If you’re looking for a credit card with cash back rewards but don’t want to pay an annual fee, you might want to see if you’re eligible for the Navy Federal Credit Union cashRewards card.
The Federal Navy, which primarily serves military personnel and their families, offers this cash back credit card to members of the credit union.
This card offers up to 2% cash back on daily purchases for select members. She carries a $ 150 welcome bonus. And it has the approval of money expert Clark Howard. Thanks to the card’s announced low APR interest rate, Clark believes it might be reasonable to carry a balance on this card if necessary.
In this review, we will explore the benefits of this card, explain how to apply for it, and compare it to other popular cash back cards on the market.
Table of Contents
The Clark team has spent time evaluating the credit card market in various categories, including the best cash back credit cards. We have compared the Navy Federal Credit Union cashRewards card to the best cards in this segment of the market. And we’ve determined it’s a viable option, thanks to its constant cash-back rewards and customer-friendly rate approach.
When making a decision about whether this card is right for you, use this review in conjunction with the 7 Clark Howard Rules for Credit Card Use.
What is the Navy Federal Credit Union cashRewards card?
The Navy Federal Credit Union cashRewards card is a cash-back credit card for current and retired United States Armed Forces personnel, their families, and other select members.
It features unlimited 1.5% -2% cash back rewards on daily purchases (details on that below), a welcome bonus for new cardholders, no balance transfer fee, and an introductory period of 0% APR on new purchases. To qualify for this card, you must be a member of the Navy Federal Credit Union.
Navy Federal Cash Rewards Card – Specs and Benefits
Let’s take a look at the fine print to examine some of the card’s benefits and drawbacks:
Cardholder benefits
- Unlimited 1.5% cash refund: The main benefit of this card is a 1.5% cash back bonus on all purchases. And there is no bounty limit on this, making it an attractive choice for daily spending.
- 2% refund promotion: If you are active military personnel, you may qualify for an increase in your daily cash back earnings. The card offers a 2% cash back to active staff during their first four years of membership. After that, the rewards go back to the 1.5% rate.
- $ 150 welcome bonus: If you spend at least $ 2,000 within the first 90 days of card membership, you’ll receive a $ 150 rebate bonus reward. That’s a little less generous than other offers on the market, but it’s also relatively easy to get.
- 0% APR introductory period: During the first six months of card membership, you will pay 0% APR on new purchases. There is also a 12 month period for 0% APR on balance transfers.
- No balance transfer fee: In addition to the 0% APR 12-month period, cardholders can also make those transfers at no charge. That creates a one-year window for a possible free transfer of existing credit card debt. It’s worth noting that the lack of a balance transfer fee extends beyond the APR promotional offer.
- Instant rewards without expiration: You can access and redeem your cash back rewards as soon as you earn them, with no minimum amount of expense. You can access rewards and check your balance in real time through the Navy Federal website or mobile app. And as long as your account is active, your cash back rewards will never expire.
- Car rental protection: If you rent a car with your cashRewards card, you will automatically receive collision damage waiver coverage for rentals of 15 days or less. This acts as supplemental insurance for your current coverage and could help defray costs if your rental is stolen, damaged, or you need a trailer.
- Cell phone protection: If you pay your cell phone bill with your cashRewards card, you may qualify for cell phone protection. This could save you a lot of money if your phone is lost, broken, or stolen.
Cardholder fees
Here’s a quick look at some of the fees you can find with the Navy Federal card:
- Annual quota: None
- Balance transfer fee: None
- Cash advance fee: None, as long as you complete the transaction at an approved Federal Navy ATM. Otherwise, it is $ 0.50 per cash advance transfer. But note that the interest rate for cash advances on this card is 2% APR higher than its rate for purchases.
- Foreign transaction fee: None
- Late payment charge: Up to $ 20
How to be eligible for the CashRewards Navy Federal Credit Union card
If you want to take advantage of this credit card, you must first join the Navy Federal Credit Union. Even if you are not an active member of the United States Army, you may still be eligible.
Here’s a quick look at who qualifies to be a member of the credit union:
Military personnel
- Active members of the U.S. Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard, and Space Force
- Veterans, retirees and beneficiaries of the aforementioned services.
- Members of the Delayed Entry Program (DEP) of the US Armed Forces.
Military relatives
The Federal Navy extends its membership offer to “direct” family members of military personnel, which it defines as:
- Parents
- Grandparents
- Husbands
- Brothers
- Children (adopted and stepchildren included)
- Grandchildren
- Household members
Defense Personnel Department
- Candidates and reservists of Department of Defense officers (DoD)
- DoD civilian employees
- United States government employees assigned to the Department of Defense
- Department of Defense Contractors
- Retirees and pensioners
To apply for membership, you will need to provide a Social Security number, a government-issued ID, and a current address. If you qualify, you will be asked to make an initial deposit from an existing bank account to your credit union account. Please note that Navy Federal requires $ 1,500 deposit funds to avoid a $ 10 monthly charge to checking account.
Navy Federal cashRewards vs. Citi Double Cash: which is better?
When it comes to cash back credit cards, the Clark team likes to compare them to the Citi® Double Cash card.
This is because money expert Clark Howard has found Double Cash worthy of his wallet thanks to his simple cash back offer on all purchases: as much as 2% (1% when you buy, 1% when you pay your bill).
Clark also recently backed the Navy Federal cashRewards card because of the benefits it offers, as well as the possibility of a fixed low APR on purchases. (Note: APR rates fluctuate based on a number of factors, including a personal creditworthiness assessment. Your rate may vary.)
This is how the two cards are compared:
| Card Feature | Navy Federal CashRewards | Citi Double Cash |
|---|---|---|
| Annual quota | None | None |
| Cash back reward | 1.5% on all purchases (2% promotion for active military) | 2% on all purchases (1% when you buy, 1% when you pay) |
| Welcome bonus | $ 150 in expenses of $ 2,000 in 90 days | None |
| Balance Transfer Introductory Offer | 0% APR for 12 months | 0% APR for 18 months |
| Balance transfer fee | $ 0 | $ 5 or 3% of the amount, whichever is greater |
| Initial purchase period of 0% APR | 6 months | None |
| Advertised purchase APR range | 9.65% to 18.00% | 13.99% to 23.99% |
| Foreign transaction fee | None | 3% purchase |
Based on this information, it appears that the cashRewards card could serve you well. For members of the Federal Navy who do not qualify for the 2-year cash rebate promotion for four years, the decision may be a little tougher. Citi offers an additional 0.5% cash back on daily purchases compared to the standard 1.5% for cash rewards.
Clark does not recommend carrying rewards credit card balances at appalling standard APR rates, so he recommends choosing the Citi card only if you plan to pay the bill in full each month.
Final thoughts
Are you considering adding the Navy Federal Credit Union cashRewards card to your wallet? Let’s review some of the card’s main pros and cons before making your final decision:
Navy Federal Credit Union Cash Rewards: Pros and Cons
|
|
| Pros | Cons |
| 1.5% cash back; 2% for active military (for four years) | You must be a member of a credit union to apply for the card |
| $ 150 welcome bonus | Credit union membership is limited |
| No annual fees or balance transfer | No rewards program beyond the cash back structure |
Bottom line: If you qualify to be a member of the Federal Navy, this could be a card worth adding to your wallet. Money expert Clark Howard received the 2% cash back bonus offer, and believes the card shows promise as a daily spender.
Do you have experience with the Navy Federal Credit Union cashRewards card? Let us know how you like it in the comments below!
