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

Updated: October 23, 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.

Credit Card logo for PenFed Power Cash Rewards Visa Signature® Card
PenFed Power Cash Rewards Visa Signature® Card
Credit Card logo for USAA® Preferred 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

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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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 evaluates 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. For a detailed understanding of our scoring process, you can review our ranking methodology.

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

What are the cash back rewards for each card?
Do either of the cards have an annual fee?
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About Doug Milnes, CFA

Doug Milnes, CFA headshot

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.

Read Full Bio »
*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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