USAA® Preferred Cash Rewards Visa Signature®Card review

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For some cardholders, the USAA® Preferred Cash Rewards Visa Signature® Card is a pretty good card: It offers enough cash back on every purchase that cardholders can collect a substantial amount of cash without making much of an effort. And, unlike most competitors, it offers an affordable minimum APR that’s well below average for a rewards card. USAA also offers a number of important, money-saving perks for active duty service members, making it a strong pick for members of the military.

However, cardholders with lower credit scores could run into trouble with this card. Its maximum APR is extraordinarily high for a credit card, making it a risky card if you need to carry a balance. It also doesn’t offer a sign-up bonus, so cardholders will have to wait to collect a significant amount of cash.

The same flat rate for every purchase

Like many cash back cards these days, the USAA Preferred Cash Rewards card caters to cardholders who value simplicity over complicated rewards schemes. Instead of luring customers with a higher rate on certain types of purchases, the USAA Preferred card offers strong a 1.5 percent cash back rate on every purchase. The simpler cash back scheme allows you to use your card without thinking too deeply about where or how you use it. If you have other cards with higher rewards rates on certain purchases, this is also a good card to use in conjunction with those cards for purchases that don’t qualify for a bonus rate.

On the downside, the average amount of cash you can collect in a year isn’t as large as other cards. According to our estimates, cardholders who spend at least $1,325 a month will collect roughly $238 by the end of the year.

Affordable APR – for some

In addition to its special perks for military service members, one of the most appealing features of the USAA Preferred Cash Rewards card is its relatively low APR of 11.90 percent (variable) for cardholders with excellent credit, which is below average for a cash back card. However, be careful about applying for this card if you have a less-than-perfect score. Cardholders with lower scores could wind up an APR as high as 25.90 percent (variable).

Relatively few restrictions

The good news is that if you wind up with a higher than expected APR, you don’t necessarily need to spend heavily to claim a significant amount of cash back. The USAA card doesn’t set an expiration date, and so you can slowly charge just the purchases you can afford to quickly pay off and wait for your earnings to expand. The USAA card doesn’t limit how much you can earn either, and so if you steadily use your card over time, you should be able to collect a considerable amount.

Zero online promotions

You won’t earn much when you first receive your card, though. Unlike most competitors, the USAA Preferred card doesn’t offer a sign-up bonus to online applicants, nor does it offer any other carrots, such as an introductory APR or interest-free balance transfer offer, in exchange for signing up.

Why get the USAA Preferred Cash Rewards Visa Signature Card?

• You want a low-maintenance cash back card with the same rewards rate for every purchase.
• You’re a member of the military and qualify for the card’s special rates.
• You have excellent credit and are looking for a low rate card with solid cash back.

How to use the USAA Preferred Cash Rewards Visa Signature Card:

• To maximize your earnings, use your card for all or most of your purchases.
• If you’re an active duty service member, take advantage of USAA’s special assistance program for cardholders deployed abroad.
• Check your interest rate before you carry a balance. Avoid paying interest by paying your purchases in full each month.

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