Lyft Credit Card Coming Soon

Lyft

While the details are perhaps less than scant, it has been reported that a “Lyft credit card” is expected to be rolled out in the near future.

The co-branded credit card will likely offer a rewards program and/or discounts on the popular ride-sharing app.

It’s unclear who the card issuer will be or which payment processor will be used, but we can take a stab at it based on their corporate image.

Could Lyft Partner with Discover?

When I first heard about the possibility of a Lyft credit card, I began to think about who might partner with them, or perhaps who Lyft would want to align with.

Sure, they’re still very much corporate and tied to General Motors, but they also have a kind of indie charm.

That’s why I wouldn’t be super surprised if they partnered with a credit card issuer like Discover, which is also appealing to the youth with silly ad campaigns and stellar customer service.

While you might scoff at the idea, knowing Discover doesn’t have any co-branded credit cards, that could be exactly why Discover would partner with Lyft.

It would bring in a whole new slew of customers and give Discover the opportunity to market their other offerings, such as Discover bank accounts.

Of course, I could be wrong. The reason Discover doesn’t have co-branded credit cards is probably because they aren’t accepted at as many places as Visa and MasterCard.

I will say that I doubt American Express will be the issuer because they’re already tied up with Uber, and they tend to cater to the high-end.

Lyft seems to be a ride-sharing app of the people, and thus wouldn’t partner with a luxury card issuer.

And because Uber and Barclaycard appear to be linking up, it likely won’t be the latter.

That still leaves a lot of possibilities, including Capital One, which is certainly a contender, Chase, Citi, and perhaps even Bank of America.

What Will the Lyft Credit Card Offer?

Again, details are escaping us here, but my guess is a rewards program that allows all spending to be converted into Lyft credit.

Perhaps you’ll be able to earn 3X per dollar spent at Lyft, and 2X on gas and groceries, and 1X on all other eligible purchases.

You’ll then be able to redeem your points for free Lyft rides at the best redemption rate, or get slightly devalued redemptions for things like cash and gift cards.

Not sure about a sign-up bonus, but something nominal like $50 or $100 could be in the cards.

I don’t know if I would apply for a Lyft credit card unless it offered some really big perks because there are other cards, such as Chase Freedom, that typically provide 5% back on ride sharing during the year.

There are also specials on Uber and Lyft gift cards all the time.

So opening a new card just to get a small discount likely wouldn’t do it for me.

Conversely, if you use Uber or Lyft a ton, it could make sense to put all the purchases on a card earning a solid cash back multiple year-round.

Should be interesting to see what happens on this front, and which company Lyft ultimately partners with.

Stay tuned!

(photo: Sergio Ruiz)

Author: Colin Robertson

Colin created this blog after spending several years in a job that required him to scour credit reports on a daily basis. His goal is to help individuals better understand their credit and get the most out of credit cards.

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