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3. USAA Rate Advantage Credit Card: Not equally advantageous for all

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31

reviews

2.8

Rating: 2.8 out of 5.

Great for transferring a balance

Annual Fee: $0

This content is curated by Intuit Credit Karma’s Editorial team using data from members who were approved for this card or similar cards, or who self-matched this card or similar cards. Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse this content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Here’s the average credit limit of members who matched their USAA Rate Advantage Credit Card or similar cards.

% of members by credit limit range

The average credit limit for members who have matched with this card or similar cards is $8,432, with $3,000 being the most common.

Here’s the average credit score of members who matched their USAA Rate Advantage Credit Card or similar cards.

% of members by credit score range

The average credit score for members who have matched with this card or similar cards is 692, with 748 being the most common. Note this is just one of the deciding factors when it comes to getting approved.

Member stats

Updated daily

33.2%

Average credit utilization (or what percent of the card’s credit limit is being used) of members who matched with this card or similar cards.

49 years

Average age of members who matched this card or similar cards.

$98,607

Average annual income of members who matched this card or similar cards. Note: Income may be estimated for some members by Credit Karma and may differ from members’ actual incomes.

Pros and cons

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No annual fee

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Potentially low APR for purchases and balance transfers

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Special low APR for service members on active duty

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No rewards program

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Potentially high APR for those with thin or bad credit

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No 0% intro APR offer on purchases

What you need to know about the USAA Rate Advantage Credit Card

The USAA Rate Advantage Credit Card is a no-frills credit card with a potentially low APR for purchases and balances and no annual fee. But it lacks intro APR offers for purchases and there’s no rewards program. It’s also available only to USAA members.

For USAA members only

First, it’s important to know that not just anyone can get this card. To apply for the USAA Rate Advantage Credit Card, you’ll need to become a member of USAA. Membership is limited to cadets, midshipmen, veterans, active military members and eligible family members.

If you don’t fit this description, you’ll have to look for another credit card from another issuer.

Potential for a low APR, but no guarantee

The USAA Rate Advantage Credit Card has a regular variable APR of 11.4% - 25.4% on purchases, balance transfers and cash advances.

You’ll generally need excellent credit to qualify for the lowest interest rates, which could help you pay less interest in case you need to carry a balance. But if you end up with an APR at the high end of the range, the interest costs could get expensive if you carry a balance from month to month.

In other words, the USAA Rate Advantage Credit Card doesn’t guarantee a “rate advantage,” despite the promise of the card’s name. The lower end is below the average APR for consumer credit cards listed by the Federal Reserve. But the high end of the card’s APR range includes rates more commonly seen from cards specifically marketed for building credit.

Before applying, consider what kind of APR you might qualify for with your credit history. If you have some derogatory marks on your credit reports, you might be better off looking for a card that offers more certainty in its rates.

Special APR during military deployment

There’s good news for active-duty military members: Eligible cardholders may qualify for lower rates with the USAA Rate Advantage Credit Card, at least while deployed. If you have a balance on your card when you enter active duty, USAA offers a 4% APR on any outstanding balances from before deployment. That’s lower than the 6% APR for credit cards guaranteed by the Servicemembers Civil Relief Act.

But anything charged to the card during or after active duty will see the standard rate you qualify for as a cardholder.

Some fees, but not many

When you use the USAA Rate Advantage Credit Card, you won’t have to pay foreign transaction fees, penalty APRs or over-the-limit fees. Fee-free foreign transactions could be especially beneficial for service members stationed abroad.

There’s also no annual fee. But note that the card also lacks a rewards program and sign-up bonus.

Cardholders are responsible for a handful of fees, including a late payment fee of up to $35 and a balance transfer fee of 5% of the amount of each Balance Transfer. There’s also a cash advance fee of 5% of the amount of each Cash Advance. Fee waived when transferring funds electronically to your USAA Bank deposit account. It’s worth noting that the cash advance fee it’s not applied when transferring the funds to a USAA checking account.

Other things to know about the USAA Rate Advantage Credit Card

Though there’s no rewards program, this credit card offers a lineup of core benefits. Here are a few.

• Shopping protections, including price protection and an extended warranty
• Coverage when you travel, such as travel accident and baggage delay insurance

Who this card is good for

The USAA Rate Advantage Credit Card doesn’t come with many bells and whistles. But it could be a good fit if you’re not looking for rewards — and if you have the credit profile to qualify for the lower end of its APR range. That’s especially true if you think a rewards program might entice you into spending more just to earn more points or cash back.

It could also be useful for anyone who’d like to build credit without distractions. Just be careful about carrying a balance, because this card could end up costing you in interest charges, especially if you only qualify for an APR on the higher end of its range.

Of course, many of these details might not matter as much to you as working with an organization that understands the details of military life. Aside from its credit card offerings, USAA also provides benefits like deployment advice, advance military pay, free limited home security during deployment and the option to apply for VA home loans.

Not sure this is the card for you? Consider these alternatives.

• Discover it® Cash Back: This could be a good fit if you want a card with a $0 annual fee that offers rewards.
• USAA® Rewards™ American Express® Card: This card is a good fit if you like the idea of a USAA credit card but would prefer a rewards program.