Introduction:
In a world where cards that earn an unlimited 2% cash back have become commonplace, the Navy Federal Cashrewards Credit Card*’s potential to make a total of 1.75% cash back doesn’t measure up. While the card may be a solid option for those with average credit, we’re not blown away by the rewards potential.
The rental collision damage waiver with the cash rewards is a decent benefit not usually found outside higher-end rewards cards. The card’s notably lower-than-average APR range may seem like a lifeline to some, significantly since this card, like all Navy Federal cards, doesn’t charge a balance transfer fee.
Quick Facts:
- No annual fee
- $250 bonus cash back after spending $3,000 within 90 days of account opening
- Earns up to 1.75% cash back on all purchases (direct deposit enrollment required; 1.5% cash before made otherwise)
- Auto rental collision damage waiver
- Get a 14.65% – 18.00% variable APR for purchases and balance transfers applies. Balance transfer fee not applicable
- No foreign purchase transaction fees or balance transfer fees
Navy Federal Cashrewards Credit Card Rewards-
Earning Rewards:
Rewards are earned on net eligible purchases with the cashRewards card, up to 1.75% (direct deposit enrollment required; 1.5% cash back earned otherwise). Rewards expire only when the account remains open, and there is no limit on the tips that may be made.
The card also offers a first-year welcome bonus: $250 bonus cash back after spending $3,000 within 90 days of account opening.
Redeeming Rewards:
There is no minimum redemption amount for cash back with the cashRewards card. Rewards can be redeemed as cash back and must be used upon account closure, or they will be forfeited.
Rewards Potential:
To determine the rewards potential of the Navy Federal Cashrewards Credit Card*, we consider what an average household might spend on a credit card each year. Forbes Advisor uses data from various govt. Agencies to determine baseline income and spending averages across multiple categories. The 70th percentile of wage-earning households brings in $116,000 annually, and we base spending on that number.
Forbes Advisor estimates a household has 36,177 dollars in expenses that can be charged to a credit card. At 1.75% cash back, the cashRewards Card would earn $633.10 in cash back per year.
Other Navy Federal Cashrewards Credit Card Benefits:
- Auto rental collision damage waiver: Paid with the card & turned down the collision damage waiver at the rental desk to receive secondary coverage.
- No foreign transaction fees: Use the card abroad without paying fees on every transaction.
- $0 fraud liability: Cardholders aren’t responsible for unauthorized transactions.
Fine Print-
Interest Rates:
- Regular APR: 14.65% – 18.00% variable
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees:
- Annual fee: None
- Balance transfer fee: N/A
- Foreign purchase transaction fee: None
How the Navy Federal Cashrewards Credit Card Stacks Up
Navy Federal Cashrewards Credit Card* vs. Citi® Double Cash Card-
The Citi Double Cash Card earned 2% cash back on all purchases, 1% when purchases are made, & another 1% when paid off. Don’t let that slight difference fool you—the 0.25% advantage over the cash rewards can significantly add up over the year. However, the Navy Federal Cashrewards Credit Card* may be the better option for those with average credit.
The Citi Double Cash also comes with an intro APR offer: 0% intro APR on balance transfers for Eighteen months. The standard variable APR will be 19.24%–29.24% based on creditworthiness. An intro balance transfer fee of $5 or 3% or greater applies to transfers completed within the first four months of account opening. After that, the prices will be 5% of each transfer (minimum $5). This contrasts sharply with the cashRewards card, which has no introductory APR. The Navy Federal Cashrewards Credit Card* has the edge in the extras: The auto rental collision damage waiver and lack of foreign transaction fees aren’t matched by the Double Cash.
Navy Federal Cashrewards Credit Card* vs. Navy Federal GO REWARDS® Credit Card*
If a Navy Federal credit card is appealing but prefers a different rewards structure, consider the Navy Federal GO REWARDS® Credit Card*. The card earns 3 points per $ at a restaurant, 2 points on gas, and one on everything else.
The Go Rewards card will likely earn more rewards for those who spend plentifully on gas and dining. It also offers an auto rental collision damage waiver. But it comes with a different welcome bonus: 10,000 bonus points (a $100 value) after spending $1,000 within 90 days of account opening.
Navy Federal Cashrewards Credit Card* vs. Capital One QuicksilverOne Cash Rewards Credit Card
The Capital One QuicksilverOne Cash Rewards Credit Card is a flat-rate cash-back card for those with average credit, earning 1.5% cash back on every purchase & 5 on hotels & rental cars booked through Capital 1 Travel. With an earn rate of 0.25% lower than the cashRewards card, the Capital One QuicksilverOne may not be a better option. But it doesn’t require credit union membership to apply. The QuicksilverOne also carries an annual fee of $39, whereas the cashRewards has none. And for those who take a balance, the QuicksilverOne also comes with a much higher APR than the cashRewards, a whopping 30.49% variable APR on purchases and balance transfers.
The lower earning rate, annual fee, and higher APR compared to the Cashrewards likely make the QuicksilverOne a less appealing choice for most.
Is the Navy Federal Cash Rewards Credit Card for You?
For those seeking a solid flat-rate rewards card but may need more credit to qualify for a card offering 2% cash back, the Navy Federal Cashrewards Credit Card* may be an appealing option, especially for those who can use the additional card benefits.
Methodology:
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our rating. Altogether, the factors came together to provide star ratings for each card.
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