6 USAA Preferred Cash Rewards Card Benefits You Didn’t Know About
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Written by
Joseph Hostetler
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Edited by
Emily Gadd
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Reviewed by
Jasmin Baron
If you or a family member qualifies for a USAA® account, it’s worth taking a good, hard look at the best USAA credit cards. Many come with low fees, valuable intro bonuses and solid (though often unsung) benefits that can save you big time on everyday purchases.
The USAA Preferred Cash Rewards Credit Card is one such card, offering a respectable 1.5% cash back on purchases. The card also comes with a $200 cash bonus after spending $1,000 on purchases within the first 90 days from account opening.
This cash-back credit card offers more than rewards, though. Let’s take a look at a handful of little-known Preferred Cash Rewards Card benefits.
1. Travel Insurance
If you’re lucky, credit card travel insurance is a perk that’ll go unused. But if you find yourself booking even a handful of trips each year, you’ll likely experience hiccups like a lost bag, a dented rental car or even bad weather that interrupts your trip. The Preferred Cash Rewards Card can help you in these situations.
When you pay for your travel with the Preferred Cash Rewards Card, you’ll get:
- Rental car insurance: Waive the car rental agency’s proprietary insurance, and you’ll receive secondary insurance toward damage, theft and select loss-of-use and towing expenses for rentals within the US. When renting outside the US, coverage is primary.
- Baggage delay insurance: If your checked bag is delayed by four hours or more at your destination, you’ll be reimbursed up to $100 per day (up to three days) for “reasonable expenses” like toiletries and clothes.
- Trip cancellation and interruption insurance: Certain unforeseen circumstances may cause you to either cut short or completely cancel your travel. This card will reimburse up to $1,500 per covered person for nonrefundable prepaid travel (think airfare, car rentals and hotel stays). Eligible reasons include inclement weather, a change in military orders and certain bodily injuries and sicknesses.
- Travel accident insurance: When disaster strikes that results in a loss of limbs, senses (sight, speech, etc.) or life, your card can reimburse you up to $500,000.
- No foreign transaction fees: You can make purchases outside the US without being charged foreign transaction fees (many cards charge a 3% fee when spending abroad).
Any of these perks can save you hundreds (even thousands) of dollars with just one use. For example, rental car insurance saves me many hundreds of dollars each year when I rent a car abroad, as I never pay for the rental company’s pricey insurance (often $12 or more per day). I get all the coverage I need simply from using the right travel credit card to pay for my rental.
2. Auto Deductible Reimbursement
Among the most unique Preferred Cash Rewards Card perks is its auto deductible reimbursement feature. You’ll get this perk only when you make a minimum of eight transactions (minus credits and returns) in the previous calendar month.
When your car sustains damage that triggers your auto insurance policy, you’ll get up to $200 per 12-month period reimbursed toward your deductible payment. The damage must exceed the deductible.
This is another hope-you’ll-never-need-it benefit — but it’s nice to have just in case.
3. Cell Phone Protection
You’ll automatically receive cell phone insurance when you pay your monthly phone bill with the Preferred Cash Rewards Card. The card provides up to $500 in reimbursement per claim, subject to a $50 deductible. You’ll get a maximum of $1,000 in coverage per 12-month period.
Coverage is secondary, meaning it’ll cover what your primary insurance doesn’t, including its deductible. This is a great benefit for those who already pay for cell phone coverage.
My wireless plan allows me to upgrade my phone every couple of years, with the condition that my current device isn’t in bad condition. I recently was rejected for an upgrade because my phone was too cracked, so I used cell phone insurance to pay a reasonable deductible to get a replacement — and I traded that phone in for a new one. Credit card cell phone insurance to the rescue.
4. Below-Average Interest Rates
Rewards credit cards typically have exorbitant interest rates, often between 19% and 29%. Comparatively, the Preferred Cash Rewards Card charges between 16.15% to 28.15% variable regular APR. That’s an uncommonly low minimum APR, benefiting those with excellent credit who qualify for it.
Of course, you shouldn’t ever carry a credit card balance month-to-month. But in case of an emergency, when you feel you absolutely must, this card can be a better option than most.
5. Purchase Protection
Because the Preferred Cash Rewards Card earns a flat 1.5% cash back on purchases, it’s a great daily driver for your common expenses. But it brings other incentives, too. When you use your card for eligible purchases, you will automatically get:
- Extended warranty protection: This doubles the length of an item’s manufacturer’s warranty of three years or less (maximum one-year extension). You’ll get up to $15,000 in coverage per claim, with a cap of $50,000 per account.
- Purchase security: For up to 90 days from the date of purchase, eligible items will receive coverage against damage or theft. You can receive up to $1,000 per claim (max $10,000 per account).
These types of perks have saved me well over $1,000 in the past.
6. 24/7 Concierge
If you’d like help planning travel, booking concert tickets or even finding a good restaurant, your card’s concierge can help you out. They’re available 24 hours a day.
From helping you find a nearby ATM to booking reservations on your behalf to locating for you an item you’re having trouble purchasing, a concierge can perform a lot of legwork that you can’t be bothered to do yourself.
Frequently Asked Questions About USAA Preferred Cash Rewards Credit Card Benefits
What is the cash back rate for Preferred Cash Rewards Card?
The cash back rate for the Preferred Cash Rewards Card is 1.5% cash back on purchases. There is no cap on the amount of cash back you can earn.
Who is eligible for Preferred Cash Rewards Card?
You can only open a Preferred Cash Rewards Card if you’re a USAA member. You must be current or former military, an officer of the NOAA or USPHS, an employee of specific federal agencies, faculty of the Merchant Marine Academy or an eligible family member.
Does the Preferred Cash Rewards Card have an annual fee?
The Preferred Cash Rewards Card does not have an annual fee.
What credit score do you need for the Preferred Cash Rewards Card?
While USAA doesn’t give the exact credit score needed for the Preferred Cash Rewards Card, you’ll typically need at least a good credit score (a FICO score of 670 or better) to be considered.
