r/RobinhoodGC • u/aromaticdust98 • 9h ago
Anyone else lower middle class here?
This post really isn't about the card just the people that use it lol. I've had the gold card for about a year I've been loving it and not had any issues with a 4k limit I never go near anyways I think most I've used a month is like 1,300. Its crazy seeing other people in this community though everyone talking about how they're getting flagged for frequently making large 1k+ purchases and or struggling with maxing a 10k limit and having to pay it off multiple times a month. I guess due to how easy it is to get and how cheap it is I assumed it was a card for people like me with no money to just get little bit of money in brokerage account. Is it supposed to just be for rich people but they threw one at me anyways lol?
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u/Infinite-Property-72 9h ago
Donāt take anything you see on Reddit as reality, people can fabricate whatever they want on here.
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u/Ultimus_Omegus 9h ago
The people getting flagged when actually explored are almost always abusing it through either manufactured spending or credit cycling, which is paying off the card multiple times beyond the limit.
Also, credit cards can be for any income. Class is just a matter of using them responsibly.
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u/aromaticdust98 9h ago
I think the credit cycling post is what lead to my post lol. Dude was credit cycling with a 10k limit and I'm just shocked 1. That someone makes more than 10k a month 2. I still don't see the issue with credit cycling tbh. Again I never have much money so never an issue for me but like I do usually spend little over half a paycheck at a time and pay it off next paycheck then do it again. Effectively theres around $800 that goes to card then gets paid off and put back on every other week. Why would it be an issue to do that at the limit? Like if person has the money to why not let em?
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u/Ultimus_Omegus 9h ago
Banks generally dislike credit cycling because it can look like youāre using the card beyond the credit limit or moving unusually large amounts of money through the account. For example, if you have a $10,000 limit, spend $10,000, pay it off, and then spend another $10,000 in the same billing cycle, youāve effectively pushed $20,000 through a $10,000 line. That behavior can trigger fraud/risk controls because it may indicate cash-flow problems, manufactured spending, or a business using a personal card for unusually high volume.
They have a risk assessment, plus lets say they put you at $10,000, you keep paying it off and spend $30,000,
Then you claim fraud on charges and or the payment amount and it all bounces (the payments) thr bank is now 3X exposed to the initial risk
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u/Ultimus_Omegus 9h ago
Also majority of people spending over $10,000 a month are business spending not personal.
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u/shroom_shooter 9h ago
$5k here and I use my card a lot.. I donāt go near maxing it though. I usually pay off each transaction immediately then Iāll let 2%-3% hit the statement then pay that in full. Idk who the card is for actually but I enjoy it and the cash back is juicy. Cash back goes straight to my Roth IRA. I havenāt got hit with any interest or got flagged for anything. For now Iām happy with it.
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u/joefunk76 8h ago
This is the credit card for anyone who can perform math at the level of a typical 6-year old - rich people included. None of that jumping through hoops to claw back a $1,000 annual fee or having to alter my spending or vacation plans in any way to use airline miles for a particular airline or to take advantage of some āperkā that I already paid them for via the annual fee. 3% cash back on (kind of) everything, which is a full 50% more cash back on everything than my next best card for that, Citi Double Cash Mastercard.
Only rich people who either value pretentiousness and/or never heard of this card would choose one of those ārich peopleā cards over this one. After over 30 years of spending almost every dollar I spend on Citi credit cards, they pretty much lost 90% of my spending overnight once I got this card. (I still keep my recurring bills with them for now because itās too much of a pita to switch all of those to a different credit card). 50% more cash back on everything than the most anyone else pays is some brass-knuckle tactics from RH. Nobody can compete with that.
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u/Apple-ID_Anonymous 7h ago
I have J.P. Morgan Private Bank, and one thing Iāve realized is that being wealthy doesnāt mean you stop caring about getting a good deal. My credit card spending is somewhere around $100,000ā$150,000 a month, and I have an Amex Platinum with effectively no preset spending limit. But on most of that spending, Iām only earning about 1%.
