What the Rakuten Credit Card is and who it's for

The Rakuten Credit Card is a cash-back rewards card issued by Rakuten, a shopping platform and rewards company. When you use it to buy things, you earn cash back — a percentage of what you spent gets returned to you as a credit or statement credit. The card itself has no annual fee, which means you pay nothing just to hold it.

This card works best if you already shop online or plan to, because Rakuten's main strength is its partnership network. When you buy through the Rakuten website or app first, then click through to a store, you earn cash back both from the card and from Rakuten's store partnership. That stacking of rewards is where the real value sits for frequent online shoppers.

If you rarely shop online, pay your balance in full each month, and want straightforward rewards without tracking a shopping portal, this card can still work — you'll just earn the base cash back rate on all purchases and miss the bonus from the portal. If you carry a balance month to month, the interest charges will quickly outweigh any cash back you earn.

Key Takeaways

  • The Rakuten card earns cash back on all purchases with no annual fee, and you can earn additional cash back by shopping through Rakuten's website or app before visiting a store.
  • Cash back rates vary by category — groceries, gas, and dining typically earn higher percentages than general purchases, and rates change quarterly.
  • You need to set up bonus categories each quarter to earn the higher rate, or you'll earn only the base rate on those purchases.
  • Cash back appears as a statement credit or can be transferred to a linked bank account, and there is no minimum amount you must earn before you can use it.
  • The card requires good to excellent credit to be approved, and carrying a monthly balance will cost you far more in interest than you'll earn back in rewards.

How cash back works on this card

Every purchase you make earns a percentage back. The exact percentage depends on what you buy. Groceries, gas, and dining out typically earn 3% to 4% cash back, while most other purchases earn 1% to 2%. These rates are not fixed — Rakuten changes them each quarter, so the rate you earn in January may differ in April.

To earn the higher category rates, you must set up them in the Rakuten app or website each quarter. If you don't set up, you'll earn only the base rate (usually 1%) on those purchases, even though you own the card. This is a real step you have to take — it doesn't happen automatically. Many cardholders miss this and leave cash back on the table.

The cash back you earn sits in your Rakuten account. You can request it as a statement credit (which reduces your credit card bill), transfer it to a linked bank account, or let it accumulate. There's no minimum amount you have to earn before you can use it, and no expiration date on the cash back itself.

The Rakuten shopping portal and how it multiplies rewards

Rakuten runs an online shopping portal with partnerships at thousands of stores — Target, Walmart, Best Buy, Sephora, and many others. When you log into Rakuten's website or app, find the store you want, and click through to shop, you earn cash back from that store in addition to the cash back from your credit card.

For example, if you buy $100 worth of groceries at Walmart through the Rakuten portal, and Walmart is offering 2% cash back that week, you earn $2 from Rakuten. Then your Rakuten credit card earns its grocery rate (say, 3%) on that same $100 purchase, giving you another $3. You've earned $5 total on a $100 purchase — 5% back.

The portal rates change frequently and vary by store. Some weeks a store offers 2% back, other weeks 5% or more. Rakuten sends notifications when rates spike, which is useful if you're planning a larger purchase. The catch is that you have to remember to go through the portal — if you go directly to the store's website or app, you earn only the card's cash back, not the portal bonus.

What credit score you need and how approval works

Rakuten typically approves applicants with good to excellent credit — usually a score of 670 or higher, though the exact threshold varies. If your score is lower, you may still be approved, but it's less likely. If you've been denied for credit recently or have a history of missed payments, this card will be harder to get.

The process takes a few minutes online. Rakuten will ask for your name, address, income, and Social Security number. They'll pull your credit report (a hard inquiry, which temporarily lowers your score by a few points) and make a decision within minutes or a few business days. If approved, your card arrives in the mail within 7 to 10 business days.

If you're denied, you can call Rakuten's customer service to ask why. Sometimes they'll reconsider if your situation has changed, or they may offer you a different card product. explore multiple times in a short period will hurt your credit score more, so space out applications if you're trying different cards.

Annual fees, interest rates, and when this card costs you money

There is no annual fee. You can hold this card for years without paying anything just to own it. That's genuinely useful — many rewards cards charge $95 or more per year, which you have to earn back in rewards before you break even.

