USAA® Rewards™ American Express® Card Review

CardName essentials

The CardName is a niche-market card that offers nice, if not spectacular, bonuses for membership.

As a United States Automobile Association (USAA) product, the card is only available to active duty military, veterans and their eligible family members. You should also be aware, before applying, that you'll need a CreditScoreNeeded credit score for acceptance.

The card has no introductory rate and carries an ongoing APR of RegAPR, depending on credit worthiness. The rate is the same for balance transfers. It should also be noted that there's a special 4% SCRA rate for for military members who have a balance on their account at the time they enter active military duty. That 4% APR will apply to that existing balance for the remainder of the qualified period of active duty.

Like others in the USAA family, the CardName has no annual fee, no foreign transaction fee and no over limit fee.

The rewards program is fairly straightforward. CardName offers three points for every dollar spent on dining, two points per dollar spent on gas and groceries and one point for each dollar spent on all other purchases. With each point equal to roughly a penny, the points can accumulate fairly quickly if you tend to dine out quite a bit. Points can be redeemed for cash, statement credits, merchandise and gift cards.

While it pales in comparison to many other cards, the CardName does offer an introductory bonus of 2,500 points that are awarded once making your first purchase.

FEATURED CARD

 

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• Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.
• $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
• Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
• Get 50% more value when you redeem your points for travel through Chase Travel℠. For example, 60,000 points are worth $900 toward travel.
• 1:1 point transfer to leading airline and hotel loyalty programs
• Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
• Member FDIC

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Credit Needed:

Excellent

What our editors like most about the CardName

A AnnualFees annual fee is a great place to start. With the CardName, you don't have to worry about reaching certain spending thresholds in order for the card to pay for itself.

Free money is always an attractive quality and the CardName gives you some cash right out of the gate. Just make one purchase and you get 2,500 bonus points, with a cash value of $25.

No foreign transaction fees is also especially nice for military families that might spend a good deal of time overseas.

We also like cards that weight their rewards toward food purchases. With three points for every dollar spent on dining and two points for each dollar spent on gas and groceries, the CardName benefits all types of people with varying spending habits.

Another nice feature is a rental vehicle collision damage waiver for physical damage and theft coverage. If you rent cars a few times a year, this is peace of mind that won't cost you a dime.

Potential downsides of the CardName

This is not an easy card to be approved for. For starters, you must be a member of USAA and that means being active military, a veteran or an eligible military family member. In addition, your credit score will need to be in the CreditScoreNeeded range.

There is no introductory interest rate and the APR could be either really great or really high, depending on your credit worthiness. The ongoing APR of RegAPR is among the broadest ranges you will find.

The introductory bonus of 2,500 points (cash value $25) is very low compared to other cards. But you won't find one easier to attain, as it kicks in after your first purchase instead of after a specific spending threshold.

How the CardName compares to other cards

CardName vs. CardName

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Evaluating these two cards comes down to a simple question – do you prefer simplicity and modest rewards or are you looking to take advantage of a more complicated rewards program that comes with a big bonus?

CardName carries a AnnualFees annual fee and an ongoing APR of RegAPR, depending on credit worthiness. On the other hand, CardName has a $0 annual fee and an APR that could be either really low or really high.

Where the CardName separates itself is with its rewards program, starting with a huge introductory offer of 60,000 bonus points when you spend at least $4,000 in the first three months you have the card. Those points have a value of $750 when redeemed through Chase Travel℠. CardName members earn: 5x on travel purchased through Chase Travel, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.

CardName gives three points for each dollar spent on dining, two points for each dollar spent on gas and groceries and one point per dollar on all other expenses. The introductory offer is just 2,500 points (value $25) but it kicks in with your first purchase.

CardName vs. CardName

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As two cards in the USAA family, these products have many similarities. Eligibility is limited to active military, veterans and eligible members of military families. Both require a credit score in the CreditScoreNeeded range for approval. That credit score is critical, as both cards have a wide potential interest rate range. The APR for the CardName is slightly higher, ranging from RegAPR.

The CardName has an introductory bonus and a straightforward points-based rewards program. By comparison, the CardName program is more complicated and has more limitations. It has no introductory bonus, but you get a healthy 5% cash back for the first $3,000 in combined annual spending at gas stations, commissaries and post exchange locations on military bases, 2% cash back on the your first $3,000 spent annually at supermarkets, and an unlimited 1% cash back on all other purchases.

CardName vs. CardName

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When comparing these two cards, the biggest factor to consider will likely be the amount of money you spend dining out each month. While the CardName gives three points for each dollar spent on dining out (along with two points per dollar on gas and groceries), the CardName gives a straight 4% cash back on all dining and 2% on groceries. That cash back can add up quickly, but it should be noted that there is an annual fee associated with this card, AnnualFees. The annual fee is always AnnualFees for the CardName, not just for the first year.

Speaking of introductory offers, the CardName has an attractive one, with $300 back once you spend $3,000 in the first three months you have the card. The 2,500 bonus points awarded by CardName with your first purchase has a cash value of just $25.

Is CardName a good card?

CardName has its limitations but, if you qualify and have strong credit, is a nice addition to your wallet. A lot of it will come down to your credit score. If your score is in the "excellent" category and you can land yourself with a low APR rate, you could save a great deal in interest charges with this card.

The reward of three points per dollar spent on all dining out expenses is competitive for that category. And the AnnualFees annual fee means you never have to worry about the card paying for itself. Plus, let's not forget about the added benefit of 4% APR for active military members.