USAA Preferred Cash Rewards Credit Card Review 2024

The USAA Preferred Cash Rewards Credit Card offers a flat 1.5% cash back on every purchase you make, a decent proposal for people who don’t want to keep track of various bonus rewards categories.

As a new cardholder, you’ll also benefit from a 0% intro APR on purchases for 15 months, followed by a 17.15% to 31.15% variable APR on purchases and balance transfers. A balance transfer fee of 5% of the amount of each balance transfer applies. Other notable features include travel accident insurance, trip cancellation and interruption coverage, baggage delay reimbursement and no foreign transaction fees.

That said, other top flat-rate cash-back cards offer a higher earning rate, and the USAA Preferred Cash Rewards Credit Card doesn’t offer a welcome bonus or balance transfer promotion. And like other USAA financial products, it’s only accessible to eligible USAA members. You can join USAA if you’re an eligible member of the military community or the spouse, former spouse, widow or child of an existing member.

• $0 annual fee
• 1.5% cash back on every purchase
• 0% intro APR for 15 months on purchases, then 17.15% to 31.15% variable regular APR
• Travel protections and no foreign transaction fees

Earning Rewards

The USAA Preferred Cash Rewards Credit Card offers 1.5% cash back on every purchase you make. If you prefer a straightforward rewards program or don’t spend a lot in any one spending category, that can be preferable to a tiered rewards credit card. But if you want to make the most of your purchases, you may consider a 2% cash-back card instead.

What’s more, the card doesn’t offer a welcome bonus to new cardholders. Many similar cards offer bonuses worth $200 or more after you meet a minimum spending requirement.

Redeeming Rewards

You’ll have a handful of redemption options through the USAA Rewards Center, including:

• Deposits into a USAA bank account
• Statement credits
• Gift cards
• Travel bookings
• Merchandise purchases
• Charitable contributions

Note that if you have other USAA cards that earn cash back, your rewards will be pooled together. There are minimum redemption amounts for each option, but USAA doesn’t disclose them, and they’re subject to change.

Rewards Potential

Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage earners brings in $116,000 annually and has $36,177 in total credit card spending each year. We base our sample household spending on that number.

The USAA Preferred Cash Rewards Credit Card offers a 0% intro APR on purchases for 15 months, followed by a 17.15% to 31.15% variable APR on purchases and balance transfers. A balance transfer fee of 5% of the amount of each balance transfer applies.

This introductory period is in line with 0% APR promotions offered by many other top cash-back credit cards—though if you need more time to pay down a large purchase, some 0% APR cards go as long as 21 months.

That said, many other cards also offer a 0% APR promotion on balance transfers. If you have some high-interest debt you’d like to pay off, research balance transfer credit cards.

• Trip cancellation and interruption insurance. Up to $1,500 per covered person for non-refundable prepaid fares when your trip is canceled or interrupted due to a covered reason.
• Baggage delay reimbursement. Up to $100 per day for up to three days for essentials like clothing and toiletries if your checked baggage is delayed.
• Travel accident insurance. Up to $500,000 in coverage if you experience an accidental death or dismemberment during certain periods of your trip.
• Auto rental collision damage waiver. Up to 31 days of coverage worldwide when you decline the car rental agency’s coverage.
• Cellphone protection. Get up to $500 in coverage against damage or theft when you use your card to pay your phone bill.

Interest Rates

• Regular APR: 17.15% to 31.15% variable
• Purchase intro APR: 0% intro APR for 15 months on purchases, then 17.15% to 31.15% variable regular APR
• Balance transfer intro APR: N/A

Fees

• Annual fee: $0
• Balance transfer fee: 5% of the amount of each balance transfer and convenience check
• Foreign purchase transaction fee: None

USAA Preferred Cash Rewards Credit Card vs. Wells Fargo Active Cash® Card

If you want more bang for your buck all around, consider the Wells Fargo Active Cash® Card. It offers 2% cash rewards on purchases, plus a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. You’ll also get a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 20.24%, 25.24%, or 29.99% variable APR applies. Balance transfers made within 120 days qualify for the intro rate and fee of 3% then a fee of up to 5%, with a minimum of $5 applies. The card doesn’t charge an annual fee.

USAA Preferred Cash Rewards Credit Card vs. Chase Freedom Unlimited®

While most tiered rewards credit cards offer a measly 1% back on non-bonus spending—which is generally where most of your purchases will be—the Chase Freedom Unlimited® offers 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year.

You’ll also earn a unique welcome bonus: Chase will give you an additional 1.5% cash back on up to $20,000 spent in the first year, worth up to $300 cash back. New cardholders also get a 0% introductory APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. An intro transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, applies in the first 60 days of account opening. After that, a fee of either $5 or 5% of the amount of each transfer applies. There’s no annual fee.

USAA Preferred Cash Rewards Credit Card vs. Chase Freedom Flex℠

If you don’t spend a lot in any one purchase category but you like the idea of earning more than 1.5% back, the Chase Freedom Flex℠ should be on your radar. The card offers 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. Some of the 5% categories in 2023 included grocery stores, gas stations, wholesale clubs, live entertainment, PayPal purchases and more.

When you first open the account, you can earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening. New cardholders also get a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. Balance transfer fee of up to 5% (min. $5) of the amount of each transfer applies. The card doesn’t charge an annual fee.

The USAA Preferred Cash Rewards Credit Card is a decent option if you’re a USAA member and you want to keep all of your financial accounts under one proverbial roof. But with many of the card’s main features—including the rewards rate and 0% APR promotion—there are several other cash-back credit cards that offer more value.

Also, the lack of a welcome bonus is a glaring omission—some 2% cash-back cards don’t offer one, but it’s standard for a 1.5% card. And if you’re not a USAA member and don’t qualify to become one, the card isn’t an option to begin with.

Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:

• Annual fees
• Welcome bonus offers
• Ongoing earning rates
• Value of individual points or miles
• Included travel or merchant credits
• Additional cardholder benefits

Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.

Read more: How Forbes Advisor Rates Credit Cards