When it comes to credit cards, active service members have a few more perks that they can choose from – sometimes those perks include waving annual fees. But what are the best credit cards for military veterans and their families? That’s what we’re going to explore today.
Credit cards can help improve consumer purchasing power when used responsibly. Experts recommend that cardholders pay off their statement balances each month. Sometimes, credit cards come in handy during tough financial situations – they can even help with restructuring past financial decisions.
We want to highlight credit card companies that are built for veterans, employ veterans, and understand what military and post military life are like. Having a financial institution that understands is extremely valuable, especially when it comes to managing financial debt.
The What and Why You Want a New Credit Card
When I was 18 years old, I opened my first credit card. It was used to buy a new big screen TV. I never considered the what, why, or impact taking on debt for a TV would have on my financial life. This sounds ridiculous, because it was, and I’m hoping we can approach this military credit cards conversation with a bit more wisdom under all of our belts.
Why do you need a credit card? What do you want to accomplish with it?
Common, logical reasons for wanting a credit card:
- In case of emergencies
- Security benefits that come from credit cards
- Convenience
- Budgeting
- Rewards – miles, cash back, points
- Waived fees (foreign transaction fees, balance transfers, etc)
- Additional perks (common for travelers)
Notice that we left off “impulse purchases” from that list.
Regarding the “what” of wanting a veteran friendly credit card, we’re looking for:
- Institutions that understand, respect, and specialize in military finance
- Straightforward cards: From fees to rewards, we don’t want you to be jumping through hoops to reap the benefits
- Multi-tool credit cards: We want to help veterans find credit cards that can be used in any situation, even if that means they’re not maximizing rewards at all times
Our Top Choice for Most Veterans with Good to Excellent Credit
Most consumers, including veterans, need a credit card that they can use for everyday shopping, occasional travel, online shopping, and basic cash back rewards.
Our pick is Navy Federal Credit Union’s cashRewards Plus for veterans with very good to excellent credit. This credit card comes with zero annual fees, no balance transfer fees, no foreign transaction fees, and no cash advance fees. Additionally, cardholders earn unlimited 2% cash back on all purchases.
These perks also include Navy Federal’s additional benefits, like:
- 24/7 US based member services
- Credit score reporting
- Fraud notifications
- Their zero liability policy for reported unauthorized transactions
- Lower than bank industry average APRs
Top Credit Card Pick for Veteran Travelers
When it comes to travel credit cards, we like the perks that come from Visa Signature® cards. That’s because Visa Signature cards typically come with more premium rewards, added security, and travel related benefits than a traditional Visa card. That leaves us with the USAA Eagle Navigator® Visa Signature® Credit Card and the Visa Signature® Flagship Travel Rewards Credit Card from Navy Federal Credit Union.
When we compare the two cards, we think that Navy Federal comes out on top.
The same pattern holds across most of their product lines — see our full USAA vs. Navy Federal comparison for checking, savings, auto loans, and mortgages.
The points, the conversion of the points, and many of the perks are similar. However, Navy Federal’s annual fee is nearly half of USAA’s annual fee for this card. USAA will let you earn an annual bonus, but you must first jump through the hoops of booking a hotel or rental car from their travel portal. Other premium travel cards from non-military focused companies won’t make you do that for their annual bonuses (see Capital One’s Venture X card).
What we like about the Visa Signature® Flagship Travel Rewards Credit Card:
- Competitive APR, especially in the travel rewards category
- Navy Federal’s standard credit card benefits
- 3x points on travel (car rentals, airfare, hotels, cruises)
- 2x points on everyday purchases
- Low annual fee: $49
If you travel 2-4x per year, this card will pay for itself and offer extra rewards that can be redeemed for cash back, gift cards, or future travel.
Our Top Pick for Veterans That Want to Restructure Debt with Balance Transfer Cards
There are quite a few great balance transfer credit cards available on the marketplace – Discover, Chase, and Citi all offer very strong introductory offers. With that said, Navy Federal Credit Union stands out again for their attractive introductory rate, terms, and low variable APRs.
The Platinum Credit Card is a very strong choice for veterans that want to restructure previous debt.
They’re currently offering 0% intro APR for 12 months from opening your account on balances transferred within 60 days. Once the introductory offer ends, a variable APR kicks in that is, what we believe, significantly less than the competition. Plus, unlike Navy Federal’s competition, their standard balance transfer fee is currently 0%.
Want updates when benefit rates change?
Join thousands of service members who get our free weekly briefing.
Wrapping Up
The credit card marketplace is filled with great options – this list barely scratches the surface. However, if you’re a veteran or military family member looking for a bank that understands you, these options are fantastic for achieving your what and why.
