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

If you’re a member of USAA bank and looking for a card to help pay off a balance transfer, the Rate Advantage card provides a solid intro APR and a best-in-class ongoing APR.

Rates and fees: One of the lowest APRs on the market

The  USAA Rate Advantage card’s 11.15% to 25.15% variable APR means those who qualify for the low end of that range will enjoy one of the lowest interest rates currently available. This falls far below the current average interest rate, which has been hovering around 20 percent, and well beneath the 17 percent to 18 percent that even the best major low-interest credit cards provide at the moment. If you qualify for the USAA Rate Advantage card and end up with an ongoing rate that falls below 17 percent, this is a great card. But if you don’t think your credit profile and banking history with USAA will qualify you for an attractive interest rate, it may be worth considering a card with longer intro APRs or a rewards program.

The brass-tacks card structure exclusively focuses on the low interest rate, so it should be easy to justify as a back-up card for emergency purchases since there is no annual fee. There are also no foreign transaction fees, which works well with the great travel protections to make this card a low-cost option whether you’re traveling or on active duty.

Perks: Great travel protections for a streamlined card

The USAA Rate Advantage card doesn’t have a sign-up bonus or rewards structure, but it does come with a stellar travel protection roster that makes the card more appealing to people looking for value beyond its low APR. You’ll also get travel and emergency assistance if you ever have a problem on your trip, as well as travel accident insurance.

• 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.

• Trip cancellation or interruption insurance: 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. This is one of the best travel protections available and is normally only available with high-tier, premium travel cards. The only major no-annual-fee cards with trip cancellation and interruption insurance are typically Chase credit cards.

• Baggage delay reimbursement: If your checked baggage is delayed for more than four hours, the card’s baggage delay reimbursement can cover 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.

Intro APR: One of the few USAA cards with 0% intro APR offers

The USAA Rate Advantage 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 the excellent 11.15% to 25.15% variable APR). 

This is a solid intro APR length that’s on par with the windows that many popular no-annual-fee rewards cards provide. It can certainly help you save on potential interest if you already have a balance you can transfer and finish paying off, but there is no intro APR to help you finance purchases like most other zero-interest cards offer. The intro APR on convenience checks is very rare outside USAA credit cards, and it may help if you’re traveling somewhere that doesn’t allow you to pay with credit or debit cards. However, it’s likely to be much less useful than an intro APR on purchases.

Overall, these introductory offers are certainly solid, but the USAA Rate Advantage card would be more appealing if it offered longer intro APR offers on balance transfers like other zero-interest cards that don’t earn rewards. As the intro APRs currently stand, you could apply for a no-annual-fee rewards card and obtain similar intro APR timeframes that include both purchases and balance transfers.

While the USAA Rate Advantage is an outstanding low-interest credit card, there isn’t much value beyond that and its travel protections. If you don’t mind a somewhat higher interest rate, there are a variety of no-annual-fee cards that can rack up valuable rewards and sign-up bonuses with more practical intro APR offers.

Rewards: No way to earn rewards

The USAA Rate Advantage card doesn’t offer a rewards program or even any card-linked offers to scrounge up a few bucks of cash back either (like the Chase Offers and Amex Offers features). 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.

Welcome offer: No sign-up bonus rewards

The USAA Rate Advantage card's lack of a sign-up bonus is disappointing since sign-up bonuses can typically be found on many of the best credit cards. This includes a great number of no-annual-fee cards with similar intro APR offers. 

Although balance transfer-focused cards typically don’t carry sign-up bonuses, the USAA Rate Advantage card’s intro APRs aren’t impressive enough to justify omitting first-year and ongoing rewards. In fact, even the Citi Double Cash® Card provides intro bonus rewards despite having a top-tier flat rewards rate, a stronger intro APR for balance transfers and a decent ongoing APR. However, it is worth noting that the only USAA credit cards that currently provide intro reward offers are the USAA Eagle Navigator® Credit Card and the USAA Cash Rewards Credit Card (and neither offer is very impressive).

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.

Since the USAA Rate Advantage doesn’t offer much day-to-day value, it makes sense to pair it with a flat-rate or bonus category cash back credit card to earn rewards on your usual purchases that you can pay off on time. 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.

Naturally, the USAA Rate Advantage is meant for active-duty U.S. Armed Forces members, veterans with an Honorable or General Under Honorable Conditions discharge, pre-comission officers and their spouses or family members. However, the USAA Rate Advantage is a pretty specific credit card, so it’s mainly tailored toward: