USAA Rate Advantage Card Review: A Much-Needed Respite From Interest Payments

USAA Rate Advantage Card Benefits

Low Intro APR

The top reason to apply for the USAA Rate Advantage Card is its valuable interest-free introductory offer: Get a 0% intro APR for 15 months on balance transfers and convenience checks that post within 90 days of account opening. After this time, the 11.15% to 25.15% variable regular APR will apply to introductory balances. A 11.15% to 25.15% variable regular APR will apply for purchases.

This is an above-average interest-free window — similar to what you’ll find from the best balance transfer credit cards, in fact. And its 11.15% to 25.15% variable regular APR is lower than average, as well. Those with great credit profiles can save a lot of money with this card’s advantageous interest rates.

No Foreign Transaction Fees

If you need a ​​credit card for international travel, the USAA Rate Advantage Card is a good option. Some cards charge foreign transaction fees of up to 3% when making a purchase that processes outside the US, but this card does not.

Travel Insurance

The USAA Rate Advantage Card has some of the best travel insurance perks of any no-annual-fee credit card on the market. Highlights include:

• Baggage delay reimbursement: When your bag is delayed by four hours or more, you’ll receive up to $100 per day (up to three days) toward reasonable expenses. This includes clothing, toiletries, a charger for electronics, etc.
• Rental car insurance: When you waive the rental agency’s in-house collision damage waiver (CDW) and pay with your card, you’ll receive coverage against theft or damage to your rental car, up to the actual cash value of most rentals. Coverage is secondary when in the US and primary when renting internationally.
• Trip cancellation and interruption insurance: If, for a covered reason, your travel is cut short or canceled and you’re forced to forfeit prepaid nonrefundable travel expenses, you can receive up to $1,500 in reimbursement per covered person.

Credit card travel insurance has saved me multiple times during trips. For example, I’ve received several hundred dollars in new clothes over the years from my checked bags being delayed by a day or two. Just note that you’ll need to use the card to pay for eligible travel to qualify for coverage.

Cell Phone Insurance and Purchase Protections

When you use your card to pay your wireless bill, you’ll receive up to $500 in cell phone protection toward theft or damage (maximum $1,000 per 12-month period). You’ll be subject to a reasonable $50 deductible per claim.

Cardholders can also take advantage of extended warranty and purchase security when they use the card to pay for eligible items.

USAA Rate Advantage Card Drawbacks

Only USAA Members Qualify

The USAA Rate Advantage Card is open exclusively to members of USAA. If you’re not a military member, veteran, National Guard, employee of certain federal agencies, or a qualifying family member, you can’t open the card.

No Intro APR on Purchases

Unlike some of the best low-APR credit cards, the Rate Advantage Card doesn’t offer an intro APR on new purchases — only qualifying balance transfers.

No Rewards Program

This card has no return rate for spending. That’s not wildly uncommon for a credit card that specializes in balance transfers, but it’s still an annoying omission. Several rewards credit cards offer low intro APR windows and also earn points or cash back.

High Balance Transfer Fee

You’ll pay a fee equal to 5% of the amount you transfer when initiating a balance transfer. This is on the high end of the standard credit card balance transfer fee range, and it can seriously eat into the savings you’ll realize from using the card as a shelter from high-interest debt. It can still be absolutely worth it, but be sure to factor this fee into the strategy you use.

Who Is the USAA Rate Advantage Card Best For?

Again, the USAA Rate Advantage Card is best for military members who need a break from the interest they’re accruing on credit card balances and other loans. There are very few meaningful USAA Rate Advantage Card benefits beyond its intro APR offer, so it’s not worth much after that period ends.

It’s worth noting, however, that the card is a decent option for travelers thanks to its solid travel insurance and waived foreign transaction fees.

Is It the Right Card for You?

The USAA Rate Advantage Card is right for you if:

• You’re a member of USAA
• You want to pay off your current debts in a hurry while avoiding interest payments
• You’d like a credit card that will benefit you while traveling
• You’re looking for a long-term no-annual-fee credit card to help bolster your length of credit history

Alternatives to the USAA Rate Advantage Card

The USAA Rate Advantage Card isn’t the only credit card that comes with perks like these. If you’re not a USAA member (or even if you are), consider these alternatives:

• Citi Double Cash® Card: The no-annual-fee Citi Double Cash Card, an advertising partner, comes with 0% Intro APR on balance transfers for 18 months, then 17.49% – 27.49% (Variable). A 17.49% – 27.49% (Variable) APR will apply for purchases. It also earns 1% back on purchases and 1% back when you pay them off — effectively 2% everywhere.
• U.S. Bank Shield™ Visa® Card: The U.S. Bank Shield Card offers a 0% intro APR on purchases and balance transfers for 24 billing cycles. After that the APR is variable, currently 17.24%-28.24%. It even earns 4% cash back on prepaid air, hotel and car rentals booked through U.S. Bank’s Travel Center.