Full Review

The USAA® Rewards™ American Express® Card has a $0 annual fee, a 0% foreign transaction fee and solid rewards in everyday spending categories. USAA Rewards Amex cardholders earn 3 points per $1 spent dining out as well as 2 points per $1 spent on gas and groceries, plus 1 point per $1 on everything else. USAA Rewards Amex points are worth a penny apiece on average, which means the card’s earning rates amount to 1% to 3% cash back. That also means the initial bonus of 2,500 points that cardholders receive after making their first purchase is worth about $25.

The USAA Rewards Amex card does not excel when it comes to financing, however. Its regular APR could be above average, depending on your creditworthiness when you apply. There is no reduced introductory APR, either – just a temporarily low rate available to eligible military personnel. You can learn more below, from our summary of the key things you should know before deciding whether or not to apply for the USAA Rewards Amex.

Highlights

• Small first-purchase bonus. The USAA Rewards American Express Card gives you 2,500 bonus points after your first purchase. The good news is you don't have to meet a high initial spending requirement, as is the case with most credit cards offering a rewards bonus. The bad news is this particular bonus is well below the market average of 22,150 points/miles, according to WalletHub’s latest Credit Card Landscape Report.

• Best for dining, gas and groceries. The USAA Rewards Amex will give you 1 point per $1 spent on most purchases, which is disappointing considering that the average rewards card offers 1.17 points/miles per $1. Fortunately, not all purchases are subject to this paltry earning rate. You get 2 points per $1 spent on gas and groceries as well as, 3 points per $1 spent on dining - with no earning caps. That's certainly better, allowing the card to be above average if you use it solely for dining, gas and groceries.

• No annual fee. The USAA Rewards American Express Card will save you about $19.76 per year in annual fees compared to the average credit card but $0 relative to most other USAA cards. Besides, there are hundreds of no annual fee credit cards available, and many of them offer better rewards.

• Potential for a very high APR. The USAA Rewards Amex Card's regular APR depends on your overall creditworthiness. The low end of the advertised range is well below the average among credit cards for people with excellent credit, according to WalletHub research. However, the high end crushes the averages for cards that require good credit and fair credit, respectively. So you definitely don't want to use the USAA Rewards American Express Card to carry a balance from month to month if you're assigned a regular rate at the high end of the range. And you should probably take a pass, regardless, given that you can get 0% introductory rates (which this offer doesn't have) from many other cards.

• Low military APR for a limited time. The one definitively attractive aspect of this card's financing offer is the special 4% rate that military members get for a year during deployment or official relocation. Plus, if you have a balance on this card when you begin active duty, you'll keep that 4% rate until one year after you finish. And if you serve in a "qualified military campaign," you're entitled to a rebate for all finance charges from that period. But none of that is unique to the USAA Rewards Amex. All USAA cards have the same offer, and the Rewards Amex is far from the best of the bunch.

• Good credit or better required. More than 40% of potential applicants won't be able to meet the USAA Rewards American Express Card's minimum credit requirement. So you may want to double-check your credit score for free on WalletHub before applying. Even if you decide against this particular card, knowing where your credit stands will go a long way in helping you find the right credit card for your needs.

• Must qualify for USAA. Not everyone can get a USAA credit card. You need to be a current or former member of the military or an immediate family member of such an individual. So don't waste your time if you lack the armed-forces ties.