All information about the USAA Preferred Cash Rewards Credit Card has been collected independently by CardCritics™
USAA Preferred Cash Rewards Credit Card Review
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Written by
Dawn Allcot
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Edited by
Emily Gadd
The USAA Preferred Cash Rewards Credit Card is a straightforward cash-back rewards card that offers 1.5% cash back on all purchases with no limit to the rewards you can earn, no category restrictions and no expiration date on your rewards.
In addition to the standard travel benefits you’d expect with a rewards credit card, the Preferred Cash Rewards Card also comes with an welcome bonus after meeting the spend requirement
Intro Bonus
Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
Rewards
Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
Purchase and Balance Transfer APR
16.15% to 28.15% variable regular APR.
Recommended Credit Score
Good – Excellent
600 – 850
Annual Fee
$0
CardCritics™ Opinion
This is a solid cash back option for USAA® members and anyone interested in becoming a member (current and former members of the U.S. military and their family members qualify). You will earn cash back on all purchases, have the opportunity to earn a welcome bonus and pay no foreign transaction or annual fees.
Our Critical Analysis:
USAA Preferred Cash Rewards Credit Card
- Generous bonus offer
- Straightforward 1.5% rewards
- No annual fee
- No foreign transaction fees
- Points never expire
- $200 bonus
PROS
- High Variable APR
- Only available to USAA® members
- Other cards offer higher rewards
- Limited options to redeem rewards
CONS
Rewards
The Preferred Cash Rewards Card has a straightforward rewards program where every dollar spent delivers 1.5% in cash back. Rewards never expire and there’s no limit to the amount of rewards you can earn. Redeem rewards for cash back or a statement credit.
Welcome Bonus
The Preferred Cash Rewards Card gets you started with a $200 cashback bonus as long as you spend $1,000 within the first 90 days of opening your account. That’s on top of the $150 regular 1.5% rewards you’ll earn from spending that much.
Important Fees To Consider
The Preferred Cash Rewards Card has no annual fee and no foreign transaction fees, making it a good card for international travel. Your APR will not increase if you miss a payment, but you will pay $25 for your first late or returned payment. If you have another returned or late payment within the next six billing periods, you’ll pay a $35 late fee. These fees may not exceed the minimum payment due on your most recent bill. USAA also charges a 5% fee for balance transfers or cash advances. You can avoid the fee on cash advances if you have the funds deposited directly into your USAA Federal Savings Bank deposit account.
Additional Benefits
The Preferred Cash Rewards Card has a robust range of benefits, including:
- Zero liability fraud protection*
- Auto rental coverage
- Travel accident insurance
- Trip cancellation and interruption coverage
- Baggage delay and reimbursement coverage
When you use your Preferred Cash Rewards Card, it extends the U.S. manufacturer’s warranty on the item purchased by up to one year.
The Preferred Cash Rewards Card also offers a $200 reimbursement on your auto insurance deductible if you’ve made at least eight transactions in the prior calendar month. This benefit can help you save money on car insurance if you choose to increase your deductible to secure a lower rate or it can help keep more money in your pocket in the unfortunate event of a car accident.
As a Visa Signature card, this card also carries additional travel and lifestyle benefits, including:
- Three free months of Shipt membership for free deliveries
- Discounted tickets and other perks at Universal resorts in Florida and California
- Free airport lounge access and more
What Sets This Card Apart?
While the rewards on this card are pretty standard, the auto deductible reimbursement is a less common benefit that stands out. It’s also less common to see a rewards card with:
- No foreign transaction fees
- No annual fee
- No penalty APR
If you need to use this card for a cash advance, you can avoid the fees by having funds deposited into your USAA Federal Savings account; not many other cards have a way to avoid cash advance fees. Together, the entire package of benefits and rewards makes the Preferred Cash Rewards Card a solid card to carry.
Is It the Right Card For You?
The Preferred Cash Rewards Card may be the right fit for you if any of the following apply:
- You travel internationally and want a card with no foreign transaction fees.
- You pay your balance in full monthly.
- You don’t want to keep track of spending categories to maximize rewards.
- You want easy cash back.
- You qualify for USAA membership.
Card Details From USAA
- Must be a USAA® member, or become a member, to apply. USAA proudly offers membership to current and former military, as well as their spouses and dependents.
- Earn unlimited 1.5% cash back on purchases, no category restrictions, no caps on cash back.
- Intro Offer: Earn a $200 reward bonus when you spend $1,000 on qualifying purchases within 90 days of account opening.
- Auto Deductible Reimbursement (ADR) up to $200.
- A fee of 5% of the amount of each balance transfer, cash advance and convenience check applies.
- No annual fee.
- Cash back rewards never expire.
- Redeem cash back your way, on your schedule.
- No foreign transaction fees.
- 16.15% to 28.15% variable regular APR.
- Terms and Restrictions apply. See the Reward Terms and Conditions and the ADR Benefit Guide on USAA’s website for details.
- See Rates and Fees for details.
*You are not liable for unauthorized use that is reported to us. Unauthorized use means the use of a credit card by someone other than you who does not have actual, implied or apparent authority for such use and from which you do not receive a direct or indirect benefit. We will follow the requirements of the federal Truth in Lending Act and Nevada law to determine if a charge is unauthorized.
Frequently Asked Questions
The Preferred Cash Rewards Card takes a straightforward approach to earning and redeeming rewards. These answers to some frequently asked questions will help you decide if it’s the right card for you.
Is the Preferred Cash Rewards Card worth it?
With no annual fee and straightforward 1.5% cash back rewards, plus a host of travel benefits and generous $200 welcome bonus, the Preferred Cash Rewards Card is an easy choice for USAA members, which includes members of the U.S. Armed Forces and their families. The APR may be high so it’s not a good credit card to use if you tend to carry a balance.
What credit score do you need for a Preferred Cash Rewards Card?
USAA does not publicly disclose the credit score required to qualify for a Preferred Cash Rewards Card. However, the consensus amongst reviewers and users on various online forums is that you’ll need a credit score of at least 670, with a score of at least 700 increasing your odds of approval.
What are the disadvantages of USAA?
USAA is a credit union open to members of the U.S. military, veterans of the U.S. Armed Forces, and pre-commissioned officers and their immediate families. The credit union offers free checking and savings accounts, several rewards credit cards, and other perks to members. The disadvantages are its limited branches, with only four physical locations in Colorado, Maryland, New York, and Texas, and its strict membership requirements.
Does USAA have a 2% cashback card?
Yes, the USAA Cashback Rewards Plus American Express credit card delivers 2% cash back on your first $3,000 in grocery purchases annually and 5% cash back on your first $3,000 in combined gas station and military base purchases. Plus, earn 1% after that and on all other purchases.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.
*CardCritics™ references a FICO® 8 score, which is one of many different types of credit scores. A financial institution may use a different score when evaluating your application.
