USAA Preferred Cash Rewards Credit Card review: 1.5% cash back for military members

USAA Preferred Cash Rewards Visa Signature Credit Card Overview

The USAA Preferred Cash Rewards Visa Signature® Credit Card is a good cash-back option for current and former military members, as well as their spouses and dependents. While it lacks an introductory APR offer or exclusive perks, this card offers a no-frills experience with unlimited 1.5% cash back on purchases and no annual fee, making it a solid choice for military members seeking a simple and rewarding cash-back card. Card rating*: ⭐⭐⭐½

*Card rating is based on the opinion of TPG's editors and is not influenced by the card issuer.

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

Let's go over the pros and cons of having this card in your wallet.

The information for the USAA Preferred Cash Rewards Visa Signature® Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

USAA Preferred Cash Rewards Credit Card pros and cons

USAA Preferred Cash Rewards Credit Card welcome offer

The USAA Preferred Cash Rewards Credit Card offers a $200 reward bonus when you spend $1,000 on qualifying purchases within the first 90 days of account opening.

That's a solid offer for this card's history, although you can definitely do better with some of the more popular card offerings out there.

Related: The best credit card welcome bonuses

USAA Preferred Cash Rewards Credit Card benefits

You won't enjoy many lavish benefits on this no-annual-fee card. Still, the USAA Preferred Cash Rewards Credit Card provides standard travel and shopping protections — such as travel accident insurance and extended warranty protection on U.S. manufacturers' warranties — plus no foreign transaction fees.

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It also comes with cellphone protection, which reimburses cardholders up to $500 if an eligible cellphone is stolen or damaged. In order to be eligible for this coverage, you much charge your monthly phone bill to your USAA credit card.

Related: Should you get travel insurance if you have credit card protection?

Earning cash back on the USAA Preferred Cash Rewards Credit Card

The USAA Preferred Cash Rewards Credit Card offers unlimited 1.5% cash back on purchases, with no category restrictions or cap on cash back.

If you're a current or former military member or a family member of someone who serves, it could be a nice starter in the world of cash-back cards.

Related: Cash back vs. travel rewards: How to choose a credit card

Redeeming cash back on the USAA Preferred Cash Rewards Credit Card

Cash back earned with the USAA Preferred Cash Rewards Credit Card never expires, meaning you can redeem cash back on your own schedule.

You can redeem cash back as a statement credit or deposit it directly into a USAA checking or savings account. You could also redeem for gift cards, charitable contributions and travel purchases.

Related: Why you may want a cash-back card

Which cards compete with the USAA Preferred Cash Rewards Credit Card?

There are a handful of other simplified cash-back cards on the market that compete with the USAA Preferred Cash Rewards Credit Card:

• If you want simple cash rewards: The Citi Double Cash® Card (see rates and fees) offers up to 2% earnings on all purchases — 1% when you make a purchase and another 1% when you pay it off. Plus, you can convert your rewards to fully transferable ThankYou points with another Citi card. Read our full review of the Citi Double Cash.
• If you want lucrative earning rates: The Blue Cash Preferred® Card from American Express is one of the best cash-back cards on the market. You'll get an excellent return across various bonus categories and a healthy welcome offer. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout. Read our full review of the Blue Cash Preferred Card from American Express.
• If you want rotating bonus categories: The Chase Freedom Flex® (see rates and fees) comes with 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 also earn 5% back (up to $1,500) on purchases in rotating categories each quarter when you activate. For more details, check out our full review of the Freedom Flex card.

For additional options, check out our full list of the best cash-back credit cards.

Related: How to redeem Citi ThankYou Points for maximum value

Is the USAA Preferred Cash Rewards Credit Card worth it?

For military members, including current and former personnel, as well as their spouses and dependents, the USAA Preferred Cash Rewards Credit Card is a suitable choice for cash-back rewards. Although this card does not provide special perks, it offers a straightforward experience with unlimited 1.5% cash back on purchases and no annual fee.

Bottom line

The simple experience of the USAA Preferred Cash Rewards Credit Card makes it an attractive option for military members and their families who want the chance to earn easy cash back on purchases.

It's a solid option for military members looking for a straightforward and rewarding card that won't hurt the wallet. However, there are more lucrative cash-back cards available.

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.