Get rewards from your everyday spending with the right credit card. While there are many options, you might want to consider the Rewards American Express Card from USAA. In this USAA Rewards American Express Card review, I will walk you through its details.
The USAA Rewards American Express Card earns unlimited points for your everyday expenses – 3x for dining, 2x for gas and grocery, and 1x for everything else. The card also offers other notable benefits, such as zero foreign transaction fee and no annual fee. Plus, new users can enjoy a welcome treat of 2,500 points.
Below is a quick summary of the rates and fees for using this credit card:
|Foreign Transaction Fee||$0|
|Balance Transfer Fee||3%|
|Cash Advance Fee||3%|
|Regular APR||9.90 to 25.90%|
|Late and returned Payment Fee||A maximum of $35|
Read on to learn more about the USAA Rewards American Express Card, including its rates and fees, as well as some of its pros and cons.
About the USAA Rewards American Express Card
The United Services Automobile Association (USAA) is a financial service company from San Antonio, Texas, with a national operation. Since its founding in 1922, the bank has been actively serving its military personnel, including their families. It has more than 13 million members, over 48.8 million total products, 36,000 employees, and a net worth of over 40.4 million.
While the bank has several credit cards, the spotlight is on USAA Rewards American Express Card in this review. It is a great card for charging your everyday expenses as it earns points for all your purchases. New members will also enjoy a welcome offer.
Main Features of the USAA Rewards American Express Card
This section looks at some of the most notable features of this credit card, making it a cut above others:
1. Earn Unlimited Rewards
The biggest selling point of this credit card is that you can earn unlimited rewards for all your purchases. Keep on swiping to pay for your everyday purchases, and the card will also keep on rewarding you.
All your dining transactions will earn three times points for every dollar. Meanwhile, your charges for groceries and gas will accumulate two times points for every dollar. All other purchases, on the other hand, will have one point for every dollar. The best thing is that the card does not limit the rewards that you can earn.
Take note of the different transactions that do not earn cash rewards, including cash advances, balance transfers, tax payments, ATM transfers, gaming transactions, and finance charges.
2. 2,500 Points for New Users
If you’re not yet convinced of this card’s excellence, you might have a change of mind after knowing that the bank is offering 2,5000 bonus points to welcome its new users. The best thing is that there is no minimum requirement to qualify for this bonus. Swipe your card for the first time and you will immediately get a reward.
3. Zero Liability
Fraudulent credit card transactions are common. You might end up suffering from a financial burden if you do not have the right insurance. Good thing, this card protects its users from fraud. With proper reporting, you don’t have to pay a cent if the charge was unauthorized.
4. Travel Benefits
American Express credit cards are known for their travel benefits, and the USAA Rewards is no different. Some of the travel benefits that you can enjoy with this credit card include:
- Car rental coverage,
- Baggage delay insurance and reimbursement,
- Trip cancellation and interruption insurance, and
- Travel accident coverage.
5. 24/7 Customer Service
The company provides impeccable support. Call them anytime, and you are sure that someone is immediately available to extend a helping hand. Whether you would like to report a stolen card or inquire about a suspected fraud case, they have knowledgeable staff to handle your concerns.
USAA Rewards American Express Card Rates and Fees
As a USAA Rewards American Express Card user, you have to pay some fees for the service, including those that we’ll be talking about below:
1. Annual Fee
Usually, credit card companies charge an annual fee to their customers. The best thing about the USAA Rewards American Express Card is that it has a ZERO annual fee. There are no conditions that you need to meet to enjoy this perk.
2. Foreign Transaction Fee
If you often travel and use your credit card to pay for your purchases in another country, foreign transaction charges can take a toll on your budget. With this credit card, however, you don’t have to worry. It does not have a surcharge for foreign use.
3. Balance Transfer Fee
When transferring a balance from another credit card, USAA charges a 3% fee of the amount. This is pretty much a standard fee that you will find in other credit cards as well.
4. Cash Advance Fee
You can use your USAA Rewards American Express Card as an ATM if you need cash quickly. This is through applying for a cash advance. However, you might want to think twice before doing so, as the card charges a 3% fee based on the total cash advance.
5. Penalty APR
In other banks, you will have an interest rate if your payment is late or if you go over the credit limit. Good thing the USAA Rewards American Express Card does not have such a surcharge.
6. Regular APR
However, there are still other interest rates that you will have to settle, such as the regular APR. This is a variable rate, which can range from 9.90 to 25.90%. It can be higher or lower depending on the index that the bank identifies.
7. Late and Returned Payment Fee
As a responsible credit card holder, pay on time. More importantly, make sure that your payments will go through, especially if it is a check. If you miss the payment deadline or if your check has been returned, the bank will charge a maximum penalty of $35. If your first late payment is within the first six months, the penalty is only $25.
8. Over-Limit Fee
A lot of people fail to monitor their credit card spending. It results in going over the credit limit that a bank assigns. It has a corresponding penalty. However, with USAA Rewards American Express Card, there is no over-limit fee.
Again, what does the USAA Rewards American Express Card offer? New users of the USAA Rewards American Express Card automatically get 2,500 points as a welcome treat. This card gives you a chance to earn points with your everyday expenses, specifically 3x for dining, 2x for gas and grocery, and 1x for others. Like other cards, this card also has no annual and foreign transaction fees.
USAA Rewards American Express Card Pros and Cons
If you cannot decide if this is a good card or if you should keep on looking, here’s a quick look at the good and the bad.
Pros of USAA Rewards Credit Card
Below are some of the most compelling reasons to use the USAA Rewards American Express Card:
- Earn rewards on all your purchases
- No annual fee
- Has a welcome bonus offer to new members
- Allows multiple options for reward redemption
- Does not charge a foreign transaction fee
- Comes with state-of-the-art security features
- Responsive and reliable customer service
Cons of USAA Rewards Credit Card
Despite all the good things, USAA Rewards American Express Card has some drawbacks, including the following:
- Interest rates are quite high
- Does not have a 0% introductory APR
- Membership is limited to military personnel and their families
Application Requirements for USAA Rewards American Express Card
If you want to apply for this credit card, below are some of the most important requirements:
- A current or former member of the US military, or family of military
- A US citizen or a permanent resident of the country
- At least 18 years old
Using Your Rewards
It is also essential that you understand the basics of your card’s reward system to make the most of the points that you accumulate. You can claim it in the form of the following:
- Airline travel,
- Merchandise or gift,
- Cash reward,
- Cruise travel, and
- Charitable contribution.
If you do not want to use the rewards you have, you can give them to someone else. The bank offers the flexibility to transfer your rewards to another person or card that the terms and conditions allow.
Once you are ready to redeem your rewards, you can do so on the bank’s website or mobile app. Alternatively, you can also call them, and a representative will walk you through the redemption procedure.
You can still redeem your points after closing your account. However, you only have 90 days to do so from the termination of your credit card. Call the bank immediately to avoid any problem.
Conclusion: USAA Rewards American Express Card
The USAA Rewards American Express Card does not have the bells and whistles of other cards, but it got the basics covered. Among others, it is best known for offering three reward points for dining, two points for gas and grocery, and one point for every dollar spent on other purchases.
Aside from the everyday rewards, this is also an excellent card because the bank does not charge annual and foreign transaction fees. It is good for people who often travel. More so, it also has state-of-the-art security features and reliable customer service. One problem, however, is that it is exclusive to past and present military members and their families.