The USAA Rate Advantage Credit Card offers a lower rate than many credit cards, but you sacrifice any potential rewards.
It can be a good card if you need a low-interest credit card for large purchases and won’t use it for regular purchases.
USAA Rate Advantage Credit Card: Overview
- $0 annual fee
- 0% intro APR for the first 15 months on balance transfers made within 90 days
- Variable regular APR of 12.15% to 29.15%
- No rewards or signup bonuses
USAA Rate Advantage Credit Card: Features
The USAA Rate Advantage Credit Card offers many features that make it attractive for USAA members looking for a low-interest rate card.
Low Annual Percentage Rate (APR)
The average APR on a credit card accruing interest as of the second quarter of 2023 is 22.16%, which is much higher than the low-end of the USAA Rate Advantage Credit Card, which currently offers a rate of 12.15% to 29.15%.
Minimal Fees
The USAA Rate Advantage Credit Card has very few fees, making it an affordable option to keep in your wallet. USAA doesn’t charge an annual or foreign transaction fee, which is great for travelers.
There also isn’t a penalty APR for those who forget to pay on time. However, if you need to transfer a balance, there is a 5% fee, but that is the case for most balance transfer credit cards.
Travel Benefits
Even though it’s not technically a travel credit card, the USAA Rate Advantage Credit Card offers many travel benefits for travel expenses you pay for using your USAA card, including:
- Auto rental coverage so you can decline the pricey coverage at the rental counter
- Travel accident insurance for loss of life or limb while traveling
- Trip cancellation or interruption coverage to help you recoup non-refundable fares or cover extra costs for a delayed trip
- Baggage delay and reimbursement to cover lost or delayed baggage and the cost of replacing necessary items until they surface
Shopping Benefits and Protection
Purchases you make with your USAA Rate Advantage Credit Card have the following benefits:
- Extended warranty protection: Get up to one additional year of coverage in addition to the manufacturer’s warranty
- Concierge services: Get help with shopping or restaurant reservations with a 24/7 concierge available to cardholders
Pros And Cons
It’s essential to consider the pros and cons when comparing USAA credit cards to one another or other available cards. Here’s how the USAA Rate Advantage Credit Card stacks up.
Pros
- No annual fee: Many low-interest credit cards make up for it by charging an annual fee, but the USAA Rate Advantage Credit Card does not charge an annual fee
- Low APR: Low credit card interest rates are hard to come by with today’s higher interest rates, but this card keeps the rates as low as possible for USAA members
- 0% APR introductory rate: New cardholders get a 0% rate on balance transfers and convenience checks for 15 months
- Many perks: USAA cardholders get many more benefits besides a low-interest credit card, including travel and shopping protection and concierge services
Cons
- Hard to qualify for the lowest rate: The lowest rate advertised for the USAA Rate Advantage Credit Card isn’t for everyone; you must qualify for it, but they aren’t transparent about what you need to get it
- No signup bonus: You don’t get any bonuses for signing up, except for the introductory APR
- No rewards: There aren’t any rewards you can earn for using your USAA Rate Advantage Credit card
USAA Rate Advantage Credit Card: Rates And Fees
Paying close attention to the USAA Rate Advantage Credit Card rates and fees is essential. While low-advertised APRs are great, looking at the big picture is important.
- APR Range: Eligible applicants can have a variable regular APR from 12.15% to 29.15%. Again, there’s no guarantee you’ll get the 12.15% rate. If you get a rate much higher, the card doesn’t offer many more benefits than most other credit cards.
- Introductory APR Offers: New cardholders can save on balance transfers and convenience checks for 15 months with a 0% APR. If you pay the balance off before the introductory period ends, you save a lot of money on interest.
- Balance Transfer Fee: However, the 0% APR for balance transfers comes with a catch; you will pay 5% of the balance transferred as a balance transfer fee. That’s $5 for every $100 transferred. It sounds like a little, but it adds up with higher balances.
- Foreign Transaction Fee: The USAA Rate Advantage Credit card doesn’t have foreign transaction fees, so it can be a good card to take when you travel, as those fees can add up fast.
- Rewards Rate: The USAA Rate Advantage Credit Card doesn’t pay any rewards. The largest benefit is the low APR if you qualify.
- Annual Fee: Like all USAA credit cards, the USAA Rate Advantage Credit Card doesn’t have an annual fee.
- Credit Score Requirement: The credit needed for this card ranges from Good to Excellent.
