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3. USAA Preferred Cash Rewards Credit Card review: Uncomplicated cash back

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reviews

3.6

Rating: 3.6 out of 5.

Great for simple cash back for USAA members

Annual Fee: None

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Here’s the average credit limit of members who matched their USAA Preferred Cash Rewards Credit Card or similar cards.

% of members by credit limit range

The average credit limit for members who have matched with this card or similar cards is $7,958, with $3,000 being the most common.

Here’s the average credit score of members who matched their USAA Preferred Cash Rewards Credit Card or similar cards.

% of members by credit score range

The average credit score for members who have matched with this card or similar cards is 687, with 809 being the most common. Note this is just one of the deciding factors when it comes to getting approved.

Member stats

Updated daily

35.2%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

45 years

Average age of members who matched this card or similar cards.

$98,439

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Pros and cons

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Unlimited 1.5% cash back rate

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No annual fee

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No foreign transaction fee

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Limited to USAA members

Key features of the USAA Preferred Cash Rewards Credit Card

USAA is an organization that serves military members and their families. Members get access to exclusive insurance, banking and investing services, as well as other USAA credit cards.

If you’re looking for a simple cash back credit card, you may find the USAA Preferred Cash Rewards Credit Card appealing. Here are some key things to know about this card.

Limited availability

To qualify for the USAA Preferred Cash Rewards Credit Card, you’ll need to be a USAA member.

But not everyone is eligible to join the USAA — you have to be a current or former member of the U.S. military. Spouses and children of USAA members are also eligible.

Unlimited 1.5% cash back

Simplicity is where the USAA Preferred Cash Rewards Credit Card really shines. With this card, you’ll earn a flat 1.5% cash back on all purchases. There are no rotating categories to worry about and there are no limits on how much cash back you can earn.

And redeeming your cash is easy, too. You can redeem cash back on your computer, by phone or on USAA’s mobile app. Some of your redemption options include applying cash back to your account as a statement credit or getting a deposit into your USAA checking or savings account.

Low fees

The USAA Preferred Cash Rewards Credit Card has no annual fee. That’s great because it means you don’t have to worry about earning a certain amount of cash back just to break even.

And while this card comes with a late-payment fee of up to $35, it has no penalty APR. It’s common for card issuers to significantly increase your APR when you’ve missed or been late on a payment, but USAA doesn’t do this to its customers.

Finally, the USAA Preferred Cash Rewards Credit Card comes with no foreign transaction fee. That’s a big deal for service members stationed overseas.

Lower APR during deployment

Speaking of being stationed overseas, all USAA cards offer a special interest rate for military members while they’re on active duty.

This card has a regular variable purchase APR of 16.15% - 28.15%, depending on your credit profile and other factors. But once your active duty begins, you can submit a request and, if approved, USAA will drop the APR on any existing balance on your USAA card to 4%. And you’ll get to keep that 4% rate throughout the remainder of your active duty.

The Servicemembers Civil Relief Act, or SCRA, limits interest rates to 6% or lower on credit card and other debt you’re carrying at the time your active duty begins. (There are exceptions, so visit the SCRA website to learn more.) USAA stands out by dropping that rate even further (to 4%) for your existing debts.

There is a sign-up bonus

The USAA Preferred Cash Rewards Credit Card has a sign up bonus to earn $200 after spending $1,000 on qualifying purchases within 90 days of account opening.

Who this card is good for

If you’re looking for a flat-rate cash back card from USAA that has no cash back limits or category restrictions, then this could be the card for you.

Are there other cards that offer 1.5% cash back? Sure. But if you already have a bank account or any other relationship with USAA, you may prefer to stick with an organization that you already know and trust.

But even if you love USAA, you may want to think twice about getting this card if you spend a lot of money at your military base, the gas pump or your local supermarket. In that case, you may be better off choosing the USAA® Cashback Rewards Plus American Express® Card, which gives bonus cash back for each of these categories.

Finally, if you aren’t an active or former military member (or an eligible family member), or if you’re looking for a sign-up bonus, the USAA Preferred Cash Rewards Credit Card probably isn’t going to be a good fit.

Not sure this is the card for you? Consider these alternatives.

If the USAA Preferred Cash Rewards Credit Card isn’t quite right for you, take a look at some other options.

• American Express Cash Magnet® Card: This card could be a good fit if you like the idea of earning simple cash back but aren’t eligible for USAA membership.
• USAA® Cashback Rewards Plus American Express® Card: Families stationed overseas may want to check out this card.
• Chase Freedom Flex℠: If you don’t mind keeping up with rotating categories, this card could be a great choice.