What is a USAA Credit Card and Which are the Best?

USAA stands for the United States Automobile Association. It is not a corporation but rather an inter-insurance exchange that started up in the 1922 because a group of U.S. Army officers needed auto insurance that they couldn’t get from existing insurers. As a result, USAA tends to be best-known for providing insurance policies to people who are either serving or have served in the U.S. military as well as their families. However, it is important to note that USAA offers other financial services to the relevant individuals as well, with an excellent example being its credit cards. Due to this, people who are searching for their next credit card might want to check out USAA to see what it has to offer them so long as they meet the right requirements.

What Are Some Common Characteristics of USAA Credit Cards?

Perhaps unsurprisingly, USAA credit cards are designed for military families. As a result, it should come as no surprise to learn that they have a lot of commonalities that are meant to make their more suitable for their target users’ particular needs and circumstances. For example, most USAA credit cards have no annual fees, though it should be noted that there are some exceptions such as its secured credit cards. Furthermore, USAA credit cards will offer a 4 percent APR rather than the 6 percent APR mandated by the Servicemembers Civil Relief Act for people who are deployed, which is in addition to other savings for people in the same situation. On top of this, USAA credit cards won’t increase their APRs as a penalty for people who miss a payment, which can help relevant individuals save a fair amount of money should they ever find themselves in a shaky financial situation. Summed up, USAA credit cards offer good value that should make them appealing to a lot of people out there.

Of course, USAA credit cards have some commonalities that make them less appealing to interested individuals as well. For example, they are limited to people who can get USAA insurance, meaning that people who do not fall into one of the qualified groups should forget about getting one of them. Furthermore, while USAA credit cards have an excellent rewards programs, interested individuals should know that their reward points can be redeemed for most but not all of the major carriers, which is something that might concern people who are picky about the airline that they fly on. Finally, it should be mentioned that USAA credit cards tend not to have particularly spectacular introductory offers, not least because they are designed to focus on long-term value rather than short-term flashiness.

Which One Is Best?

With that said, USAA credit cards encompass a number of financial products with a wide range of features. This is a good thing because this means that interested individuals can get something that is better-suited to their personal needs and circumstances even if they restrict their choice to a USAA credit cards.

For example, someone with bad credit has an excellent solution in the form of the USAA Secured Card Visa Platinum Card. Like its name says, interested individuals will have to make a deposit for the purpose of serving as collateral. However, said deposit will do more than just give them access to credit even if they have bad credit, seeing as how it will be put into a certificate of deposit that will earn them interest throughout. Moreover, interested individuals can actually raise their credit limit by choosing to deposit more into their certificate of deposit, which can be very useful indeed. Based on this, someone who chooses the USAA Secured Card Visa Platinum Card can use it to build their credit score while getting outstanding value.

In contrast, someone who wants their rewards in the form of cash should choose the Preferred Cash Rewards World Mastercard, which is very simple in the sense that it offers unlimited 1.5 percent cash back on purchases with no regard for what those purchases might be whatsoever. In other words, it is an excellent choice for people who are planning to make frequent use of their credit cards. Meanwhile, someone who is planning to carry a balance might want to look into the USAA Rate Advantage Visa Platinum Card, which offers a low interest rate for its users that is particularly so if they happen to have a good credit score.

Summed, USAA offers a number of credit cards. Each of which has its own particular uses that make it particularly well-suited to a particular segment of users.