and understand how it works before applying.

In this article, we will explore everything you need to know about the Xbox Credit Card to decide if it’s right for you or just a bunch of hype.

An Overview of the Xbox Credit Card

The Xbox Credit Card is a new credit card launched in 2023 in partnership between Microsoft and Barclays Bank. Some key facts about the card include:

No Annual Fee: There is no annual fee to use the Xbox Credit Card
Rewards for Xbox Purchases: You’ll earn 5x points per $1 spent in Xbox stores and 1x point per $1 on other purchases
Welcome Bonus: New cardholders get 5,000 bonus points (worth $50) after the first purchase, plus 3 free months of Xbox Game Pass Ultimate
Credit Required: You’ll need a good credit score to qualify for the best rates and terms

So in a nutshell, it’s designed specifically for people who frequently make Xbox-related purchases. The rewards system heavily incentivizes spending within the Xbox and Microsoft ecosystems.

The Rewards Program

The main selling point of any credit card is its rewards program. So what exactly can you earn with the Xbox Card and what can those points be redeemed for?

Earning Rates

You’ll earn rewards points at the following rates with the Xbox Credit Card:

5X points per $1 spent at Xbox Stores, Microsoft Store, Xbox Game Pass, Xbox Live Gold, etc.
3X points per $1 spent on dining delivery services and streaming services
1X point per $1 spent on all other purchases

So Microsoft wants you to use this card for all Xbox and Microsoft-related purchases. You’ll rack up points 5x as fast when shopping on Xbox platforms.

The 3x points for dining delivery and streaming services are also relevant for a gaming audience.

Redeeming Rewards Points

Your accumulated points can be redeemed in a few different ways:

Digital Xbox content (games, memberships, movies, etc.)
Microsoft gift cards
Xbox Mastercard gift cards

Each point you earn is worth roughly 1 cent, and points can be redeemed in increments of at least 1,500 ($15 value).

One limitation is that you can’t redeem points for Xbox hardware purchases. So don’t expect to earn a free Xbox console with this card. The rewards are mostly useful for digital gaming content.

Benefits Beyond Rewards

Aside from the rewards program, the Xbox Credit Card comes with a few other gaming-focused perks:

3 Free Months of Xbox Game Pass Ultimate

New cardholders get a promotional code for 3 free months of Xbox Game Pass Ultimate after their first purchase. This subscription service normally costs $15/month, so it’s a nice added incentive worth about $45.

Choose a Custom Card Design

You can select one of five specialty Xbox Credit Card designs when you apply, featuring different Xbox-themed artwork. And for a more personal touch, you can even add your Xbox gamertag which will appear on the card!

Special Financing Offers

From time to time, expect special 0% APR financing offers for Xbox purchases when using the card. This allows you to finance a large purchase over several months interest-free.

Potentially High-Interest Rates

One downside of branded credit cards is they sometimes come with higher interest rates. The Purchase and Balance Transfer rates for the Xbox Card are:

Purchase APR: 20.99% – 31.99% variable
Balance Transfer fee: 5% or $10 minimum

So rolling balances month-to-month will negate any rewards earned. Try to pay in full each month.

Rewards are Limited to Xbox

While it may be obvious, do note that Xbox points can only be redeemed for Xbox or Microsoft-related purchases. If you want more flexible rewards, a general cash-back card may be better.

Consider Overall Spending Habits

Since this is an Xbox ecosystem-specific card, think about what percentage of your total spending would earn the 5x enhanced rewards with this card. If only a small portion of monthly expenses would qualify, a different card may get you better overall value.

So assess your larger spending habits before deciding if this card fits your lifestyle.

Factors to Consider Before Applying

This card is catered specifically to gaming and Xbox loyalists. But before you apply, here are some other factors you may want to consider.

Credit Score Needed for Approval

Like most unsecured cards, you will need a good credit score for the best approval odds and terms with the Xbox Card. Expect approval requirements around:

Credit Score: 700+
Income: $40,000+

Actual requirements may vary depending on your full credit profile. But great credit means better chances for approval.

How to Apply for the Xbox Credit Card

To apply for the Xbox Credit Card, you can visit the official application page at: https://www.xbox.com/en-US/xbox-mastercard

The application process only takes a few minutes. You’ll need to provide basic personal information and your income source to begin the eligibility verification process.

Xbox Credit Card Eligibility Requirements

To qualify for approval for the Xbox Credit Card, here are some of the published eligibility standards:

Good credit (700+ FICO score recommended)
Personal gross income from all sources of at least $24,000 a year
18+ years of age
Valid Social Security Number
Permanent U.S. resident

Meeting these minimum requirements does not guarantee approval. But they provide a good benchmark of what to expect during the application process.

How to Logging Into Your Xbox Credit Card Account

Once approved, you can manage your new Xbox Credit Card completely online through the account login portal: https://www.xbox.com/en-US/xbox-mastercard

This is where you can check statements, make payments, redeem rewards, and more.

Bookmark this page to easily log in to your Xbox Card account dashboard. You’ll log in using your full account number and the last 4 digits of your SSN as the password.

Alternatives to the Xbox Credit Card

The Xbox Credit Card certainly offers some nice perks for avid Xbox gamers. However, it may not be the most optimal choice for all consumers depending on spending habits and credit profiles.

Here are a few potential alternatives worth considering:

Chase Freedom Unlimited®

The Chase Freedom Unlimited® earns 1.5% back on all purchases. Popular as an “everyday” card with solid earning potential. Also, consider the Chase Freedom FlexSM for its 5% quarterly bonus categories.

Capital One SavorOne® Cash Rewards

Earns 3% cash back on entertainment, dining, streaming services, and groceries – making it a popular choice for those bonus categories.

Citi Custom CashSM Card

Earn 5% cash back automatically on your highest eligible spend category each billing cycle (on the first $500 spent, then 1% back). No need to activate bonus categories.

The best card for you depends on your priorities, credit score, income and full financial picture. Be sure to read card agreements fully and consider consulting a financial advisor if unsure!

Is This Card Worth It for Gamers?

For die-hard Xbox fans who know they’ll use Xbox Game Pass, purchase lots of games regularly, and want gaming & Xbox-related perks, the tailored rewards of this new credit card will likely outweigh any annual fee. You’re probably already spending hundreds or thousands on Xbox, so may as well earn some bonuses!

However, more casual gamers may find better value in a flat-rate cashback card that offers rewards on ALL your purchases instead of just Xbox products.

Run the math and think deeply about your unique situation before completing an application. Be realistic with your expected monthly Xbox expenses. As with any credit card, make sure to pay statement balances in full each month so interest charges don’t eat away at rewards earned!

Conclusion

The Xbox Credit Card offers a few gamer-friendly perks that may appeal to avid Xbox loyalists. However, its niche focus on Microsoft products means other general rewards cards could be a better daily option for some consumers. Take time to fully assess your finances and spending tendencies before completing an application.

As with any credit card, remember to use it responsibly, pay the statement balances in full each month, and enjoy the perks.