PenFed Power Cash Rewards Visa Signature® Card
vs. USAA® Preferred Cash Rewards Visa Signature® Card

Q: Do either of the cards have an annual fee?

No, both cards have no annual fee , making them cost-effective options.

Discover the best fit for your wallet. PenFed Power Cash Rewards recognizes loyalty with higher cash back, while USAA Preferred Cash Rewards offers a longer introductory APR period.

By Doug Milnes, CFA

Edited by Denise Cristobal

Updated: December 1, 2024

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Both the PenFed Power Cash Rewards Visa Signature® Card and the USAA® Preferred Cash Rewards Visa Signature® Card are appealing, with no annual fees and cash back on every purchase. However, the USAA Preferred Cash Rewards edges ahead with its slightly higher cash back score and the added benefit of no foreign transaction fees, making it a strong contender for those who travel.

Despite this, the PenFed Power Cash Rewards card offers 0% balance transfer APR for 12 months, which those looking to manage existing credit card debt should not overlook.

PenFed Power Cash Rewards Visa Signature® Card

USAA® Preferred Cash Rewards Visa Signature® Card

MoneyGeek Rating

3.9/ of 5

Rates & Fees

MoneyGeek Rating

4.2/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

REVIEW & APPLY

On Issuer's Site

Regular APR
17.99% variable
16.40% – 28.40% variable
0% APR Offer
-
-
Intro Offer
Earn $100 Bonus Offer Statement Credit
Earn a $200 reward bonus
Rewards Summary
Earn 1.5% – 2% cash back
Earn 1.5% cash back
Balance Transfer Offer
0% Introductory Balance Transfer APR for 12 months
-
Balance Transfer Fee
3% fee applies to each transaction
5% of the amount of each Balance Transfer.
Annual Fee
$0
$0
Recommended Credit
670–850 (Good to Excellent)
670-850 (Good to Excellent)
Penalty APR
17.99%
None
Not sure?
The USAA Preferred Cash Rewards edges out the PenFed Power Cash Rewards with its potential for higher cash back rewards and a lower balance transfer fee. While both cards offer 1.5% cash back, PenFed Honors Advantage Members can earn 2% with PenFed Power Cash Rewards. Additionally, the PenFed card's balance transfer fee is lower at 3% compared to USAA Preferred Cash Rewards' 5%. However, the USAA card may appeal to those who value a wider range of APRs and travel benefits. Choose PenFed Power Cash Rewards for higher cash back potential or USAA Preferred Cash Rewards for travel perks.

Which Card Is Better for You?

You might prefer the PenFed Power Cash Rewards if you're looking for a card that rewards every purchase with cash back and offers a welcome bonus. With a higher cash back rate for Honors Advantage Members and a 0% introductory APR on balance transfers, it's a strong choice for those who can meet the credit union membership requirement.

You might prefer the USAA Preferred Cash Rewards if you value a card that offers a straightforward 1.5% cash back on all purchases without the need for military affiliation. The longer 0% introductory APR on purchases can be particularly beneficial if you plan to make large purchases and pay them off over time.

Head-to-Head Comparison: Card Details and Features

Evaluating APRs, fees, credit requirements, rewards and other features clarifies which card aligns with your financial habits. For instance, if you're a PenFed member, the PenFed Power Cash Rewards may offer greater benefits, whereas the USAA Preferred Cash Rewards could be more suitable for those eligible for USAA membership and seeking travel protections.

Regular APR: USAA Preferred Cash Rewards

The USAA Preferred Cash Rewards offers a lower APR to those who qualify, starting at 17.15%, compared to the PenFed Power Cash Rewards' 17.99% variable APR.

Annual Fee: Tie

Both the PenFed Power Cash Rewards and the USAA Preferred Cash Rewards have no annual fee, making them equally attractive for those looking to avoid extra costs.

Introductory 0% APRs: PenFed Power Cash Rewards

PenFed Power Cash Rewards is better for introductory 0% APRs. It offers a 0% introductory rate on balance transfers for 12 months, while USAA Preferred Cash Rewards does not offer any introductory 0% APRs.

