USAA members have access to an attractive credit card with no categories to manage and a flat cashback rate on most purchases.
It offers many benefits, including a long intro Annual Percentage Rate (APR) on purchases.
Here’s a USAA Preferred Cash Rewards Credit Card review to see how it compares to others.
USAA Preferred Cash Rewards Credit Card: Overview
- Annual Fee: $0
- Intro APR: 0% for 15 months
- Regular APR: 17.15% – 31.15%
- Reward Rates: 1.5% cash back on most purchases
- Bonus Offer & Details: n/a
- Recommended Credit Score: Excellent
USAA Preferred Cash Rewards Credit Card: Features
If you’re looking for a no-fuss rewards credit card with easy-to-manage rewards, the USAA Preferred Cash Rewards Credit Card is a solid choice.
Without categories to manage and an attractive introductory APR, there’s a lot to like about this card.
Flat Rate Cashback
The USAA Preferred Cash Rewards Credit Card pays a flat rate of 1.5% cashback on most purchases. You don’t have to worry about managing categories or activating offers, and there aren’t any category restrictions.
- Keep Reading: Best Cash Back Credit Cards
Introductory APR on Purchases
Many rewards credit cards have intro APRs on balance transfers, not purchases. But the USAA Preferred Cash Rewards Credit Card offers a promotional 0% APR for 15 months on purchases, helping you pay off purchases over time without paying interest.
- Keep Reading: Best 0% APR Credit Cards
No Annual Fee
Many rewards credit cards charge annual fees, but the USAA Preferred Cash Rewards card doesn’t charge an annual fee.
- Keep Reading: Are Annual Fee Credit Cards Worth It?
Zero Liability
Relying on US coverage from USAA means zero liability for unauthorized transactions. This includes transactions reported to USAA as unauthorized by someone other than yourself or anyone you provided implied permission to use your card.
Personalized Alerts
You can set up customized alerts to learn about card usage, balance changes, or upcoming due dates.
Pros and Cons
The USAA Preferred Cash Rewards Credit Card has pros and cons to consider when deciding if it’s the right card for you.
Pros
- Unlimited rewards (no category caps)
- No annual fee or foreign transaction fee
- No penalty APR
- Easy to track rewards
Cons
- No sign-up bonus
- Other rewards cards offer higher cashback rates in categories like grocery, gas, or travel
- 5% balance transfer fee
Rates and Fees
Understanding credit card rates and fees can help you determine if it’s the right choice. Comparing the fees to the rewards earned can help you see the big picture.
- APR Range: The actual APR received varies by the cardholder. The rate charged depends on your credit score, income, and other factors. On average, the USAA Preferred Cash Rewards Credit Card has an APR range of 17.15% – to 31.15%.
- Introductory APR Offers: New cardholders get a 0% purchase APR for the first 15 months. This means you don’t pay interest on any purchases during that time if you don’t pay your full balance each month. After the introductory period expires, your APR resumes to the normal APR of 17.15% – 31.15%.
- Balance Transfer Fee: If you transfer a balance to your USAA Preferred Cash Rewards Credit Card, you’ll pay a 5% fee for the amount transferred, increasing your balance.
- Foreign Transaction Fee: The USAA Preferred Cash Rewards card doesn’t charge foreign transaction fees. This makes it a good card when traveling to save on unnecessary fees.
- Rewards Rate: Tracking rewards with the USAA Preferred Cash Rewards Credit Card is simple since you earn a flat 1.5% cash back on most purchases. There aren’t different category tiers or offers to activate to be eligible for rewards, making this a simple card.
- Annual Fee: This credit card doesn’t have an annual fee, making it an easy choice, especially if you’re looking for a straightforward card without categories to track.
- Credit Score Requirement: The credit needed for this card is Good or Excellent.
Eligibility and How To Apply
To apply for the USAA Preferred Cash Rewards Credit Card, you must first be a USAA member and meet certain requirements.
Membership Requirements for USAA
USAA proudly offers membership to current and former military, as well as their spouses and dependents. There aren’t any other requirements to become a member, and becoming a member allows you to apply for USAA credit cards, among other benefits.
Application Process
You can apply for the USAA Preferred Cash Rewards Credit Card online. You must provide your personal information, including your name, address, Social Security number, and birthdate. You must also provide employment and income information.
USAA will pull your credit and evaluate your income to ensure you qualify for the e-card. Some applicants receive answers immediately, and others must wait for an answer in the mail. You’ll receive your card within 7 to 10 business days if approved.
Rewards Value
You earn 1.5% cash back for every $1 spent on your USAA Preferred Cash Rewards Credit Card.
You can redeem your points for any of the following, but the value changes frequently, so check the current rates before redeeming:
- Travel reward to purChase Travel℠ accommodations
- Merchandise rewards to redeem for specific items
- Gift card rewards to purchase gift cards to retailers and restaurants
- Cash reward as a statement credit or direct deposit to your USAA account
- A charitable contribution to your favorite charity
How The USAA Preferred Cash Rewards Credit Card Compares To Other Cards
Comparing the USAA Preferred Cash Rewards Credit Card with other rewards credit cards can help determine if it’s right for you.
1. Capital One Quicksilver Cash Rewards Credit Card
Like the USAA Preferred Cash Rewards Visa Signature ® Credit Card, the Capital One Quicksilver credit card pays a flat 1.5% cashback on most purchases with no limits.
Unlike the USAA card, though, you can earn a $200 bonus after spending $1,000 on qualifying purchases in the first three months.
The introductory APR on the Capital One card is also for 15 months on purchases, but it includes balance transfers with a 3% balance transfer fee. The regular APR after the introductory period is 19.99% – 29.99%.
2. Bank of America Customized Rewards
The Bank of America Customized Rewards credit card allows cardholders to customize their highest-tier category. You can choose from dining, gas, online shopping, drug stores, home improvement, or travel, earning 3% cashback in your chosen category.
You can also earn 2% cashback on grocery and wholesale club purchases and 1% on everything else. However, there is a $2,500 spending limit on the 3%/2% categories combined quarterly. You can also change your customized category monthly.
The Bank of America Customized Rewards card offers a 0% APR on purchases within the first 15 months and balance transfers within the first 60 days. The regular APR resumes after the introductory period and is 18.24% to 28.24%.
The Bank of America card has a $200 bonus if you meet certain requirements, including spending $1,000 in the first 90 days. The card also has no annual fee.
Who Is The USAA Preferred Cash Rewards Credit Card Best For?
If you want a no-hassle credit card that you know pays cashback no matter what you purchase, the USAA Preferred Cash Rewards Credit Card is a good option.
It’s also a good choice if you have a large purchase coming up and need extra time to pay the full balance, as you’ll get 0% APR for 15 months, giving you more time to pay it in full.
