Are you a veteran or service member seeking a new credit card?
There are a variety of credit cards available to active duty, military, and veteran individuals.
These cards often offer extensive benefits, including lower interest rates and no foreign transaction fees.
If you’ve been researching military credit cards, you’ve likely come across Navy Federal credit cards. Navy Federal is the world’s largest credit union and has quite a few credit card options.
Read on for a thorough review of a Navy Federal More Rewards Amex credit card so that you know what to expect.
Navy Federal More Rewards Amex Credit Card: The Basics
According to their website, Navy Federal is a credit union that serves “Department of Defense and Coast Guard active duty, veterans, civilian and contractor personnel and their families.” Much like Pioneer Military Loans, Navy Federal focuses on the military community.
This means that you are eligible for a Navy Federal credit card if you are currently serving or have served in the U.S. military. If you work for the military as a civilian or contractor, you and your family can request a Navy Federal account.
Navy Federal offers eligible users six credit cards, including an Amex, Mastercard, and Visa. For the purposes of this article, we will be reviewing the Navy Federal More Rewards American Express card.
The More Rewards Amex is free of annual fees. Navy Federal credit card users will also enjoy no fees associated with balance transfers, foreign transactions, or cash advances.
This card also offers users reward points incentives.
The Navy Federal More Rewards Amex card gives users 1 point for every dollar of purchases made. Users receive 3 points for every dollar spent at grocery stores and gas stations, respectively.
What’s more, users receive 2 points back for every dollar spent at restaurants.
These points can be redeemed later for statement credit, cash back, or gift cards. Points accrued never expire.
The most notable attribute of Navy Federal cards is their relatively low interest rates. The Navy Federal More Rewards Amex card has a variable APR beginning at 11.15%.
The maximum APR is 18%. This is significantly lower than other credit cards on the market. Additionally, if you are looking for cash from your credit card instead of utilizing a bad credit loan, this can make a huge difference in the interest you pay.
It’s possible to request an Amex credit card through Navy Federal’s website. However, keep in mind that you will have to provide evidence of your military association.
There are quite a few advantages to having a Navy Federal More Rewards American Express credit card. Read on to learn about these benefits as you mull over your decision.
1. Low APR Interest Rate
One of the most significant benefits of using a Navy Federal More Rewards Amex credit card is its low APR. Individuals with good credit are likely to enjoy interest rates with this card that won’t make carrying a balance prohibitive.
What’s more, even if your credit is fair, the maximum APR you will have to negotiate for this card is still low compared to other rates in the industry. Some credit cards have APRs as high as 28 or 30%.
Navy Federal’s low-interest rates make any of their cards ideal for users who may need to carry balances in the future.
2. No Balance Transfer Fees
A lot of people choose to consolidate existing credit card debt by using balance transfers. A balance transfer effectively moves balances from other credit cards to a single account.
Most industry credit cards charge a fee for balance transfers, often a minimum of 3 or 5 percent of the transferred amount. This cost can be steep, especially if you have a lot of debt to consolidate.
Navy Federal offers no-sweat balance transfers to its Amex card users with its lack of fees. This is ideal for credit card users who don’t wish to be penalized for attempting to consolidate debt.
Navy Federal’s More Rewards Amex card does not have any foreign transaction fees. This is ideal for users who anticipate traveling a lot.
Given the fact that Navy Federal caters to military personnel, who travel extensively, this is an asset.
Amex card users can also navigate their account online via the American Express website, 24 hours a day, 7 days a week.
4. Membership has its Privileges
Once you are a Navy Federal member, you will have access to other services, like banking and personal loans. And, much like their credit cards, the Navy Federal online loan program has very attractive interest rates and an easy application process.
There are several disadvantages to using a Navy Federal More Rewards Amex credit card, particularly when it comes to the bank’s limitations.
1. Cash Back is Limited
While Navy Federal offers a cash back incentive for this card, it is not very competitive given its category limitations.
Some Amex users, for example, may not find themselves spending a lot on groceries or gas annually, and may not be able to reap the full benefit of this card’s point system.
Users wanting more flexible and high-value rewards cards or ones that suit the categories of their predominant spending may want to look elsewhere.
2. Low-Interest Rates Require Solid Credit
All Navy Federal credit cards have appealing interest rates. However, the lowest interest rates–in this case, 11.15%–will apply to individuals with solid credit scores and history.
The Amex’s APR is, after all, “variable.” This means that your Amex APR will vary depending on credit habits, balance amounts, and your ability to pay your bill on time.
If you depend on carrying a balance on credit cards yet have poor credit, Navy Federal may not be ideal for you. In that case, you may want to look for a credit card for bad credit, like those we review at Bonsai Finance.
3. No Introductory Offers
Some banks offer first-time users a sign-up bonus of some kind, either in the form of statement credit or points. Others will also give users the luxury of 0% APR for the first 12-18 months of card use.
Navy Federal’s More Rewards Amex card does not currently offer first-time users any introductory offers.
Conclusion: Navy Federal Credit Card Review
Navy Federal Credit Union is a great financial resource for active duty and veteran military individuals. It gives users several flexible options when it comes to credit cards.
Most Navy Federal credit cards, including its More Rewards Amex, are free of fees, enabling users to easily make balance transfers and cash advances without fear of penalty. They also have incredibly low APR interest rates.
However, the More Rewards Amex requires a robust credit history. It may not be competitive as a cash back rewards card.
Are you on the fence about whether or not to apply for a Navy Federal credit card? We can help. Start a conversation with us now! Here are some other articles that you might find interesting: