USAA Rewards American Express credit card review (2024)
The American Express (AmEx) credit card from the USAA Rewards bank (USAA) provides a floating interest rate in the range of 12.15%-28.15%. The lower limit is 3-4% less than that of the majority of other banks. The rate depends on the creditworthiness of the client. However, new clients get a 0% rate during the first 15 months. The card also has a system of bonuses which are earned as cash back points for all purchases. For some categories, the coefficient is tripled. Among the additional advantages, it is worth noting a low transaction fee and favorable service conditions for travel.
About the USAA Rewards American Express credit card
The USAA Rewards American Express credit card is offered by one of the top US banks. Also, this card is issued under the Visa Signature standard, which offers various travel benefits (accident insurance, free car rental, compensation for luggage issues, and coverage for cancellation and interruption of travel). The loan rate, with a range of 12.15%-28.15%, is estimated as the average for the segment. However, no other well-known bank offers such a low starting barrier, which usually starts is around 15-16%. It should be noted that only clients with the highest credit score of about 850 points can apply for this card under such favorable conditions.
It is important to say that the USAA Rewards American Express credit card has a flat fee of 3% of the transaction amount for all transactions that lead to a change in the account balance. Moreover, there is no mandatory minimum payment or extra conditions. This fee also applies to international transfers, which makes the fees objectively profitable with the American Express card from USAA. Following the modern standard of internet banking, you can manage the card through a mobile app, which significantly increases the comfort and efficiency of using the services.
Main features of the USAA Rewards American Express credit card
It is advisable to choose a credit card based on an objective assessment of its features and advantages over its competitors. The first group of parameters that should be analyzed is the basic conditions for using the card, such as its interest rate, maintenance (subscription) fee, etc. The Traders Union experts has summarized such data for the USAA Rewards American Express credit card in the table below.
| Parameters | USAA Rewards American Express |
|---|---|
Subscription fee |
$0 |
Standard APR |
12.15%-28.15% |
The interest rate for new clients |
0% in the first 15 months |
Recommended credit score |
690-850 (Excellent) |
Pros and cons of the USAA Rewards American Express credit card
In addition to the main characteristics, each AmEx credit card has features that can be defined as pros or cons for the client. All credit cards have their cons, and USAA Rewards American Express is no exception. The table below shows the main features of this credit card, determined by TU experts, based on a comparison with its competitors and user feedback.
👍 Pros
•No subscription fee
•The lower limit of the annual rate (12.15%) is exceptionally minimal.
•A flat transaction fee of 3%
•Cash back points for all purchases or orders
•There are categories with an increased cash back ratio
•Advantages for travelers provided by the Visa Signature standard
👎 Cons
•To apply for a card, you need a credit score of at least 690
•Cash back is earned in points, not real money
•The upper limit of the annual rate (28.15%) is higher than that of many of its competitors
USAA Rewards American Express credit card benefits
Benefits include special advantages that the cardholder receives automatically when they meet certain conditions. As a rule, the main benefits of credit cards issued by large banks are cash back and a reduced (or zero) interest rate for new users. Plus, the features offered by the credit card standard. The main benefits of the USAA AmEx credit card are listed below.
Increased cash back
A USAA AmEx cardholder receives cash back in the form of points on all online or offline purchases and orders. Bonuses are credited within 48 hours after making a purchase. For most purchases, the ratio is "one point per dollar". However, points are doubled for purchases in grocery stores and tripled for orders in restaurants. Also, the client receives double points when they make purchases at a gas station. There's a modest one-time offer of 2,500 points after you make your first purchase using a USAA Rewards American Express credit card.
Zero interest rate for new clients
This benefit is not unique, since almost all top banks offer similar or equal conditions. From the day the client has received the card and uses it, a 15-month period begins, during which the client uses the rate of 0% instead of 12.15% -28.15%. This means the client is not overpaying the bank for the loan. This case resembles the interest-free overdrafts offered by many digital banks. This is an extremely advantageous condition, as it naturally attracts many new clients.
Travel benefits
USAA Rewards Bank issues credit cards that use the Visa Signature standard. This standard offers certain advantages for travelers (note that the same standard card issued by different banks may offer different benefits). In the case of an AmEx card, its holders can rent a car for free in some services, as well as receive a refund for tickets if the trip is canceled or interrupted. The card provides coverage against accidents during travel (no need to issue a policy), as well as compensation in cases of delay or loss of luggage.
