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The USAA Preferred Cash Rewards Credit Card may make sense for military members and their families who want to earn flat-rate rewards on each dollar they spend. A handful of travel perks come standard with this card.
While USAA offers quite a few credit cards, the USAA Preferred Cash Rewards Credit Card is the best USAA credit card for individuals who want to earn flat-rate cash back. However, there are additional reasons to consider signing up, including its selection of travel protections.
That being said, Business Insider compared the USAA Preferred Cash Rewards Credit Card to the best cash back credit cards available right now and found it below par due to limited availability and relatively modest rewards.
USAA Preferred Cash Rewards: For Military and Family Only
If you're a military member or eligible family member who is already a member of USAA, you probably already know this financial institution comes very highly rated. This is true for all the firm's financial products, including loans and more, but it's especially true for credit cards. For example, USAA beat out all other major card issuers except for American Express in J.D. Power's 2023 U.S. Credit Card Satisfaction Study.
Here's what you should know about whether this product makes sense for your wallet.
$0
N/A
16.40% - 28.40% variable
Earn a $200 reward bonus
Good, Excellent
- No annual fee
- No bonus categories to keep track of
- Comes with some travel coverage
- Like other USAA products, only available to current and former military as well as their spouses and dependents
- You can earn more cash back with more redemption options on other cards
- Charges a balance transfer fee
The USAA Preferred Cash Rewards Credit Card could make sense for military members and their families who want to earn flat-rate rewards on each dollar they spend. A handful of travel perks also come standard with the card.
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
- Intro Offer: Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
- Auto Deductible Reimbursement (up to $200).
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies.
- No annual fee.
- Cash back rewards never expire.
- Redeem cash back your way, on your schedule.
- No foreign transaction fees.
- 16.40% - 28.40% variable regular APR.
- Terms and Restrictions apply. See the Reward Terms and Conditions and the ADR Benefit Guide on USAA's website for details.
- See Rates and Fees for details.
USAA Preferred Cash Rewards Overview
The USAA Preferred Cash Rewards Credit Card is a standard cash-back credit card with no annual fee that offers an unlimited flat rate of 1.5% cash back for each dollar spent. This no-nonsense rewards structure is easy to understand and maximize with regular spending and bills, and you can skip tracking credit card bonus categories and spending caps.
The USAA Preferred Cash Rewards Credit Card also comes with some automatic travel insurance benefits that can help protect your trip, including auto rental coverage, travel accident insurance, trip cancellation and interruption insurance, and baggage delay reimbursement coverage.
USAA Preferred Cash Rewards Credit Card Rewards
Welcome Bonus
The USAA Preferred Cash Rewards Credit Card has a welcome bonus for new cardholders: $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening. This offer is generous for the low spend required, which should be easy for most households to meet within the time limit.
Earning Rewards with the USAA Preferred Cash Rewards
The USAA Preferred Cash Rewards Credit Card offers a flat rate of 1.5% cash back. While earning 1.5% back is good, it's not great, especially compared to the best 2% cash back credit cards that earn more per dollar spent across all categories.
Even other 1.5% cash back credit cards offer more. For example, the Chase Freedom Unlimited® offers 1.5% cash back on regular spending, as well as 5% back on travel booked through Chase, 5% back on Lyft rides (through March 31, 2025) and 3% cash back on dining and drugstore purchases. New cardmembers can also earn additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).
Redeeming Rewards with the USAA Preferred Cash Rewards
The USAA Preferred Cash Rewards Credit Card allows cardholders to redeem cash back for statement credits, an electronic transfer to a USAA bank account, merchandise, gift cards, travel, or charitable contributions.
USAA Preferred Cash Rewards Credit Card Benefits and Features
The USAA Preferred Cash Rewards Credit Card doesn't offer a ton of perks, but there are a few that may be valuable. Here's a rundown of the main features and benefits you get with this card.
Up to $200 Auto Deductible Reimbursement
The USAA Preferred Cash Rewards Credit Card recently introduced a new benefit: Cardholders who make at least eight purchases a month on this card can apply for reimbursement of up to $200 toward their auto policy deductible if they experience a covered loss.
Security and Protection
This card also comes with various security features to keep your account safe. These include secure log-ins, alerts that notify you of purchases and due dates, and the ability to report your card as lost or stolen online or in the USAA app.
Support and Service
USAA is known for offering excellent customer service, although some cardholders complain that quality has dropped in recent years. This card comes with 24/7 access to customer service online, extended warranty protection, and the ability to add your card to a mobile wallet for faster checkouts.