Rewards: PenFed Power Cash Rewards

The PenFed Power Cash Rewards card is better for rewards than the USAA Preferred Cash Rewards card. Although both cards offer 1.5% cash back, PenFed Honors Advantage Members earn 2% on all purchases.

Welcome Offers: USAA Preferred Cash Rewards

The USAA Preferred Cash Rewards offers a better welcome bonus, featuring a $200 bonus after spending $1,000 within 90 days of account opening. PenFed Power Cash Rewards card's welcome offer is a $100 statement credit after a $1,500 spend in the first 90 days.

Recommended Credit Score: Tie

Both the PenFed Power Cash Rewards and the USAA Preferred Cash Rewards cards require a credit score range of 670 to 850 (good to excellent), making them equally accessible to individuals within this credit score bracket.

Penalties and Fees: Tie

Both cards have their advantages when it comes to penalties and fees. The PenFed Power Cash Rewards card offers lower late fees that vary by balance and has no cash advance or foreign transaction fees. On the other hand, the USAA Preferred Cash Rewards card does not have a penalty APR and waives cash advance fees for electronic transfers to USAA accounts. It also has no foreign transaction fees. Considering these factors, it's a tie between the two cards regarding penalties and fees.

Issuer Satisfaction: USAA Preferred Cash Rewards

The USAA Preferred Cash Rewards is better for issuer satisfaction, with a rating of 4.8 for its issuer, USAA. There is no rating for PenFed Credit Union, which issues PenFed Power Cash Rewards.

Other Features & Perks: Tie

Both cards offer unique perks. PenFed Power Cash Rewards provides cell phone protection, travel accident coverage and access to Visa’s concierge service. USAA Preferred Cash Rewards offers comprehensive travel and retail benefits such as zero liability for unauthorized transactions, auto rental coverage and travel accident insurance.

Rewards Comparison

When it comes to rewards, both the PenFed Power Cash Rewards and the USAA Preferred Cash Rewards cards offer a straightforward 1.5% cash back on all purchases. However, the PenFed card takes a slight lead for those who qualify for the PenFed Honors Advantage program, increasing the cash back rate to an impressive 2%. While the USAA card doesn't have a higher tier of rewards, its simplicity and lack of an annual fee make it a solid contender for consistent cash back earnings.

The table below shows the bonus categories to help you compare the rewards programs of these cards.

Category	PenFed Power Cash Rewards	USAA Preferred Cash Rewards
All Purchases	1.5%/2% for PenFed Honors Advantage Members	1.5%

Redeeming Rewards

Both the PenFed Power Cash Rewards and USAA Preferred Cash Rewards offer non-expiring cash back, ensuring you can redeem your rewards on your schedule. Redemption options for both cards are flexible, allowing you to use your cash back similarly to cash, such as for gift cards or statement credits.

Methodology

MoneyGeek examines and rates credit cards like the PenFed Power Cash Rewards and USAA Preferred Cash Rewards based on their performance in various use cases. The highest-scoring use case for these cards is cash back.

The evaluation for cash back cards includes a comprehensive analysis of factors such as the effectiveness of the rewards program and the return on investment for offers.

FAQ: PenFed Power Cash Rewards vs. USAA Preferred Cash Rewards

What are the cash back rewards for each card?

Earning cash back can vary. PenFed Power Cash Rewards offers up to 2% back for certain members, while USAA Preferred Cash Rewards provides 1.5% back on all purchases.

Do either of the cards have an annual fee?

No, both cards have no annual fee, making them cost-effective options.

Are there any introductory offers available?

PenFed Power Cash Rewards has a 0% balance transfer offer for 12 months.

What are the foreign transaction fees for these cards?

USAA Preferred Cash Rewards has no foreign transaction fees, which is ideal for travelers.

What credit score is needed for each card?

Both cards recommend a credit score of 670 to 850.

About Doug Milnes, CFA

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.

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*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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PenFed Power Cash Rewards Visa Signature® Card vs. USAA® Preferred Cash Rewards Visa Signature® Card