The interest rate (called the APR, or annual percentage rate) is what you pay if you carry a balance from month to month. Rakuten's APR varies based on your credit score and current market rates, but it's typically in the range of 16% to 25%. If you owe $1,000 and carry it for a month at 20% APR, you'll pay roughly $17 in interest. Earn 1% to 4% cash back on that same $1,000, and you've made $10 to $40 — but you've already lost $17 to interest. The math breaks down fast.

The card also charges a late fee (usually $25 to $35) if you miss a payment, and a cash advance fee if you use it to withdraw cash from an ATM. These fees exist on most credit cards, but they're worth knowing about because they're straightforward to trigger by accident.

How to maximize rewards without overspending

The biggest mistake cardholders make is spending more just to earn cash back. If you buy things you wouldn't normally buy to hit a rewards threshold, you've lost money overall. Cash back is a bonus on spending you were going to do anyway, not a reason to spend.

To actually benefit from this card, use it for purchases you make every month: groceries, gas, utilities, subscriptions. Pay the full balance each month so you avoid interest charges. Check the Rakuten app at the start of each quarter to set up the bonus categories. Before making a large purchase (furniture, electronics, appliances), log into the Rakuten portal and see if that store is offering a bonus that week — sometimes the portal rate is high enough to make a real difference.

If you have other cards with higher cash back rates in specific categories, use those instead. For instance, some cards earn 5% on groceries or gas. Use the Rakuten card for categories where it's competitive or where you can access the portal bonus. Mixing cards this way — using each for what it does best — is how people actually come out ahead on rewards.

Comparing the Rakuten card to other cash-back options

The main competitors are the Chase Freedom Flex (which earns 5% on rotating categories and 1.5% on everything else), the Citi Double Cash (which earns 2% on all purchases with no category tracking), and the Capital One SavorOne (which earns 3% on dining and entertainment). Each has different strengths.

The Rakuten card's advantage is the shopping portal — if you shop online frequently, that stacking of rewards is hard to beat. Its disadvantage is that you have to set up categories each quarter, and the base rates (1% to 2%) are lower than some competitors. The Chase Freedom Flex requires more attention to rotating categories but can earn higher rates if you track them. The Citi Double Cash is simpler — no set up, no portal, just 2% on everything — but you miss out on higher category rates.

If you're deciding between them, ask yourself: Do I shop online regularly and want to use a portal? If yes, Rakuten. Do I want the simplest possible card with no quarterly set up? If yes, Citi Double Cash. Do I want the highest rates on rotating categories and don't mind tracking them? If yes, Chase Freedom Flex. There's no universally "best" card — it depends on your actual spending habits.

Frequently Asked Questions

Do I have to use the Rakuten shopping portal to earn cash back?

No. You earn cash back on all purchases with the card itself, whether you use the portal or not. The portal is optional and just adds an extra layer of rewards. If you never use it, you'll still earn the card's base rates on everything you buy.

What happens if I forget to set up a bonus category?

You'll earn only the base rate (usually 1%) on that category instead of the higher rate. For example, if groceries are set to earn 4% but you forget to set up, you'll earn 1% on grocery purchases that quarter. You can set up anytime during the quarter, so if you remember mid-month, you'll earn the higher rate on purchases from that point forward.

Can I use this card if I have fair credit?

It's possible but less likely. Rakuten prefers good to excellent credit, but approval decisions vary. If you're turned down, you can call their customer service to discuss your situation. Some people with fair credit do get approved, especially if they have a history of on-time payments.

How long does it take to receive my cash back?

Cash back appears in your Rakuten account as purchases post to your card, usually within a few days. You can request it as a statement credit or bank transfer anytime — it doesn't have to accumulate to a certain amount. The actual transfer to your bank account typically takes 3 to 5 business days.

Will using this card hurt my credit score?

The process will cause a small, temporary drop (a few points) from the hard inquiry. Once you have the card, using it responsibly — keeping your balance low and paying on time — will actually help your credit score over time. Carrying a high balance or missing payments will hurt it significantly.