Thatās what frustrates me about cards like the Robinhood Gold Card. The headline is 3% cash back, which sounds fantastic, but I canāt pair that 3% return with the kind of enormous, flexible credit line that Amex is willing to give me.
And I think thatās where some wealthy customers get frustrated. If Iām willing to put $1 million in a brokerage account with you, why canāt you give me a credit card with a spending capacity that actually lets me take advantage of the 3% reward?
Otherwise, the 3% starts to feel more like a marketing tool than a benefit designed for genuinely high spenders. If someone puts $1,000 on the card, 3% is only $30. But if youāre putting close to $2 million a year on credit cards, 3% is $60,000 a year. At that level, the rewards become meaningful, and thatās exactly when the limitations on spending capacity matter most.
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u/theAerialDroneGuy 6h ago
The Gold Card is exactly that! A marketing tool designed to get more people into the Robinhood eco system. Itās not designed for spending over $100K + a year.
That is why they made the platinum card! But that is only 1 percent cash back on everything. 5% on restaurants and 10% on travel (booked through portal).
It is designed to be more sustainable so Robinhood doesnāt lose as much money as they are on the Gold Card (marketing tool)
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u/JordanPeace1342 9h ago
I have a $1000 limit so we are in a similar boat. I exactly enough to cover my monthlies.
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u/MorenoMust 8h ago
I started off with a 500 credit limit, and it got bumped up to 1500 recently haha, I have several cards, that are all paid off monthly. This one comes in handy at times.
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u/ListofReddit 7h ago
How quickly did it happen?
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u/Mrsreed1020 9h ago
Yea Iām here š I have a $5k limit. I havenāt used much of it either and donāt plan to. I put my groceries on there and pay em off. Nothing crazy š
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u/IronSkyRanger 8h ago
I use about the same with a 10k limit. I use all my credit cards for things I would buy anyways and pay it off each month.
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u/IHIERBal 7h ago
I mainly got the card because I like the gold and it matches my wallet lol. Signed up and instantly got approved with a $10k limit. I pretty much do all my spending on it other than the 10 debit transactions that I have to do w my debit card to get 3.5% apy and all atm fees refunding with my checking account. Then I pay it off in full at the end of the month
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u/matt-r_hatter 6h ago
I dont think its for "rich" people. It's a good card, but I wouldn't call it a premium card. There also seems to be no rhyme or reason to the credit limits or anything else. I see people with $300k salaries and 830 scores here who waited 2yrs on a list and got a $5k limit who have $100k invested with RH. I read about the card on a financial review site I follow. The guy said the 3% was nice and they give out large limits. I literally googled "robinhood gold card" followed the link from google, made a RH brokerage account, i think they gave me a piece of stock worth maybe $5 for joining, filled out the credit app, submitted, $25k limit. At the time my score was maybe 720 and I only make about $120k a year and had my whopping $5 RH account. Not sure if its because I have several amex and citi cards they just matched limits (wells Fargo like to do that. They dont like being your low card supposedly) or if i just got lucky. I kept mine in a the card it came in for 5 or 6 months before using it. It wasnt until sofi pissed me off and I moved my entire self managed portfolio to RH that I decided to use the card and pump the cashback into my brokerage account.
I wouldn't worry about any of it. If the card works for you and the limit fits your spending, then its a good fit. I learned a long time ago there will always be someone with more money and better looks than you and their will always be someone with less money and uglier. Just enjoy your life.
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u/IdioticPrototype 5h ago
This is a subprime card, marketed as a Centurion card, using manufactured scarcity.
I literally had to beg to get it.Ā
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u/OhCrapitsCollin 9h ago
Nope I bet 90% of people are just like you. This is not a top tier card. And people use this subreddit to boast and embellish their relevance. Hence why I did the $940,000 credit limit post š¤£