Ultamate Rewards® Mastercard® Credit Card Review

As a financial expert with years of experience in analyzing various credit cards, I am excited to review the Ultamate Rewards® Mastercard® Credit Card. This card is designed specifically for beauty enthusiasts who frequently shop at Ulta Beauty. If Ulta Beauty is your go-to store for cosmetics, skincare, and hair products, this card might be a great addition to your wallet. In this comprehensive review, I will delve into the card’s features, benefits, and potential drawbacks to help you make an informed decision.

Ultamate Rewards® Mastercard® Credit Card Review

The Ultamate Rewards® Mastercard® Credit Card is issued by Comenity Bank and is part of the Ultamate Rewards® program. This card offers a unique set of rewards tailored to those who frequently shop at Ulta Beauty. With a rewards structure that provides 2x points for every $1 spent at Ulta Beauty and 1x point for every $3 spent outside of Ulta, it is designed to maximize your earning potential on beauty purchases.
The card also comes with a generous sign-up bonus of 500 bonus points when you spend $500 in the first 90 days outside of Ulta Beauty. Additionally, new cardholders receive a 20% discount on their first purchase, making it an attractive option for those looking to save on their initial spend.

Ultamate Rewards® Mastercard® Key Takeaways

– Rewards Structure: Earn 2x points for every $1 spent at Ulta Beauty and 1x point for every $3 spent outside of Ulta Beauty.
– Sign-Up Bonus: 500 bonus points when you spend $500 in the first 90 days outside of Ulta Beauty.
– Initial Discount: New cardholders receive 20% off their first purchase.
– No Annual Fee: The card comes with no annual fee, making it a cost-effective option for beauty enthusiasts.
– Variable APR: The purchase APR ranges from 23.24% to 32.24% variable, which can be high if you carry a balance.
– Balance Transfer and Cash Advance Fees: Either $10 or 5% of the amount of each transfer or advance, whichever is greater.
– Late Payment Fee: Up to $41 for late payments.

Ultamate Rewards® Mastercard® Pros and Cons

Pros:

1. No Annual Fee: One of the most attractive features of the Ultamate Rewards® Mastercard® is that it does not charge an annual fee. This can be a significant advantage for those who want to maximize their rewards without the added cost.
2. Generous Rewards at Ulta Beauty: The card offers 2x points for every $1 spent at Ulta Beauty, which can add up quickly for frequent shoppers. This is a great way to earn rewards on purchases you would be making anyway.
3. Sign-Up Bonus: The 500 bonus points for spending $500 in the first 90 days outside of Ulta Beauty is a compelling incentive, especially for those who plan to use the card for everyday purchases.
4. Initial Discount: The 20% discount on your first purchase is a nice perk that can provide immediate savings.

Cons:

1. High APR: The variable APR for purchases ranges from 23.24% to 32.24%, which is relatively high. This means that carrying a balance can result in significant interest charges.
2. Limited Rewards Outside of Ulta: The 1x point for every $3 spent outside of Ulta Beauty is not as competitive as other rewards cards that offer higher earning rates on general purchases.
3. Foreign Transaction Fee: The card charges a fee for foreign transactions, which can be a drawback for those who travel internationally.
4. Balance Transfer and Cash Advance Fees: The fees for balance transfers and cash advances can add up, making these transactions costly.

Ultamate Rewards® Mastercard® Benefits

Rewards Program

The Ultamate Rewards® Mastercard® Credit Card is designed to maximize your rewards on beauty purchases. Here’s how the rewards program works:
– 2x Points at Ulta Beauty: Earn 2x points for every $1 spent at Ulta Beauty. This includes purchases made in-store and online. The points can be redeemed for discounts on future Ulta Beauty purchases, allowing you to save on your favorite beauty products.
– 1x Point for Every $3 Spent Outside of Ulta: While the rewards rate outside of Ulta is not as competitive, it still allows you to earn points on everyday purchases. This can be a good way to accumulate points over time.
– 500 Bonus Points: Earn 500 bonus points when you spend $500 in the first 90 days outside of Ulta Beauty. This is a great way to boost your points balance quickly.

Initial Discount

New cardholders receive a 20% discount on their first purchase. This can provide significant savings, especially if you plan to make a large purchase soon after opening the card.

No Annual Fee

One of the standout features of the Ultamate Rewards® Mastercard® is the lack of an annual fee. This makes the card a cost-effective option for those who want to earn rewards without the added cost of an annual fee.

Payment Flexibility

The card offers flexible payment options, allowing you to manage your account and pay your bill online through the issuer’s website. This can make it easy to stay on top of your payments and avoid late fees.

Manage Your Account Online

Comenity Bank provides an online portal where you can manage your account, view your transactions, and make payments. This can be a convenient way to keep track of your spending and rewards.

Rate and Fee Information

Purchase APR

The purchase APR for the Ultamate Rewards® Mastercard® ranges from 23.24% to 32.24% variable. This is relatively high compared to other credit cards, so it’s important to pay off your balance in full each month to avoid interest charges.

Balance Transfer and Cash Advance APR

The APR for balance transfers is 26.99%, and the APR for cash advances is 33.24% variable. These rates are also on the higher side, making balance transfers and cash advances expensive options.

Fees

– Annual Fee: $0
– Balance Transfer Fee: Either $10 or 5% of the amount of each transfer, whichever is greater.
– Cash Advance Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater.
– Late Payment Fee: Up to $41
– Return Payment Fee: Up to $41

How to Avoid Paying Interest

To avoid paying interest on your purchases, make sure to pay your entire balance by the due date each month. Your due date is at least 25 days after the close of each billing period. If you do not pay your entire balance by the due date, you will be charged interest on your purchases from the transaction date. Additionally, you will not get a grace period on purchases again until you pay the entire balance by the due date for two billing periods in a row.

Conclusion

The Ultamate Rewards® Mastercard® Credit Card is a compelling option for those who frequently shop at Ulta Beauty. With its generous rewards structure, sign-up bonus, and initial discount, it offers numerous benefits for beauty enthusiasts. The lack of an annual fee makes it an attractive choice for those looking to maximize their rewards without the added cost.
However, the high APR and limited rewards outside of Ulta Beauty are important considerations. If you carry a balance, the interest charges can add up quickly. Additionally, the card’s foreign transaction fee can be a drawback for those who travel internationally.
Overall, the Ultamate Rewards® Mastercard® Credit Card is a solid choice for Ulta Beauty shoppers who can pay off their balance in full each month and want to earn rewards on their beauty purchases. If you fit this profile, this card can provide significant value and help you save on your favorite beauty products.