Credit Cards

What Is The Best Credit Card For Navy Federal

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

The Navy Federal Credit Union Visa Signature® Flagship Rewards Credit Card is a flexible credit card that offers a rewards program that pays 2 points for $1 spent on every transaction, every day (after the first year, the annual charge is $49) and a $49 annual fee (after the introductory year).

There are no limits placed on how much money you may make. This credit card is a combination of a cash-back card, a travel rewards card, and a generic rewards card. Redeemable rewards for point balances include cash, gift cards, vacation, products, and more.

However, there is a significant catch: the general public cannot obtain this card. To be eligible, you must be either a current (active duty) service member, a veteran, a civilian employee of the Department of Defense, or the spouse or immediate family member of someone who satisfies these criteria. Therefore, you should probably seek a different rewards credit card if you haven’t joined the military and have no plans to do so in the near future.

For those who are eligible for the NFCU Visa Signature Flagship Rewards Credit Card, the rewards are truly exceptional. In addition to the attractive rewards program, this card offers a competitive initial balance transfer offer, a competitive continuing APR, and a host of other useful perks. Examining the features of this premium card in further detail.

Important Characteristics

Welcome Bonus

After creating an account, you are entitled for 30,000 bonus points after spending at least $3,000. That’s good for up to $300 in travel expenses like lodging and transportation.

Earning Benefits

When you use your Navy Federal Credit Union Visa Signature Flagship Rewards Credit Card for any purchase, you’ll earn 2 points. The number of points you may earn is unlimited, and they never expire.

Redeeming Prizes

NFCU members may use their points to buy gift cards, products, gift certificates, and cash back deposits into their accounts. Depending on the item, your points might be redeemed for as little as $0.001. The best value is typically found in redemptions for travel. One thousand points (up to a $10 value) is required for redemption.

Important Charges

The first year’s charge of $49 is refundable. However, neither a balance transfer nor a foreign transaction fee is charged. Also, cash advances are free of charge, with the exception of non-NFCU ATMs, which charge a fee of $0.50 per domestic advance and $1 each international advance. The fee for late or rejected payments might reach $20.

Visa Signature Advantages

The Visa Signature perks that come with this card are among the best in the business.

  • Extended warranties on devices with 12-month or shorter manufacturer’s warranties
  • Free loss and damage coverage for automobile rentals charged in full to the card.
  • Complimentary travel accident insurance (a bare-bones form of travel insurance)
  • Assistance in an emergency for tourists

Discounts for Visa Merchants

For example, NFCU Visa Signature Flagship Rewards cardholders may save money at a wide variety of stores, including the Metropolitan Museum of Art in New York City, the wax museum Madame Tussaud’s, travel agencies like Gray Line Tours, and fashion retailers like Calvin Klein and UGG.

Credit Required

High credit scores are required for this card. You can have difficulties getting approved if there are serious problems in your credit history.

Benefits

  1. Affordable Costs. The fees for the NFCU Visa Signature Flagship Rewards Credit Card are low. Cash advances often don’t incur any costs, and neither do balance transfers or overseas transactions. You may offset the $49 yearly cost with moderate to heavy spending, provided you don’t make any late payments and don’t get any cash advances from ATMs that aren’t affiliated with NFCU.
  2. Excellent Return on Investment. Infinite 2 points for every $1 spent on all purchases with this card. You don’t have to keep track of the changing rewards categories used by competing cash back cards like the Blue Cash Preferred from American Express (which also has a higher annual fee) or the tiered cash back schemes used by BankAmericard Cash Rewards.
  3. Fantastic New Member Bonus. When you establish an account and spend at least $3,000 during the first three months, you will receive 30,000 bonus points. That’s a 10% return on account spending in the first year, which can be redeemed for up to $300 in travel.
  4. Benefits with Visa Signature are nice. This card comes with a plethora of perks, including free rental vehicle insurance, 24/7 travel help, an extended warranty on high-value products with a manufacturer’s warranty, and substantial savings at Visa partner retailers. You may save a significant amount of money every year by taking advantage of these benefits.

Drawbacks

  1. Cost Each Year. The NFCU Visa Signature Flagship Rewards includes a $49 yearly charge after the first year. You might wind up losing money on this deal if you’re a low-spending type who doesn’t earn rewards fast enough to cover the cost of the automatic payment. In that scenario, try to find a credit card without an annual fee, like the NFCU cashRewards Credit Card, which gives you 1.5% cash back on all transactions, no matter how much you spend.
  2. You may only earn up to 2 points for every dollar spent. This card offers an excellent base earning rate of 2 points every $1 spent on all purchases. With that investment, you may expect a return of about 2%. The maximum possible profits are, however, capped at 2 points every $1 spent. No matter how much money or what you buy, you will not increase your rate of return. Chase Freedom, Discover it, or the BankAmericard Cash Rewards Credit Card are all good options if you want a credit card that offers bonus categories or rewards tiers that may increase your average earnings to more than 2%.
  3. Exclusive to Active Duty Personnel, Veterans, and their Families. This card is only available to active or retired military personnel, civilian Department of Defense employees, and immediate family members of such individuals. Since this eliminates the great majority of potential NFCU Visa Signature Flagship Rewards cardholders, it’s unfortunate for individuals who were interested in the card’s benefits but good news for the dozens of other cash back and travel credit cards that are open to the general public.

Bottom Line

You don’t have to be a present or former Navy sailor to join Navy Federal Credit Union, despite the name’s implication otherwise. You’re automatically accepted if you’ve served with distinction in the armed forces, worked for the Defense Department, or are a close relative of someone who can make that claim. For those who have given so much for their nation, this is the least NFCU can do.

However, despite its welcoming nature, NFCU is not precisely a public social club. A connection to the military or the Department of Defense is required. An option is the State Department Federal Credit Union (SDFCU), which was established initially for State Department workers and is significantly more lax in its membership requirements.

Due to a number of qualifying loopholes, anybody may become a member of SDFCU by making a one-time donation to one of the organizations on their authorized list. With a minimum contribution of only $15, joining SDFCU is within reach of even those on limited budgets.

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