The Navy Federal Credit Union (NFCU) Flagship Rewards credit card is a simple card for everyday use that carries a small annual fee. It covers most general spending, although other options could be better.
FEATURES AT A GLANCE
- $49 annual fee
- No foreign transaction fees
- 3x points on travel
- 2x points on everything else
- $100 credit towards Global Entry or TSA PreCheck (once every 4 years)
SIGN UP BONUS
As of May 2023, you can earn 40,000 bonus points ($400) for spending $4,000 within 90 days of opening the account, plus free Amazon Prime for one year ($140 value). Note: it’s possible to get a $140 Amazon gift card instead of the free one year of Prime.
The sign up bonus varies for this card, so if you don’t like a deal, check back in a couple of months to see if it’s changed. New cardmember bonuses are typically worth $400 to $500, but can be much less. The current offer is one of the better ones though, since it’s worth $540. Signing up for the Flagship card is a minimum 14% RoS (Return on Spend) when taking into account cash back earnings and the annual fee.
OTHER BENEFITS OF THE CARD
- Visa Signature benefits including Travel Accident Insurance and Zero Liability Policy
- No balance transfer fees
- Travel assistance/referrals through calling AXA Assistance
- Cell phone insurance (reportedly has a $50 deductible and $250 maximum per claim, with a $500 annual benefit limit)
Click here for the full list.
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
The main restriction is getting NFCU Credit Union Membership to qualify for the card. This is limited to military members and their families, and certain government workers. There is no hard pull to join the union (such as opening a savings account). Applying for a credit card should pull TransUnion.
People have reported that NFCU limits customers to a maximum of 3 cards and/or $80,000 cumulative credit limit.
MAXIMIZING REWARDS WITH THE CARD
Points are worth a standard $0.01 each (1 cpp). There aren’t any special strategies to maximize earnings with NFCU. This simplicity may appeal to some people; you simply use the credit card and accumulate cash back rewards.
Compared to a no-fee 2% card, the Flagship’s extra 1% on travel is only worthwhile when spending $5,000+ on travel each year. If you spend less than $5,000 annually on travel, it doesn’t make sense to pay the Flagship’s $49 annual fee. It might be possible to get the annual fee waived if you call the bank, but YMMV. If you’re a high spender on travel though, you’re likely best off with a different credit card.
The “travel” category is broad and covers everything except gas. NFCU’s disclosures say “Travel is typically categorized under merchant category codes such as airline, hotel, car rental, bus lines, taxis, cruise lines, time shares, parking and transit.“ Interestingly, they also cover “travel-related entertainment” including museums and public golf courses. This might make the Flagship worthwhile for some people.
ALTERNATIVES TO THE FLAGSHIP REWARDS CARD
Any card earning 2% cash back on everything is a good alternative. For more ideas, try:
- Bank of America Cash Rewards, Premium Rewards, or Travel Rewards (BoA Platinum member or Platinum Honors)
- Chase Freedom Unlimited (paired with Chase Sapphire Reserve)
- Citi Double Cash (paired with Citi Rewards+)
Most of the general 2% cards also don’t have annual fees. It’s easy enough to avoid the Flagship card’s annual fee by opening a 2% card plus any other card which earns 3% cash back on travel categories. For example, Wells Fargo Active Cash plus Wells Fargo Autograph.
The best no-fee alternative is to combine PenFed Power Cash Rewards with PenFed Pathfinder Rewards. You’ll earn up to 4% cash back on travel, 2% on everything else, plus up to $300 in credits/benefits, all without annual fees.
Some premium cards like the U.S. Bank Altitude Reserve could be a no-fee card depending on spending habits. Another good travel alternative is the Capital One Venture X Visa Infinite. It earns up to 5-10x points on travel and 2x points on everything else. Points can be worth more than $0.01 each too. If you spend at least $300-400 per year on travel, the Venture X’s effective annual fee is $-5. Plus it includes Global Entry reimbursement, airport lounge access, and other perks. It’s arguably the best “everyday” card for travelers.
CONCLUSION
If you’re able to join NFCU and get approved for their card, this is a fair deal for people who don’t want to juggle multiple cards. The large sign-up bonus is appealing and earn rates are decent. The problem is the annual fee, though it’s fairly small and the $100 Global Entry credit helps offset it.
It’s not the best travel card, since Visa Signature is light on perks, and the Flagship doesn’t include splashy benefits like Priority Pass. Overall, the Flagship is just an okay card. It’s suboptimal for earning points and people can get a higher RoS elsewhere in the long-term.
NFCU isn’t the worst option, especially short-term. It has some niche applications and the non-cash-back perks are decent. Unfortunately it’s now outclassed by several other options.
We rate the Flagship Rewards card 2 out of 5 stars. ⭐⭐
Note: This review was last updated in May 2023. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to take advantage of our personalized consulting services!