United Services Automobile Association (USAA) is known for its financial products and services geared toward military personnel. The USAA Cash Rewards® American Express® Credit Card is one of its best credit cards, offering up to 2.25% cash back on gas and grocery purchases, up to 1.25% on other purchases, and more. There is no annual fee, but that doesn’t mean you won’t get some shopping and travel perks. Here are the details…
- Tiered cash back rewards that allow users to earn up to 2.25% cash back on gas and grocery purchases, or up to 1.25% on everything else.
- Shopping and travel benefits.
- 4% APR on balances for up to 12 months during deployment or PCS.
- Regular APR in the 10.40% – 26.40% range.
- No annual fee
How It Works?
Cash back: The USAA Cash Rewards American Express Credit Card offers a tiered cash rewards program, that works like this:
- 0.45% cash back on the first $5,000 of Qualifying Purchases
- 0.85% cash back on next $5,000 of Qualifying Purchases
- 1% cash back on the next $7,000 (between $10,000 and $17,000) of Qualifying Purchases
- 1.25% cash back on all Qualifying Purchases after $17,000.
You also get an additional 1% for the gas and grocery store purchases.
So if you spend more than $17,000 a year, you’ll get 2.25% cash rewards for gas and grocery store purchases. The money earned is awarded every year in January and is based on your net purchases in the previous year. Cash rewards are not limited in any way, and they do not expire.
USAA MemberShop: From where cardmembers can shop with popular retailers such as Macy’s and The Home Depot, and earn additional rewards and savings.
Extended warranty: Up to one year of additional warranty on the manufacturer or U.S. store brand warranty for purchases made with the card.
Military benefits: Including a low APR of 4% on balances for up to 12 months during deployment or PCS, and on existing balances at the time you enter active military duty until one year after you complete active duty. In addition, cardmembers can qualify for a rebate on finance charges accrued during service in a qualified military campaign.
Travel benefits: These come included with Amex cards, and include concierge services, collision waiver coverage for rental vehicles, and travel accident insurance for you and your family. Also there is no foreign transaction fee.
Costs
- 10.40% – 26.40% APR on purchases and balance transfers
- 3% Balance Transfer Fee ($200 maximum)
- $0 Foreign Transaction Fee
- $0 Annual Fee
Pros
- If you spend more than $17,000 with the card, you’ll benefit from 2.25% cash back on gas and groceries.
- No limit on cash back categories – even when you surpass $17K in purchases with the card.
- No foreign transaction fee makes this card great to use even while travelling. Plus there are other travel perks included.
- Benefits for military personnel – which sit at the core of USAA’s business, making its products and services popular among the military service members.
Cons
- No sign-up bonus – which would make this card even more appealing.
- Rewards are redeemed once a year – and there’s nothing you can do about it. Some folks may not like this.
Is This The Card For You?
The USAA Cash Rewards® American Express® Credit Card is probably the best choice for military personnel whose card purchases are more than $17,000 per year, when they’ll get 2.25% cash back on gas and grocery purchases (and 1.25% on all other purchases). These users will also benefit from a low APR of 4% on balances for up to 12 months during deployment or PCS, and on existing balances at the time they enter active military duty until one year after they complete active duty. Plus, there are a few shopping and travels benefits included, all making this card that much better. Check it out.