Eligibility And Application Process
Like all USAA credit cards, you must be a member of the USAA and go through the application process to see if you qualify for the USAA Rate Advantage Credit Card.
Membership Requirements for USAA
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, giving everyone access to the benefits of USAA credit cards and other features.
Application Process
You can apply for a USAA Rate Advantage Credit Card online. Some applicants receive an answer immediately, and others receive a response in the mail.
To apply, you must provide your personal identifying information, including your date of birth and Social Security number. You must also disclose your employer and amount of income. USAA will pull your credit and evaluate your income to see if you qualify.
Most people receive their card within 7 to 10 business days if approved.
How The USAA Rate Advantage Credit Card Compares To Other Cards
The USAA Rate Advantage Credit Card offers some great benefits, mainly the lower APR. It’s important to compare it to your other options to ensure it’s right for you.
Here are some popular alternatives:
Wells Fargo Active Cash® Card
Like the USAA Rate Advantage Credit Card, the Wells Fargo Active CashⓇ Card has an introductory 0% APR on balance transfers for the first 15 months, but it applies to purchases, too.
However, after the introductory period, the rate increases to 20.24%, 25.24%, or 29.99%.
The Wells Fargo card doesn’t have an annual fee, and you can earn 2% back on most purchases with no categories to track. Wells Fargo also offers a signup bonus of $200 if you spend $500 in the first three months you have the card.
Simmons Rewards Visa Signature®
The Simmons Rewards Visa Signature® credit card doesn’t have an annual fee. It also has a 0% APR for 12 months on balance transfers cardholders complete within 60 days of opening the card.
The regular APR is higher than the USAA Rate Advantage card, though at 17.50% to 25.50%.
The Simmons Rewards Visa Signature® pays 1.25 points per dollar spent, and if you spend $3,000 within the first three months, you can earn 30,000 bonus points.
Frequently Asked Questions
The USAA Rate Advantage credit card offers many benefits. Here are some common questions about the card.
Who Is the USAA Rate Advantage Credit Card Best For?
The USAA Rate Advantage card is best for military members who plan to keep a balance on their credit card or have a large transfer balance.
It’s best to pay the balance off within 15 months to avoid paying any interest, but if you qualify for an APR on the lower end of their tier, you can save money on interest that way, too.
Since the card doesn’t offer rewards, using it for something other than large purchases doesn’t make much sense.
Is USAA Rate Advantage Credit Card Worth It?
If you often have a credit card balance AND qualify for the lowest APR, the USAA Rate Advantage credit card can be worth it. You might save more money on interest than you would earn on rewards on other cards.
What Is the Interest Rate on the USAA Rate Advantage Credit Card?
The interest rate on the USAA Rate Advantage credit card varies from 12.15% to 29.15%. Your rate depends on qualifying factors, including your credit score and income.
How Do Balance Transfers Work With the USAA Rate Advantage Visa Platinum Credit Card?
You’ll pay a 5% balance transfer fee for balance transfers, but you only pay it once when you transfer the balance.
If you transfer the balance when the card is new, you get a 0% APR on the balance for 15 months, but you must transfer the balance within 90 days of opening the card.
What Security Features Are Offered With the USAA Rate Advantage Visa Platinum Credit Card?
The USAA Rate Advantage credit card includes the following protections:
- Cell phone protection: If you use your USAA credit card for your cell phone bill and your phone is stolen or damaged, you get up to $500 in coverage.
- Purchase security: Items purchased with your USAA credit card are protected from damage or theft for 90 days after purchase.
What Is the Credit Limit for the USAA Rate Advantage Visa Platinum Credit Card?
The credit limit for the USAA Rate Advantage Credit Card varies by applicant. The amount you get depends on your credit score and income.
Is There an Annual Fee for the USAA Rate Advantage Visa Platinum Credit Card?
The USAA Rate Advantage credit card has no annual fee.
Is the USAA Rate Advantage Credit Card a Suitable Option for Your Needs?
The USAA Rate Advantage Credit Card doesn’t pay any rewards, but you likely save much more money with the lower APR if you qualify for the lowest rate.
It’s worth exploring your options and calculating how rewards on other credit cards would compare to the money you’d save on interest using the USAA Rate Advantage card.
Conclusion
The USAA Rate Advantage credit card can be a good option for USAA members who want a low APR for large purchases.
If you know you need to carry a balance, the lower APR (if you qualify) can help you save more money than most rewards credit cards would help you earn.
