Navy Federal Visa Signature Flagship Rewards Card Review

The Navy Federal Visa Signature Flagship Rewards Card is a great choice for military families who travel frequently. The rewards rate of 3 points per $1 spent on travel expenses is impressive for a card with such a reasonable annual fee. Also, you’ll have flexibility in how you use your points, whether it be for more travel, cash, or other options.

Just keep in mind you have to be a Navy Federal member to get the card, and Navy Federal limits its membership to those affiliated with the military or Department of Defense.

Pros Explained

• Big rewards on travel purchases: Earning 3 points per $1 of travel purchases is very competitive, especially relative to the annual fee. Even the baseline rewards rate of 2 points per $1 is as good or better than similar travel cards offered to both military and non-military.
• Minimal fees: Not only is the annual fee lower than almost every other rewards cards with triple travel points, but this card doesn’t charge anything for balance transfers or foreign transactions and has a modest late fee. 
• Low ongoing APR: If you have to carry a balance from month to month, this credit card is a keeper even after the introductory interest rate period expires. The most creditworthy customers may get an ongoing APR as low as 9.99%, which is more than six percent below the industry average, and even the highest rate is still below average at 18%. 
• Fee reimbursement for expedited airport clearance programs: When you use your card to pay the application fee on either the Global Entry or TSA Precheck programs, you’ll be reimbursed for the fee (up to $100, once every four years). Some cards with similar or higher annual fees don’t have this perk.

Cons Explained

• Must have ties to the military or Defense Department: You won’t be able to get this card without being a member of the Navy Federal Credit Union, and membership requires you or someone in your family or household to have served in the U.S. Armed Forces, National Guard, or Department of Defense.
• No bonus for new cardholders: Navy Federal previously offered a 50,000-point bonus to new cardholders who met a minimum spending requirement.

Earning Rewards and Points

With the Navy Federal Visa Signature Flagship Rewards Card, you’ll earn 3 points for every $1 you spend on travel purchases and 2 points for every $1 on everything else. There’s no limit to the amount of rewards you can earn and they don’t expire as long as your account is open.

These rewards rates are quite competitive and put this card squarely in the mix with flexible travel cards offered by some of the biggest U.S. issuers, including Chase and Capital One.

Redeeming Rewards

You can redeem your points by logging into your online account or by calling the toll-free redemption center number. There are a number of ways to use them, including for cash back or to book airfare and hotel stays. You can:

• Purchase tickets for major airline carriers. For example, since points are worth a penny each, 50,000 points would equal $500 in airfare purchases. (Redemptions start at 100 points.) 
• Book stays at more than 325,000 hotels (must be booked through the card’s rewards service center.)
• Redeem between 5,000 and 150,000 points for a cash deposit of $50 to $1,500, made directly into your Navy Federal savings account (minimum 1,000 points needed to redeem.)
• Get a statement credit for up to three transactions that have posted to your account in the past 90 days using the Pay with Points feature. (Transactions must total at least $50.)
• Redeem 4,900 points to get a statement credit for the $49 annual fee.

Other redemption options include:

• Merchandise
• Gift cards
• Car rentals
• Cruises
• Vacation packages
• Event tickets
• Tours and attractions

How to Get the Most Out of This Card

Maximize your rewards by using the Navy Federal Visa Signature Flagship Rewards Card not just for travel, but for all your purchases. Most credit cards only pay 1 point per $1 for any spending beyond the bonus categories; this one pays double that. 

The best way to redeem your rewards is either for cash or to book an airline ticket, with each point being worth one cent. Other options might be higher or lower, so you’ll want to pull out a calculator and run the numbers if any of the other choices pique your interest. But, in general, aim for 1 cent per point or better.

To earn enough cash value from your rewards to offset the card’s $49 annual fee, you need to charge $2,450 to your card each year (or spend $1,634 on travel expenses). Considering that the average American family spends $4,643 per year on groceries alone, that should be a pretty easy feat for many people. 

Keep in mind, too, that there’s no foreign transaction fee on international purchases, making this card a good fit for purchases you make when deployed overseas or traveling internationally. And make sure to apply for Global Entry or TSA Precheck since Navy Federal will reimburse your application fee. It’s always a plus to get through airport checkpoints more quickly and smoothly. 

Excellent Perks

Travel credit cards tend to have a bunch of perks, but there are some The Balance editors have determined have exceptional value. These are the ones on this card that make the cut: 

• Global Entry/TSA Precheck application fee reimbursement: Choose one program to enroll in and you’ll receive one statement credit every four years after the application fee posts to your account. You’ll receive a $100 credit for Global Entry or a $85 credit for TSA Precheck six to eight weeks after you make the purchase.
• Insurance coverage for lost luggage: If your checked or carry-on luggage is lost or stolen while traveling on a trip paid for with your card, you’re covered for up to $3,000. 
• Travel accident insurance: You and your dependents are covered for bodily injury if there’s an accident while you’re traveling during a trip paid for with the card. The benefit is as much as $250,000.
• Cellphone coverage. Pay your cellphone bill with your credit card and you can ditch insurance coverage from your cellphone service provider. If your phone is damaged or stolen, you’re covered for up to $250 each occurrence and $500 per year, with a $50 deductible.

Other Features

• Rental car collision insurance (secondary to your own policy)
• Insurance for stolen or damaged purchases
• Extended warranties
• Travel and emergency hotline
• Roadside assistance hotline

Customer Experience

Navy Federal Credit Union got the highest score of any credit card issuer in J.D. Power’s 2020 U.S. Credit Card Satisfaction Study. Due to the unique nature of the company, it was not included in the rankings. Had it been, it would have been the number one ranked regional issuer.

The Navy Federal mobile app allows you to manage all the accounts you have with the credit union or apply to be a member and get an account. What’s more, cardholders get 24/7 access to U.S.-based customer service representatives online, over the phone, or at a branch. This feature is beneficial for service members who are deployed overseas.

You’ll also get complimentary access to your FICO score, the score most used by lenders.

Security Features

In addition to industry-standard security features like fraud monitoring, you can freeze and unfreeze your card instantly with the mobile app to protect against unauthorized use if you’ve misplaced your card.

Fees

Navy Federal generally stands out for its very reasonable fees, and this card is no exception. You will pay a $49 annual fee, but you’ll have the unusual advantage of not being charged a balance transfer fee. There is also no foreign transaction fee on the card, and it has a relatively low late fee and penalty rate. ATM cash advances at a Navy Federal ATM do not carry a fee, but even cash advances from out-of-network ATMs are only $0.50 to $1.