USAA Rate Advantage Credit Card: A great low-interest credit card if you qualify

Quick highlights

• Rewards rate: N/A
• Welcome offer: N/A
• Annual fee: $0
• Purchase intro APR: N/A
• Balance transfer intro APR: 0 percent for 15 months for balance transfers that post to your account within first 90 days
• Regular APR: 11.40% to 25.40% variable

Current welcome offer

The USAA Rate Advantage card's lack of a sign-up bonus may be disappointing since sign-up bonuses can typically be found on many of the best credit cards. Earning a sign-up bonus may not be your top priority if you are trying to curb credit card debt with a low-interest card. But the added incentive can be a great relief to many when inflation impacts our wallets.

A low-interest credit card that also has a sign-up bonus, the Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union* may be a solid pick for members of the military, family of existing Andrews Federal Credit Union members and members of the American Consumer Council. If you spend $1,500 in purchases within the first 90 days of opening your Titanium Rewards Visa Signature card account, you’ll earn a bonus of 10,000 points. While not the best sign-up bonus available, you can still end up with some extra cash in your pocket as you take advantage of Titanium's relatively low interest rate.

Rewards rate

The USAA Rate Advantage card offers no rewards. It focuses instead on giving you a chance at a fantastic interest rate, which is helpful if you tend to carry a balance each month or you need to pay off a large purchase. But if you pay your balance in full each month, a rewards credit card tailored to your spending habits might be a better option.

Or if you want a combination of a low-interest credit card and chance at earning rewards, the Titanium Rewards Visa Signature Card from Andrews Federal Credit Union might once again be a good fit. On top of the sign-up bonus and low interest rate, it also offers 3X points on gas and grocery purchases and 1.5X points on all other purchases. That’s a great rate compared to many other credit cards, which tend to only offer 1X points or 1 percent cash back on purchases that fall outside bonus categories.

The USAA Rate Advantage card doesn’t have top-of-the-line perks like a sign-up bonus or rewards structure. But it does come with a variety of consumer and travel protections that make the card more appealing to people looking for value beyond its low APR.

Consumer protections  and benefits

This card’s extended warranty protection adds an additional year of coverage to an original warranty coverage that is three years or less (registration required). You can also enjoy Visa Signature benefits like 24/7 roadside dispatch and emergency card replacement.

Travel protections

The USAA Rate Advantage card comes with a number of under-the-radar credit card perks that you’ll be glad to have when traveling. The card’s auto rental collision damage waiver provides up to 31 days of insurance coverage against damages from theft or collision on eligible automobile rentals made with the card. Even if you only rent a car occasionally, credit card car rental insurance is a useful benefit that can save you from purchasing this coverage from the car rental company.

The card also comes with trip cancellation or interruption insurance per covered person, which provides up to $1,500 as reimbursement for travel fare costs should you have to cancel your trip or if it gets delayed due to unforeseen circumstances, such as illness or a change in military orders.

Additionally, if your checked baggage is delayed for more than four hours, the card’s baggage delay reimbursement can help. It covers you for up to three days, reimbursing you for up to $100 per day in essential items you purchase while waiting for your luggage to be returned to you.

You’ll also get travel and emergency assistance if you ever have a problem on your trip, as well as travel accident insurance.

The USAA Rate Advantage card is a low-cost card to carry. It doesn’t charge an annual fee or foreign transaction fees. It currently comes with a 0 percent intro APR offer for 15 months on balance transfers and convenience checks that post to your account in the first 90 days (followed by 11.40% to 25.40% variable APR). 

The intro APR offer is a great benefit if you need to transfer high-interest debt from another credit card, as it will help you avoid adding more interest charges to that debt for more than a year. And since you won’t be paying interest for the first 15 months, more of each monthly payment will go toward your principal balance, helping you pay off debt more effectively.

