Update 3/27/26: The card now has a $200 signup bonus after spending $1,000. (Previously there was no signup bonus.) Tip to the reader AND
Update: Changes to the card:
- 5% cash back on gas and base purchases are no longer combined together as one category. Now Gas has a cap of $3k and military base purchases have a cap of $5k, per calorie. year.
- 2% cash back on groceries is now 3%, per calorie. year, keeping the same $3,000 cap.
- Foreign transaction fees now 0%
- Rewards are paid monthly rather than annually
Original Post 12/17/14: This guest post was submitted by Toby Cobb who is a frugal traveler who was once in the USMC. He tries to use points and miles to spend less money and more time with his family. If you would like to submit a guest post then please do read our instructions firstif your post is accepted then you will receive $50 as our way of saying thanks.
USAA has recently launched a new range of credit cards, the most interesting being the Cashback Rewards Plus American Express. The biggest selling point of this card is the 5% cash back on gas and military base purchases and the lack of an annual fee. Note, however, that applications are limited to USAA members.
The good and the bad
Positive points of the card:
- 5% cash back on gas and military commissaries, exchanges and stores¹ on up to $3,000 in gas purchases per year
- 2% cash back on groceries up to $3,000 in grocery purchases each year
- 1% cashback on other unlimited purchases
- No annual fee
- APR 0% introductory on balance transfers for 18 months
- EMV chip
- Cash advance fees are waived when you transfer funds electronically to a USAA deposit account.
- No APR penalty
Negatives of the card:
- 5% limited to $3,000 in purchases each year.
- 3% balance transfer fee (up to $200)
- 1% Foreign Transaction Fee
Other points of interest:
Whenever we talk about USAA, I have to mention their outstanding customer service. They have always been great to me, regardless of the product.
Additionally, there are special SCRA (Service Members Civil Relief Act) benefits, but they are actually pretty sweet. A 4% APR when you’re established might sound good, but Barclay and Amex completely waive all fees and give you a 0% APR the entire time you’re on Active Duty.
(Read: Annual credit card fee waiver and other benefits for incumbents)
USAA Membership:
You are right if you fit into these categories.
- Active, retired and honorably separated officers and enlisted personnel of the US military.
- Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS).
- Adult children whose qualifying parents have or had a USAA auto or property insurance product.
- Widows and widowers of USAA members who have or had a USAA auto or property insurance policy.
You can find more information here.
Recommendation:
I would recommend this card to someone who spends $3,000 each year on military exchanges. Military exchanges are non-reward spending on other credit cards, so the most you’ll probably be able to do is 2.2% with Arrival Plus card OR maybe 3% with JCB Muraki .
(Read: The best credit cards for non-reward spending)
I would not recommend this card to those who can get much higher value from their credit card records and who are not shopping on a military basis. 5% cash back on gas is easily achievable with the Fort Knox Credit Union 5% Gas Card, as there is no limit. Or check ours best gas card site for other options.
My verdict
USAA emailed me a default offer a few weeks ago and I tried to change my old USAA Platinum Mastercard product to Cashback Rewards Plus. I was unsuccessful. I can get more value from the 5% gas rewards, but you can’t exchange Mastercard for Amex. And since USAA won’t let you move difficult withdrawal even for an increase in the credit linelooks like my oldest card will almost certainly be the one with the lowest credit limit.
USAA also launched the Preferred Cash Rewards World MasterCard® with chip technology, which offers 1.5% cash back on all purchases. Given that there are numerous cards that earn 2% or more, this is not a particularly interesting offer.
Thanks again Toby for this guest post. If you have any questions related to the military loan, please feel free to ask it in the comments. If you are interested in submitting a guest post, then I would recommend it reading this first.
