Pros
- No membership fees
- 0% intro APR on balance transfers
- High rewards rate
- 2,500 points initial rewards bonus
Cons
- No intro APR on purchases
- Balance transfer fee
- Requires excellent credit
The Verdict: The USAA® Rewards™ American Express® Card makes it cheaper to put food on the table and gas in your car's tank. It offers 3 points per $1 spent when you dine out, 2 points per $1 spent on groceries and gas, and 1 point per $1 on all other purchases. You also get 2,500 points after your first purchase. There's no annual fee, either.
In other words, the USAA Rewards Amex is $21.65 per year cheaper than the average credit card and rewards you up to three times more for making purchases.
That is not to say the offer is without flaws. For starters, USAA rewards points are worth less than a penny each, according to WalletHub's research. So that initial bonus equals just $24.75 on average, and your ongoing rewards work out to 0.85% to 2.55% cash back. The regular APR could be an issue, too. If you barely qualify for an account, you might be assigned a rate that make even the average card's penalty APR look cheap.
The USAA® Rewards™ American Express® Card's eligibility requirements could also present some problems for some interested applicants. Not only do you need good or excellent credit and enough income to pay the bills, but you must also be a current or former member of the military or the child of a USAA member.
If that describes you, this card could be an asset for your wallet. Continue reading to learn about what else it brings to the table, its top competitors and more.
USAA® Rewards™ American Express® Card
Transfer Fee: 3%
Rewards Details
- Get 2,500 bonus points with your first purchase.
- Earn 3X points per dollar spent on dining
- Earn 2X points per dollar spent on gas and groceries
- Earn 1X points for every dollar spent on all other purchases
- Redeem points for cash, merchandise, gift cards and more.
Additional Info
- USAA membership is available to active and former military and their eligible family members
- Your Balance Transfer must post to your account by 08/31/2023 of account opening for the Introductory APR to apply to the transaction.
- Security Benefits: Chip card technology has added security when used at a chip-enabled terminal and greater acceptance worldwide. Zero liability coverage for unauthorized transactions if your card is lost or stolen. Collision damage waiver coverage pays for physical damage and theft to most rental vehicles. Get account balances and transaction history by sending a text message. Access your account on usaa.com or from a mobile device.
- Travel Benefits: Auto Rental Coverage, Travel Accident Insurance, Trip Cancellation and Interruption Coverage, Baggage Delay and Reimbursement.
- More Details & Reviews About USAA® Rewards™ American Express® Card
The Highlights
- Up to 3 Points per $1 Spent: You will earn 3X points on purchases made at places classified as dining establishments, which typically includes restaurants of all types, from fast food to fine dining. Similarly, purchases made at gas stations and non-wholesale grocery stores yield 2X points. Non-wholesale means the likes of Costco, Sam's Club and Walmart don't count. And rounding out the ongoing rewards party, purchases in non-bonus categories get you 1 point per $1 spent.
Only the bonus earning rates wind up being worthwhile when you convert things to dollar terms, though. Each USAA point is worth an average of 0.85 of 1 cent. So you'll earn just 0.85% cash back on most types of purchases made with the USAA Rewards Amex. Meanwhile, the average cash rewards card offers 1.14% back on all purchases. But if you stick with gas, groceries and dining out, you can earn up to 2.5 times more than average.
- No Annual Fee: This saves you $21.65 per year compared to the average credit card. This also opens the door wider for folks who want to get the USAA Rewards Amex just for dining, gas and groceries.
- No Foreign Transaction Fee: This will save you an average of 1.53% on each international credit card purchase you make, whether you're traveling abroad or buying something from a foreign merchant while stateside. It will also allow you to take full advantage of the low currency conversion rates that credit cards offer.
- Special 4% Military APR: This universal USAA credit card feature applies to any balance you owe when you begin active military duty. And it lasts until the balance is repaid or a year after you conclude active duty. The same rate also applies to balances for up to 12 months in the event of deployment or PCS.
- Initial Bonus: The USAA Rewards Amex gets you 2,500 points after your first purchase, which is worth around $24.75.
The Lowlights
- Very High Regular APR Possible: The USAA® Rewards™ American Express® Card's regular APR could be anywhere from 14.65% to 30.65% (V), depending on your overall creditworthiness. And you must have good or excellent credit to qualify for the card in the first place.With that context, the low end of its APR range makes sense, considering credit cards for people with excellent credit charge an average of 17.23%, according to WalletHub's latest Credit Card Landscape Report. The high end, however, is way out of whack with the average APR among credit cards for good credit: 23.24%. In fact, it dwarfs even the average APR among credit cards for people with fair credit (25.54%) and the average penalty APR among all credit cards (26.86%).
The only time you should consider carrying a balance from month to month with this card is if you qualify for the special 4% military rate.
- Rewards Points Worth Relatively Little: This card's rewards earning rates may seem higher than they really are because the points you get are worth less than your standard credit card points or miles. Credit card points and miles generally are redeemable for a penny each. USAA points are worth 85% of that on average.
Other Things to Consider
- Minimum of Good Credit Required: You can check your latest credit score for free on WalletHub to see if you fit the bill. USAA will also consider your ability to pay, given your income, assets and existing debts.
- USAA Eligibility Criteria: To qualify for USAA membership, you must be a current or former member of the U.S. military, enrolled at a U.S. military academy, or the adult child of a USAA property insurance or auto insurance customer.
- Mystery Spending Limit: Some credit card companies will give you a hint by listing the minimum limit all approved applicants are guaranteed to get. But not USAA. You won't find out how much spending power you'll start with until you're approved for an account.
Compared to the Competition
There are lots of tasty credit cards on the menu these days. And many will yield bountiful rewards when you dine out, buy gas and shop at the grocery store. Figuring out which card is best for your particular needs may be the hardest part. So to help you out with that, we’ve compared a handful of the top offers below.
| Info | USAA® Rewards™ American Express® Card | Capital One SavorOne Cash Rewards Credit Card | Blue Cash Preferred® Card from American Express | Costco Anywhere Visa® Card by Citi |
|---|---|---|---|---|
| Annual Fee | $0 | $0 | $0 intro 1st yr, $95 after | $0 |
| Bonus Offer | 2,500 points | $200 | $250 | N/A |
| Rewards Rate | 1 - 3 points / $1 | 1 - 5% Cash Back | 1 - 6% Cash Back | 1 - 4% Cash Back |
| Purchase Intro APR | N/A | 0% for 15 months | 0% for 12 months | N/A |
| Transfer Intro APR | 0% for until December 2024 Transfer Fee: 3% | 0% for 15 months Transfer Fee: 3% | 0% for 12 months Transfer Fee: 3% (min $5) | N/A |
| Regular APR | 14.65% - 30.65% (V) | 19.74% - 29.74% (V) | 18.99% - 29.99% (V) | 20.24% (V) |
| Editors' Rating | 3.7 | 4.8 | 4.7 | 4.7 |
| Details, Rates & Fees | Learn More | Learn More | Learn More Rates & Fees Terms Apply | Learn More Rates & Fees |
| Winners | ||||
For more appetizing offers, check out the rest of WalletHub's picks for 2023's best credit cards for dining.