Trip Cancellation and Interruption
Cardholders have coverage of up to $1,500 per traveler for non-refundable prepaid passenger fare when you pay with this credit card and your travel is interrupted or canceled. The cancellation must be due to a covered reason such as a change in military orders, or an illness or accident that keeps you from traveling on your booked date.
Travel Accident Insurance
When you purchase your travel ticket with your USAA card, you are eligible to receive coverage for loss of life or limb, hearing, speech, or sight, on up to $500,000, depending on the specific loss. This coverage applies to air travel, ferry, cruise ship, train, or bus transportation and includes courtesy ground transportation immediately before departure or immediately after arrival on any covered trip.
Baggage Delay Reimbursement
If your checked baggage is delayed for four or more hours, you can be reimbursed up to $100 a day, for up to three days, for essentials such as clothing, chargers, or toiletries while waiting for your baggage to arrive. You must pay for your travel with this card to be eligible for the benefit, and report the delay to your travel provider when it occurs.
You may be reimbursed for the essential items you buy when your baggage is delayed for four or more hours. Covered items include toiletries, clothing and device chargers.
Auto Rental Collision Damage Waiver
When you reserve and pay for your rental car with your covered USAA credit card, you'll get built-in auto rental coverage worldwide on rental periods up to 31 days. In your country of residence, this coverage is secondary to your existing auto insurance policy or coverage.
This protection benefit covers physical damage, theft, reasonable and customary towing, and loss-of-use charges. To qualify, decline the collision damage waiver coverage offered by the rental agency and make sure your name is listed as the primary renter on the auto rental contract. Any additional drivers must also be listed on the auto rental agreement.
USAA Preferred Cash Rewards Credit Card Fees and Other Costs
Annual Fee
The USAA Preferred Cash Rewards Credit Card has a $0 annual fee, so you can plan on keeping it for the long haul without having to worry how often you use it. This card doesn't charge foreign transaction fees or over-limit fees that apply when you go over your credit limit, either.
Other Fees
As with many other cards, you can expect to pay fees on balance transfers, cash advances, late payments, and returned payments.
USAA Preferred Cash Rewards Card Comparison
Before you decide on the USAA Preferred Cash Rewards Credit Card, you'll probably want to compare it to a few credit cards with similar perks and rewards that aren't from USAA. When you do, you'll find that some cards from other issuers offer a more robust rewards rate and considerably more benefits.
As just one example, the Wells Fargo Active Cash® Card offers new cardmembers a $200 cash rewards bonus after spending $500 in purchases in the first three months from account opening. Cardholders also earn a higher flat rate of 2% cash rewards on purchases with no annual fee required. Better yet, the card comes with a 0% intro APR on purchases and qualifying balance transfers for 12 months from account opening (then a 19.24%, 24.24%, or 29.24% variable APR).
USAA Eagle Navigator® Credit Card vs. USAA Preferred Cash Rewards Credit Card
The USAA Eagle Navigator® Credit Card is USAA's first card with an annual fee ($95, see rates and fees) focused specifically on travel rewards. It earns 3x points on most travel-related purchases, and 2x points per dollar on everything else. You'll also get several great benefits including cellphone protection, baggage delay coverage, and an anniversary bonus of 10,000 points each year when you renew your card.
The USAA Preferred Cash Rewards Credit Card earns 1.5% cash back on all purchases with no annual fee. But the USAA Eagle Navigator® Credit Card doesn't automatically offer better returns per dollar spent, since Eagle Navigator rewards are only worth 0.7 cents apiece when redeemed as a statement credit. Therefore, you'll only come out ahead with the USAA Eagle Navigator® Credit Card if you spend your points on travel booked through USAA, or if you can earn enough points to offset USAA Eagle Navigator® Credit Card.
Read our USAA Eagle Navigator credit card review.
USAA Rate Advantage Credit Card vs. USAA Preferred Cash Rewards Credit Card
If you're looking for a USAA credit card and you want an intro APR offer that applies to balance transfers specifically, you should check out the USAA Rate Advantage Credit Card. This card doesn't have an annual fee, although it doesn't offer any rewards. The main benefit of this card is the fact you get 0% intro APR for 15 months on balance transfers and convenience checks that post to your account within 90 days of account opening, then 11.40% - 25.40% variable APR (see rates and fees).
That makes the USAA Rate Advantage Credit Card an option from USAA to consider if you need to consolidate and pay down debt over time. Then again, there are some balance transfer credit cards that offer 0% intro APRs for longer timelines.