Best Crypto CardsUSAA Rewards American Express credit card fees
For all transactions that result in a change in the account balance, there is a flat fee of 3%. This is a standard fee for most American credit cards. The difference is that USAA Rewards American Express does not have an alternative fixed payment. Pay attention to the current conditions for fees and penalties:
No penalty APRs. If the client pays the loan within 25 days after the end of the payment cycle, the additional fee is 0%.
There is no subscription fee and fee for external transactions (only the mentioned 3%, excluding electronic transfers).
In the case of a late payment or refund, the penalty is $35. There is no penalty for exceeding the loan limit.
These are all the fees that the USAA Rewards American Express credit card has. Compared to its competitors, it has several standard fees and low penalties. But don't forget that you will need a minimum credit score of 690 points to apply for the card.
Comparison with competing cards
Comparing the capabilities of this AmEx credit card with the capabilities of its competitors is considered by many clients to be a key selection criterion. This is partly true, because if the card has the lowest rate and minimum fees, then the absence of a bunch of additional benefits and bonuses may not be critical. The table below shows details on the USAA Rewards American Express card and some competing cards. The information is regularly updated.
| Parameters | USAA Rewards American Express card | Capital One Venture X Rewards Credit card | Citi Double Cash card | Discover it Cash Back card | Bank of America Travel Rewards credit card |
|---|---|---|---|---|---|
Maintenance fee |
$0 |
$395 |
$0 |
$0 |
$0 |
Standard APR |
12.15%-28.15% |
18.49%-25.49% |
16.24%-26.24% |
14.24%-25.24% |
16.24%-26.24% |
The interest rate for new clients |
0% in the first 15 months |
Equal to standard interest rate |
0% on money transfers for 18 months |
0% on purchases and money transfers for 15 months |
0% on purchases for 18 payment cycles, 0% on money transfers for 2 months |
Recommended credit score |
690-850 (Excellent) |
720-850 (Excellent) |
690-850 (Excellent) |
690-850 (Excellent) |
690-850 (Excellent) |
Who can use a USAA Rewards American Express credit card
The AmEx credit card from the USAA Rewards bank is considered by experts as universal. The first reason is the ultimate low minimum rate, which is 12.15%. The fine point is that you need a credit score of about 850 to get such a rate. The second reason is a 3% fee on all transactions resulting in balance changes, including international transfers. At the same time, there is no fee for electronic transfers. New clients receive a 0% rate for the first 15 months, and the bank gives 2,500 bonus points for the first purchase using the card.
All this makes the USAA Rewards American Express credit card profitable, including for financially active people. The more you spend the more benefits you get. It’s that simple. Also, there are no penalties for exceeding the loan limit.
Conclusion
The USAA Rewards American Express credit cards have quite competitive parameters, obvious advantages, and some shortcomings. For example, the minimum annual rate is lower than that of any other bank, while the maximum is higher than that of most competitors. If the client travels a lot, they will be happy to use some of the benefits offered by the Visa Signature standard. For instance, they can rent a car for free through partner services, while the card provides accident and luggage insurance coverage. These benefits significantly increase the comfort of the trip, so the USAA Rewards American Express credit card is equally convenient for both the average client and those who are frequent travelers.
FAQ
What rates does the USAA Rewards American Express credit card offer?
The standard annual rate is floating and ranges from 12.15% to 28.15% and depends on the user’s current credit score. It is worth noting that the minimum level is lower than that of other banks. New clients get a 0% rate for the first 15 months.
What fees does the USAA Rewards American Express credit card charge?
The standard fee is 3% for all transactions that lead to a change in the account balance. This fee is also applicable to international transfers. However, there is no fee for electronic transfers.
What are the penalties of the USAA Rewards American Express credit card?
This card does not impose most of the sanctions typical of other credit cards. This applies to the penalty APR and the penalty for exceeding the loan limit. The only penalty is $35 for late payment.
How profitable is the cash back program of the USAA Rewards American Express credit card?
The disadvantage is that it is issued in points, and not in real money. The ratio is "one point per dollar". For some categories, there is a doubling or even tripling of the points, which is quite profitable. Bonuses can be used with no limits as traditional money to pay for services, purchases, or orders.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
Mikhail’s motto: Learn something new and share your experience – never stop!
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.