As part of a limited online pilot program, USAA is offering a credit card with an unlimited 2.5% cash back on all purchases. The USAA Limitless Visa, in addition to offering a generous cash back rebate on purchases, does not charge any annual fee or foreign transaction fees.
Now, there are a number of caveats. First of all, you must be a USAA member to apply for the card. In addition, you must have a USAA Bank checking account with a qualifying direct deposit of at least $1,000 every month. If you do not have a qualifying direct deposit, you’ll earn 1.5% cash back on your purchases instead. And currently, USAA is only making the card available in the following states: AL, AZ, CO, GA, ID, IN, KS, LA, MI, NM, PA, SC, TN and WA. It will become available in additional states at a later date.
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This week, USAA announced it has eliminated foreign transaction fees on all its credit cards. The move comes as a result of its decision, announced last year, to transition all its Mastercard credit cards to Visa cards. At the time, USAA said it would only be removing the fees on its Visa credit cards, but it has since opted to eliminate the fees on its MasterCard and American Express credit cards as well.
The downside of the switch from Mastercard to Visa is some temporary inconvenience–existing Mastercard cardholders will receive new Visa cards with new credit card numbers and PINs, requiring them to update accounts with merchants and service providers who regularly bill their card. This switch will continue to take place throughout 2016.
Previously, USAA’s credit cards charged a 1% foreign transaction fee, which was only waived if you were a member of the military on active duty.
For more information on USAA credit cards or to apply, see this link.