However, the 5 percent balance transfer fee is on the higher end, even for top balance transfer credit cards that might come with an intro balance fee offer (if you transfer a balance or write a convenience check to take advantage of the introductory rate offer, you will immediately incur interest on purchases until you pay your balance in full, including any transferred balances). And a number of cards like the Citi Custom Cash® Card have intro APR offers that cover both balance transfers and purchases — a better option for anyone who doesn’t want to deal with the hassle of using a convenience check.

The  USAA Rate Advantage card’s 11.40% to 25.40% variable APR means those who qualify for the low end of that range will enjoy great rates. The national average credit card interest rate is around 20.72 percent, and low-interest credit cards typically hover around 18 percent. If you qualify for the USAA Rate Advantage card and end up with an ongoing rate that falls around or below 18 percent, this is a great card. But it’s also worth considering another card if you don’t get a great low-interest rate.

For instance, if you don't qualify for USAA Rate Advantage card's lowest interest rate, a cash back credit card like the Citi Custom Cash Card is worth considering because of its short- and long-term value. Its variable APR range is comparatively decent; it also comes with a chance to earn rewards on your purchases plus a signup bonus. Or if you prefer a card with an APR range that guarantees a terrific interest rate, you could choose the Titanium Rewards Visa Signature card. Its ongoing variable APR is 14.74 percent to 18 percent, so even if you qualify for the higher end APR, you'll still be below the national average. 

The USAA Rate Advantage card is only available to current and former members of the military, spouses and children of USAA members. Plus, not everyone will be able to qualify for the low end of the card’s variable APR range. If the card or the low ongoing rate are out of reach for you, here are two alternatives that charge no annual fee, have competitive interest rates and offer rewards.

USAA Rate Advantage Credit Card vs. Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union

Depending on where you live, the Titanium Rewards Visa Signature Card from Andrews Federal Credit Union could be the best alternative to the USAA Rate Advantage card. While the USAA Rate Advantage card will only be able to offer low interest rates to some of its members, the Titanium Rewards card has a variable APR range that ensures all of its members can enjoy a low interest rate compared to similar credit cards.

The Titanium Rewards card also offers the chance to earn bonus rewards on everyday purchases like gas and groceries, followed by an above-average flat rate on all other purchases, providing potentially a lot more ongoing value than the USAA Rate Advantage card.

Just be aware that if you live in California, the Titanium Rewards card is only available as a secured credit card, so you would have to provide a security deposit. This might make the card less appealing for residents of the Golden State.

USAA Rate Advantage Credit Card vs. Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card is a great option for people who value simplicity. It’s one of the best flat-rate cash back cards, offering one of the highest flat rates on purchases and even a sign-up bonus — a rare feature for a flat-rate card that earns 2 percent cash rewards. While the Active Cash doesn’t come close to matching the low end of the USAA Rate Advantage card’s variable APR range, you won’t need to worry about interest charges if you can pay your balance in full. Instead, you can enjoy the value you get from earning a little bit of cash back on your purchases.

Best cards to pair with the USAA Rate Advantage Credit Card

If you qualify for a low ongoing rate and consistently pay your balance in full, you can pair your USAA Rate Advantage card with a flat-rate or bonus category cash back credit card. Use the cash back card that best fits your spending habits for all purchases you can pay in full before your grace period ends to avoid paying interest. If you need to make sizable purchases that you can’t pay off in full, use your USAA Rate Advantage card and take advantage of its low ongoing rate.

Military personnel and their family members who qualify can benefit from the USAA Rate Advantage Credit Card’s low APR, but the card doesn’t offer many other standout features like a sign-up bonus or ongoing rewards. People with average or poor credit could also get walloped with the high end of the card’s APR range.

If you tend to pay your balances in full each month, this card could be a nice backup to a rewards credit card in case you make an emergency purchase and need some wiggle room to pay it off. But if you’re offered an APR rate at the higher end of the range, there’s little reason to get this card.

* The information about the Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.