While the relatively low interest (14.15 to 28.15 percent) along with the 1.5 percent rewards rate can be appealing for those who spend outside traditional categories, the benefits and perks are limited. For those who want more from their card, it may be better to look at alternatives.
USAA Preferred Cash Rewards Visa Signature card vs. USAA® Cashback Rewards Plus American Express® Card
The USAA Cashback Rewards Plus American Express is a great addition for those on active duty as rewards 5 percent cash back on military base and gas station purchases. It also has a lower interest rate than the USAA Preferred Cash Rewards Visa—11.90 to 25.90 ongoing APR.
It has similar drawbacks to the Preferred Cash Rewards card with its lack of welcome bonus and intro APR offers. However, it also charges foreign transaction fees, cutting into your earnings should you be stations. Still, if most of your spending is on the military base, it will be higher than the 1.5 percent you would with the Preferred Cash Visa.
USAA Preferred Cash Rewards Visa Signature card vs. Navy Federal Credit Union Visa Signature® Flagship Rewards Credit Card
Despite the name, Navy Federal caters to all military branches and veterans. With their Navy Federal Credit Union Visa Signature Flagship Rewards credit card, cardholders can earn 3X points on travel and 2X points on all other purchases. It also comes with perks like Global Entry or TSA credits and collision damage waivers on top of the Visa Signatures it shares with the USAA Preferred Cash Rewards card.
Yet, these extra perks come at a price of $49 annual fee (waived the first year). Some may prefer a no annual fee card, but those who travel often and take advantage of the extra perks will find the fee easy to offset.
Best Cards to pair with the USAA Preferred Cash Rewards Visa Signature Credit Card
The easiest was to take advantage of the USAA Preferred Cash Rewards Visa Signature Credit Card’s flat rewards rate is to pair it with a more traditional rewards card. You’ll especially want to look for one with a wide range of specialized categories at higher rewards rates. You also receive more traditional perks like a welcome bonus and intro APR offers.
For example, the Discover it® Cash Back credit card offers 5 percent cash back in different categories throughout the year up to the quarterly maximum of $1,500 when you activate, then 1 percent. One quarter, you may earn on grocery stores and streaming services and then the next you could earn on restaurant purchases. You could focus on specific categories with Discover it® Cash Back and use the USAA Preferred Cashcard for all other purchases while taking advantage of the intro APR offer on purchases.