Navy Federal Credit Union cashRewards Card Review: Solid Cash Back for Fair Credit

The Navy Federal Credit Union cashRewards is a top pick if you’re a Navy Federal Credit Union (NFCU) member who’s starting out on your credit journey. You can qualify for the card with a fair credit rating, but NFCU membership is limited to those with a military background and their families.

Nonetheless, the card lets you earn unlimited 1.5% cash back on all purchases for no annual fee. With a low regular APR and no balance transfer, foreign transaction or cash advance fees, it’s a solid card for minimizing costs. It ranks 13th among the 52 cash back cards we’ve analyzed, with a cash back score of 4.3 out of 5. However, it lacks a 0% introductory APR offer, which is usually found among cash back cards.

Notably, if your credit limit reaches $5,000 and above, you will automatically be upgraded to the Navy Federal Credit Union cashRewards Plus, which offers 2% cash back on all purchases.

If you’re not eligible for an NFCU membership, consider the Citi Double Cash® Card, which has no annual fee, a higher cash back rate of 2% and is available to applicants with fair credit.

To qualify for the Navy Federal cashRewards card, you must be a NFCU member. Membership in the credit union is limited to active military personnel, veterans, Department of Defense employees and their families. Based on user feedback online, approval odds are favorable, especially if the applicant has an existing relationship with Navy Federal. Even applicants with fair credit can qualify for the card. This makes it a good option for people who are new to credit or working on rebuilding their score.

With a single application, you’ll be considered for either the Navy Federal cashRewards or, if approved with a credit limit of $5,000 or more, the Navy Federal cashRewards Plus (it’s practically the same card but offers 2% cash back).

The Navy Federal cashRewards card offers a straightforward rewards program with unlimited 1.5% cash back on all purchases. Although this rate is below the 2% rate of top cash back cards, it remains competitive and the average rate among cash back cards. We score its cash back program 4.3 out of 5.

However, the card lacks elevated earning rates for specific categories. If you tend to spend heavily on certain categories, a cash back card with bonus rates like the Blue Cash Everyday® Card From American Express can be a more lucrative option. Note that cards with bonus rates usually require a good to excellent credit rating.

The cash back you earn can be redeemed as a statement credit or deposited into a Navy Federal account. They never expire as long as your account remains open.

The Navy Federal cashRewards card lacks 0% introductory APR offers, which are common features among cash back cards. However, it does come with the usual $200 welcome bonus.

Introductory APR Offers

The cashRewards card lacks an introductory APR on purchases, which may be a drawback if you want to spread a large purchase over several payments interest-free. Many cash back cards offer a 0% introductory APR for up to 15 months, making them better for this purpose.

Similarly, there’s no introductory APR for balance transfers, which could deter those looking to consolidate debt without immediate interest. For example, the Citi Double Cash® Card offers a 0% introductory APR on balance transfers for 18 months, then a variable APR of 18.49% - 28.49% after that, giving more flexibility for managing debt.

Welcome Bonus

The cashRewards card offers a $200 cash back bonus after spending $2,000 within 90 days of account opening. While this bonus aligns with most cash back cards, the spending requirement is relatively high. For example, the Wells Fargo Active Cash® Card offers the same $200 bonus but only requires $500 in spending.

Cash back cards typically don’t come with fancy perks like airport lounge access, but you can expect these benefits from the Navy Federal cashRewards:

• Credits & Discounts: If you frequently shop at Walmart, you can take advantage of a one-time $98 statement credit toward a Walmart+ membership.

The Navy Federal cashRewards card is light on fees — it has no annual, balance transfer, foreign transaction and cash advance fees. It offers competitive interest rates, with a regular APR ranging from 15.40% to 18.00%, ranking fifth among 52 cash back cards. This combination of low fees and favorable rates makes it a smart choice for cost-conscious cardholders.

Here's a breakdown of the fees and penalties associated with the Navy Federal cashRewards card:

• Annual Fee: None
• Regular APR: 15.40% to 18.00%
• Penalty APR: 18.00%
• Balance Transfer Fee: None
• Foreign Transaction Fee: None
• Cash Advance Fee: None if performed at a Navy Federal branch or ATM; otherwise, $0.50 per domestic transaction or $1.00 per foreign transaction
• Late Payment Fee: Up to $20
• Overlimit Fee: None
• Returned Payment Fee: None

Based on user feedback from online forums, customer satisfaction with the Navy Federal cashRewards is generally positive. We give its issuer a rating of 4.7 out of 5.

Users appreciate the card's straightforward rewards and lack of fees. However, some express frustration over the membership requirement and the absence of an introductory APR offer. Overall, the card is well-received for its simplicity and cost-effectiveness, making it a solid choice for Navy Federal Credit Union members starting their credit journey.

We compare the Navy Federal cashRewards with other cash back cards to show how it compares to the competition.

Since it’s a flat-rate card, you can maximize the Navy Federal cashRewards by pairing it with a cash back card that lets you earn bonus rates on categories where you spend the most.

We recommend the Navy Federal cashRewards card for NFCU members who are starting out on their credit journey. The combination of 1.5% cash back, welcome bonus and low fees are hard to beat among unsecured cards that accept fair credit. The card also has a low regular APR, with even its penalty APR falling below the standard rates on many other cash back cards. We love that the card automatically upgrades to a higher cash back rate once you’ve reached a higher credit line of $5,000.

The only thing to consider is its lack of an introductory APR offer, which might be a dealbreaker if you need to pay off a large purchase over time or manage existing debt.

We evaluated the Navy Federal cashRewards card among 52 cash back cards, focusing on its cash back score. Our assessment considered:

• Effective Reward Rate (40%): Measures the card's overall rewards potential.
• Annual Fee (20%): Evaluates the cost of maintaining the card.
• Introductory Offer ROI (15%): Assesses the value of the welcome bonus.
• Penalties (10%): Considers penalty rates and fees.
• Issuer Satisfaction (10%): Based on customer satisfaction.
• Recommended Credit (5%): Rates accessibility based on credit score requirements.

We answer some frequently asked questions about the Navy Federal cashRewards to help you make an informed decision.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.