Service members and their families may want the USAA Rewards Amex for its solid rewards rates in everyday categories at no annual fee. The card also comes with decent perks and potentially low APR rates.
Rewards: Solid everyday earnings and flexible redemptions
Service members can earn unlimited Reward Points in useful everyday categories with the USAA Rewards Amex. The card earns a decent 3X points on dining, 2X points on gas and groceries, and 1X points on all other eligible purchases. However, like most reward cards, grocery purchases don’t include discount stores, wholesale stores and warehouse clubs.
Your earned reward points never expire if your account is open and in good standing and can be redeemed through the USAA Rewards Service Center online or by phone for a variety of options, including:
- Cash rewards: statement credit, electronic deposit to a USAA account, redemptions to cover purchases or recurring redemptions
- Travel rewards: redeem for airline tickets, cruises, hotel stays and car rentals booked through the USAA Rewards Center
- Merchandise and gift cards
- Charitable contributions
The value of your points depends on how you redeem them. According to the card’s terms and conditions, “The value of each Point may vary depending on the type of reward benefit you select when you redeem your Points and, in some instances, may also vary depending on the USAA accounts you have that earn Points.” Also, some redemptions may require a minimum amount. Always check the value of your redemption and ensure you are getting at least one-cent-per-point value to maximize your rewards.
Perks: On par with premium cards
Cardholders get solid Visa Signature benefits on par with mid-tier or better premium cards that provide excellent value for traveling and shopping protections. Travel protections for trip interruption, baggage delay, and car rentals meet or exceed the industry standard. For example, baggage delay kicks in after only a four-hour delay (up to $100 per day for up to 3 days). When these unexpected events arise, use your card for anything you need to purchase and save your receipts to submit with your claim.
On the shopping side, you’ll get purchase protection in the event of theft or damage for the first 90 days from the date of purchase for up to $1,000 per claim and $10,000 per cardholder. You’ll also have cell phone protection for up to $500 for damage or theft when you pay your bill with your card. Along with extended warranty and zero fraud liability, these protections are much better than other no-fee cards.
Rates and fees: Minimal extra fees and potentially low APR
The USAA Rewards Amex skips a lot of fees, including the penalty APR, annual fee, over-the-limit fee and foreign transaction fee. Having no foreign transaction fees can be especially beneficial for service members deployed overseas, allowing purchases without the 3 to 5 percent surcharge. While there is a 5 percent fee for balance transfers and cash advances, these aren’t out of line with other cards. The intro balance transfer APR can also soften this expense.
Because of its modest ongoing APR, the USAA Rewards American Express card can possibly be considered a low-interest credit card. The low end of this interest rate is decent for a rewards card, but its high-end APR rate is a little on the steep side. Your creditworthiness will determine where you fall on this scale.