Microsoft has finally made Xbox Mastercard available to users

The Xbox Mastercard is finally available to users after Microsoft announced it last year. It is a no-annual-fee credit card issued by Barclays, that can be used to earn points with everyday purchases and use them to redeem games and other valuables in the Xbox Store.

According to the official announcement, Microsoft is releasing the Xbox Mastercard as a no-annual fee product that can be used to earn points for every $1 spent on a variety of purchases.

Starting today, the Xbox Mastercard with no annual fee is available to all residents in the continental United States, Alaska and Hawaii. 

Microsoft

The places you need to spend your budget to earn points on the Xbox Mastercard are:

• Xbox & Microsoft – Earn 5x card points on eligible products at the Microsoft Store.  
• Streaming services – Earn 3x card points on eligible streaming services like Netflix and Disney+. 
• Dining delivery services – Earn 3x card points on eligible dining delivery services like Grubhub and DoorDash. 
• Everyday purchases – Earn 1X card points on all other everyday purchases. 

Plus, those who enlist for the new card will receive a handful of new benefits which include 3 months of Premium Spotify, an instant level 2 on the Microsoft Rewards program, and two 3-month codes for Game Pass Ultimate that can be gifted to family or friends.

It does sound like a good deal, but if you want to enlist in the program, you have to take into consideration the Xbox Mastercard’s terms and conditions. Why? Because it can get you in debt if you have no experience with cards.

Xbox Mastercard’s Annual Percentage Rate (APR) for Purchases is 20.99%, 26.99%, or 31.99%, based on your creditworthiness. The APR for Balance Transfers is 20.99%, 26.99%, or 31.99%, based on your creditworthiness.

When considering the Xbox Mastercard’s transaction fees, we have a Balance Transfer, that is either $10 or 5% of the amount of each transfer, whichever is greater.

If you have $1000 on your Xbox Mastercard, for instance, with an interest rate of 31.99%, and a monthly payment of $100, with an introductory balance transfer of 5% for 18 months, you’d need to pay $59 a month on the balance transfer card to pay off your balance before the intro period ends.

If you paid off your balance by the end of the intro period, you’d save $122 in interest. If you fail to do so, you’ll have a penalty fee of $41, whether we talk about late payments or returned payments.

So, owning this card is no easy task, but if you already own several other cards, and you’re comfortable with it, the Xbox Mastercard could end up being a good deal, as long as you’re spending, of course.