Read our USAA Rate Advantage credit card review.
Chase Freedom Unlimited® vs. USAA Preferred Cash Rewards Credit Card
The Chase Freedom Unlimited® is also worth considering if you want to earn 1.5% cash back on regular purchases plus even better rewards in other categories. This card gives you the flat rate of 1.5% back on non-bonus spending, but you also earn 5% back on travel booked through Chase Travel℠, 5% back on Lyft rides (through March 31, 2025) and 3% cash back on dining and drugstore purchases.
New cardmembers can also earn additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year). The best part? The Chase Freedom Unlimited® comes with 0% intro APR on purchases and balance transfers for the first 15 months (followed by 19.74% - 28.49% Variable APR).
Read our Chase Freedom Unlimited Card Review.
USAA Preferred Cash Rewards Consumer Insights
In addition to compiling our own research on this credit card, Business Insider's personal finance experts reviewed customer feedback on sites like Reddit to see what everyday consumers have to say about this card.
Mediocre Compared to the Alternatives
Redditors pointed out that the USAA Preferred Cash Rewards Credit Card offers average benefits at best. While it's not a bad card, many alternatives earn more and provide better benefits. One long-time cardholder said they kept their USAA credit card, but now primarily spend on a handful of the best Chase cards instead to maximize earning opportunities.
Good for International Use
One current cardholder keeps the USAA Preferred Cash Rewards Credit Card for international use, since it doesn't charge foreign transaction fees. However, many of the best credit cards for no foreign transaction fees earn better rewards and may offer stronger travel protections.
Some Military Cardholders Prefer Navy Federal Credit Union (NFCU)
Some Reddit cardholders mentioned a preference for NFCU credit cards, which are also offered exclusively to military members and their families. Common reasons include higher earning rates, better customer support, and higher interest rates on Navy Federal Credit Union banking accounts.
$0
N/A
16.40% - 28.40% variable
Earn a $200 reward bonus
Good, Excellent
- No annual fee
- No bonus categories to keep track of
- Comes with some travel coverage
- Like other USAA products, only available to current and former military as well as their spouses and dependents
- You can earn more cash back with more redemption options on other cards
- Charges a balance transfer fee
The USAA Preferred Cash Rewards Credit Card could make sense for military members and their families who want to earn flat-rate rewards on each dollar they spend. A handful of travel perks also come standard with the card.
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
- Intro Offer: Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
- Auto Deductible Reimbursement (up to $200).
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies.
- No annual fee.
- Cash back rewards never expire.
- Redeem cash back your way, on your schedule.
- No foreign transaction fees.
- 16.40% - 28.40% variable regular APR.
- Terms and Restrictions apply. See the Reward Terms and Conditions and the ADR Benefit Guide on USAA's website for details.
- See Rates and Fees for details.
USAA Preferred Cash Rewards Frequently Asked Questions
The USAA Preferred Cash Rewards Credit Card's main benefits include earning unlimited 1.5% cash back on every purchase, no annual fee, and no foreign transaction fees. The card also offers robust security features, travel accident insurance, auto rental collision damage waiver, and extended warranty protection.
The USAA Preferred Cash Rewards Credit Card is slightly below average compared to the best cash back credit cards. The card earns an unlimited 1.5% cash back on all purchases and is only available to USAA members. In contrast, the best 2% cash back credit cards are available for all consumers with qualifying credit.
The USAA Preferred Cash Rewards Credit Card has at least one major downside: limited availability, since the card is only available to USAA members, who must be active or retired military or family.
You can technically use the USAA Preferred Cash Rewards Credit Card for debt consolidation, but we wouldn't recommend it. If you need to consolidate and pay down high-interest debt, you'll want to get a balance transfer credit card instead.
The USAA Preferred Cash Rewards Credit Card currently offers a welcome offer for new cardholders: $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
Why You Should Trust Us: How We Reviewed the USAA Preferred Cash Rewards Card
When reviewing the USAA Preferred Cash Rewards Credit Card, we followed our methodology on how we rate credit cards. This determines a card's star rating out of 5, and it assigns equal weight to five key categories.
When evaluating a credit card, we focus on the following categories:
- Welcome bonus offer (20%)
- Annual fee (20%)
- Rewards rates (20%)
- Using rewards (20%)
- Benefits (20%)
Note that we compare a given credit card to other similar cards, so we wouldn't expect the same perks on a no-annual-fee credit card and a premium credit card.
