Barclays AARP® Essential Rewards Mastercard® Review: Solid rewards on everyday spending
The AARP® Essential Rewards Mastercard® from Barclays offers a straightforward way to earn cash back on gas, prescriptions, and medical expenses. But with a high APR and foreign transaction fees, is it the right card for you?
| Annual Fee | $0.00 |
| Sign-up Bonus | $100 Cash Back Bonus |
| Rewards Rate | 1%-3% Cash Back |
| Intro APR | 0% introductory APR for the first 15 billing cycles following each balance transfer that posts to your account within 45 days of account opening. |
| Regular APR | Purchases – 20.24% to 29.99%, based on your creditworthiness and other factors. This APR will vary with the market based on the Prime Rate. After that (and for balance transfers that do not post within 45 days of account opening) your APR will be 20.24% to 29.99%, based on your creditworthiness and other factors. This APR will vary with the market based on the Prime Rate. 29.99%. This APR will vary with the market based on the Prime Rate. |
| Other Fees | Balance transfer – Either $5 or 5% of the amount of each transfer, whichever is greater. The minimum monthly interest charge will be $1.00. Balance transfer fee: 5% (min. $5). Cash advance fee: 5% (min. $10). Foreign transaction fee: 3%. |
Overview
The AARP® Essential Rewards Mastercard® from Barclays is a practical, no-annual-fee card that offers solid rewards on everyday spending categories. Cardholders earn an unlimited 3% cash back on gas and drugstore purchases and 2% back on eligible medical expenses, making it a potentially valuable tool for managing common household costs. The card also comes with a respectable welcome offer: earn a $100 cash back bonus after spending $500 on purchases in the first 90 days. For those looking to manage existing debt, it provides a 0% introductory APR for 15 months on balance transfers made within 45 days of opening the account.
While the rewards are useful, there are a few drawbacks to keep in mind. After the introductory period, the card carries a high variable APR, making it less than ideal for carrying a balance long-term. There's also a 3% foreign transaction fee, so it's not a great companion for international travel. The 5% balance transfer fee is also on the higher side. Ultimately, this card is best suited for individuals who spend a significant amount on gas, prescriptions, and medical care and who plan to pay their balance in full each month. If your spending habits align with its bonus categories, this card is a straightforward way to earn cash back without paying an annual fee.
Pros & Cons
What's great
- No annual fee
- Intro APR period for balance transfers
- Generous sign-up bonus
- High cashback on specific categories
- Cashback on all purchases
Things to consider
- High regular APR
- Foreign transaction fees apply
- High balance transfer fee
Benefits
Strong Rewards on Everyday Spending
The AARP® Essential Rewards Mastercard® shines with its straightforward, no-annual-fee rewards structure tailored to common household expenses. Cardholders earn an unlimited 3% cash back on gas and drugstore purchases (excluding Target and Walmart) and an impressive 2% cash back on eligible medical expenses. These bonus categories are particularly valuable as they cover non-discretionary spending where costs can add up quickly. While all other purchases earn a standard 1% cash back, the elevated rates in key areas make this card a solid choice for everyday use, especially for those who spend a significant amount on prescriptions, co-pays, gas, and other health-related items.
Attainable Bonus and Helpful Intro APR
New cardholders can earn a $100 cash back bonus after spending just $500 on purchases within the first 90 days. This welcome offer is highly accessible due to its low spending threshold, making it easy for nearly anyone to achieve. Beyond the initial bonus, the card provides a 0% introductory APR for 15 months on balance transfers posted within 45 days of account opening. This feature offers a valuable window for cardholders looking to pay down existing high-interest debt without accumulating more interest, though a balance transfer fee applies.
Flexible Redemptions and Unique Perks
When it's time to use your rewards, you have several flexible options. You can redeem for simple cash back, a statement credit to lower your bill, gift cards, or merchandise. Uniquely, you can also redeem your rewards for an AARP membership for yourself or as a gift, starting at just $16 in rewards. As an added benefit, Barclays donates $10 to the AARP Foundation for every new account opened and 1% of eligible purchases in select categories, adding a charitable component to your spending.
Drawbacks
While the card's rewards are tailored to specific spending areas, its value diminishes outside of them. You'll only earn a standard 1% cash back on all purchases that aren't for gas, drugstores, or medical expenses. This rate is easily beaten by other no-annual-fee cards that offer 1.5% or even 2% back on everything. Furthermore, the 3% category for drugstores notably excludes purchases made at Target and Walmart, which could be a significant limitation depending on your shopping habits.
The ongoing APR is quite high, ranging from 20.24% to 29.99% Variable. This makes the card a poor choice for anyone who anticipates carrying a balance from month to month, as interest charges could quickly erase any cash back rewards earned. Although it offers an introductory 0% APR on balance transfers, that benefit comes with a fee of 5% of the transfer amount (or $5, whichever is greater), which is higher than the 3% fee charged by many competing cards.
Finally, cardholders who travel abroad should look elsewhere. The AARP® Essential Rewards Mastercard® charges a 3% foreign transaction fee on all purchases made outside the United States. This unnecessary fee will add to your costs and negate any rewards you might earn while on vacation.
Decision Guidance
This no-annual-fee card is an excellent fit if your budget is heavily weighted toward gas, drugstores, and medical expenses, as its reward rates in these areas are highly competitive. However, you should only consider it if you plan to pay your balance in full each month to avoid the high ongoing APR. Those who travel abroad or whose spending is more varied would be better served by a different card without a foreign transaction fee or with more general rewards.
Summary
The AARP Essential Rewards Mastercard is a highly practical no-annual-fee card for anyone with significant gas, drugstore, and medical expenses, thanks to its generous and unlimited cash back rates in those areas. Its value is sharply diminished by a high ongoing APR and foreign transaction fees, however, making it best for disciplined spenders who pay their balance in full and don't need a card for international travel.