Review of the USAA Preferred Cash Rewards Credit Card: 1.5% Cash Back for Military Personnel

Overview of the USAA Preferred Cash Rewards Visa Signature Credit Card

The USAA Preferred Cash Rewards Visa Signature® Credit Card provides a reliable cash-back option for active and retired military personnel, along with their spouses and dependents. Although it does not feature an introductory APR or special perks, this card delivers a straightforward experience with unlimited 1.5% cash back on all purchases and no annual fee (refer to rates and fees), making it an excellent choice for military families looking for a simple and rewarding cash-back card. Card rating*: ⭐⭐⭐½

*Card rating reflects the views of TPG's editors and is not influenced by the card issuer.

With no annual fee, a suggested credit score of 670, and unlimited cash back on purchases, the USAA Preferred Cash Rewards Credit Card can deliver significant value for military members and their families.

Let’s examine the advantages and disadvantages of carrying this card in your wallet.

Pros and Cons of the USAA Preferred Cash Rewards Credit Card

Welcome Offer for the USAA Preferred Cash Rewards Credit Card

The USAA Preferred Cash Rewards Credit Card provides a $200 bonus when you make $1,000 in purchases within the first 90 days of opening your account.

This is a strong offer considering the card's history, although there are certainly better options available among more popular credit cards.

Benefits of the USAA Preferred Cash Rewards Credit Card

While this no-annual-fee card doesn’t come with many extravagant perks, the USAA Preferred Cash Rewards Credit Card does offer standard travel and shopping protections, including travel accident insurance and extended warranty coverage on warranties from U.S. manufacturers, along with no foreign transaction fees (see rates and fees).

Additionally, it provides cell phone protection, reimbursing cardholders up to $500 if an eligible phone is lost or damaged. To qualify for this coverage, you must charge your monthly phone bill to your USAA credit card.

How to Earn Cash Back with the USAA Preferred Cash Rewards Credit Card

The USAA Preferred Cash Rewards Credit Card allows unlimited 1.5% cash back on all purchases, with no limits on categories or cash back amounts.

If you are a current or former military member or a family member of someone who serves, this card can be a great entry point into cash-back rewards.

How to Redeem Cash Back with the USAA Preferred Cash Rewards Credit Card

Cash back accumulated with the USAA Preferred Cash Rewards Credit Card does not expire, allowing you to redeem it at your convenience.

You can also choose to redeem your cash back as a statement credit or have it deposited directly into a USAA checking or savings account.

What Other Cards Compete with the USAA Preferred Cash Rewards Credit Card?

Several other simplified cash-back cards on the market rival the USAA Preferred Cash Rewards Credit Card:

• For straightforward cash rewards: The Citi Double Cash® Card (see rates and fees) provides up to 2% cash back on all purchases — 1% when you make a purchase and another 1% when you pay it off. Additionally, you can convert your rewards into fully transferable ThankYou points with another Citi card. Read our full review of the Citi Double Cash.
• For high earning rates: The Blue Cash Preferred® Card from American Express ranks among the top cash-back credit cards available. It offers impressive returns across various bonus categories and a generous welcome bonus. Cash back is awarded in the form of Reward Dollars that can be redeemed as a statement credit or during checkout at Amazon.com. Read our full review of the Blue Cash Preferred Card from American Express.
• For rotating bonus categories: The Chase Freedom Flex® has no annual fee and earns 5% cash back on travel booked through the Chase Travel℠ portal, 3% on dining, 3% on drugstore purchases, and 1% cash back on all other purchases. You can also earn 5% back (up to $1,500) on purchases in rotating categories each quarter when activated. For more details, check out our full review of the Freedom Flex card.

For more options, take a look at our comprehensive list of the best cash-back credit cards.

Is the USAA Preferred Cash Rewards Credit Card a good choice?

For military personnel, including current and former members, along with their spouses and dependents, the USAA Preferred Cash Rewards Credit Card serves as an appropriate option for cash-back rewards. While this card does not offer special perks, it provides a straightforward approach with unlimited 1.5% cash back on purchases and no annual fee.

Final Thoughts

The straightforward nature of the USAA Preferred Cash Rewards Credit Card makes it a compelling choice for military members and their families who want an easy way to earn cash back on their purchases.

This card is a great choice for military members seeking a simple and rewarding option that won't break the bank. However, there are more rewarding cash-back cards on the market.

To apply, you must be a USAA® member or become one. USAA is proud to offer membership to current and former military personnel, along with their spouses and dependents.