Pros
- No membership fees
- High rewards rate
- $100 initial rewards bonus
- No foreign fee
Cons
- No intro APR on purchases
- No intro APR on balance transfers
- Requires good/excellent credit
Note: This card is open to new applications in very limited locations.
The Verdict: The AAA Travel Credit Card is a solid option for AAA members with good or excellent credit who always pay their monthly bills in full and would like to earn rewards on everyday expenses. Although its terms won’t necessarily wow you, there is a lot to like on the rewards front, particularly if you spend a lot on travel, gas, groceries and AAA services. And what AAA member doesn’t?
The rewards package starts with an easily attainable $100 initial bonus and continues with the point equivalent of 5% cash back on all gas and electric vehicle-charging stations purchases. That’s supplemented by 3% back in grocery store, restaurants, travel, and AAA purchases, 1% back on all other purchases and an 5% incremental redemption bonus on AAA purchases with AAA Northeast Counselors and Advisors. The card doesn’t charge an annual fee, either.
But the benefits largely end there. While the AAA Travel Credit Card doesn't offer a 0% introductory interest rate for balance transfers, and it also charges a 5% (min $10) balance-transfer fee and a regular APR that can be anywhere from 18.24% to 29.99% (V) depending on your creditworthiness, which effectively ruin the offer.
AAA Travel Credit Card
Rewards Details
- $100 statement credit when you spend $1,000 within the first 90 days of account opening.
- 5% Cash Back on Gas & Electric Vehicle-charging stations.
- 3% Cash Back on Grocery Store, Restaurants, Travel, and AAA purchases.
- 1% Cash Back on all other purchases.
- 5% Incremental redemption bonus on AAA purchases with AAA Northeast Counselors and Advisors.
Additional Info
- This card is open to new applications in limited locations.
- More Details & Reviews About AAA Travel Credit Card
The Highlights
- $100 Initial Bonus: All you have to do to score $100, in the form of a statement credit, is charge at least $1,000 to your card within 90 days of account opening. That’s less than $12 a day. Enjoy!
- Up To 5% back: Every $1 that you spend on gas & electric vehicle-charging stations expenses earns you 5% back. And every $1 that you spend at grocery stores, gas stations, wholesale club and drug stores earns 3% back, while all other purchases yield 1% cash back. Considering that the average rewards card offers about 1.12% per $1 spent, exactly how valuable the AAA Card proves to be will ultimately depend on how much you spend in those bonus categories, especially AAA and travel expenses.
- No Annual Fee: All else being equal, it’s always better to avoid an annual fee than to pay one, and this particular feature will save you about $22 relative to the average credit card. Without a recurring expense to worry about, you’ll also have the freedom not to use your card if you wish and the luxury of keeping your account open longer than you might otherwise, which helps to boost your credit score.
- No Foreign-Transaction Fee: The card will save you 1.52% on all purchases processed outside the U.S., whether you’re traveling or simply buying something from an international merchant.
The Lowlights
- Potential For A Very High Interest Rate: Like many other credit cards, the AAA Visa’s interest rate is advertised as a range — 18.24% to 29.99% (V) — with the specifics to be determined based on your overall creditworthiness. If you have pristine credit and thus wind up qualifying for the low end of that rate, your APR will be similar to that of the average person with excellent credit: 15.16%. But it’s far more likely that applicants will be assigned a rate more befitting someone with fair credit. The moral of the story: Always pay your AAA credit-card bill in full. No matter what rate you’re ultimately assigned, carrying a balance from month to month will still cost you big-time.
Other Things To Consider
- AAA Membership Not Required: Although this card’s application includes a field for your AAA membership number, filling it in is optional. You don’t actually have to be a AAA member to apply for this card, which is a good thing considering that many nonmembers would love to earn 5% back on gas & electric vehicle-charging stations and 3% on grocery store, restaurants, travel, and AAA buys. But with that being said, most people are unlikely to gravitate to AAA-branded plastic unless they at least have an interest in joining, and this card really shines in the hands of a AAA member. So if you’re wondering about the cost of membership, you can join AAA for as little as $52 per year.
- Cash Back Expiration/Forfeiture: Cash Back expire five years after the date that you earn them, and you’ll lose any unredeemed earnings sooner than that if your account is closed.
