The AAA credit card portfolio requires a little history lesson.
After Bread Financial and AAA officially partnered in 2022, the two companies launched two co-branded credit cards: the AAA Travel Advantage Visa Signature Credit Card and the AAA Daily Advantage Visa Signature Credit Card. Both cards are issued by Comenity Bank, a subsidiary of Bread Financial, and although the benefits are limited, the bonus interest rates are quite impressive.
The third co-branded card is the AAA Cash Back Credit Card, issued by Bank of America.
The Travel Advantage and Daily Advantage credit cards have similar features but differ from the Cashback credit card in terms of eligibility requirements, rewards, and sign-up bonuses.
Here’s what you need to know about the three AAA credit cards to help you decide which one is best for your lifestyle.
1. Have 3 AAA credit cards
Before applying for a AAA credit card, be sure to fill out the application for the card you really want. The three AAA credit cards have different rewards structures:
- AAA Daily Advantage Credit Card.
- AAA Travel Advantage Credit Card.
- AAA Cash Back Credit Card.
AAA Everyday Benefits Credit Card
The AAA Daily Advantage is marketed as an everyday spending card. For many cardholders, the bonus categories represent common spending categories. The Daily Advantage card earns:
- Earn 5% cash back at grocery stores.
- Earn 3% cash back on gas, electric vehicle charging, wholesale clubs, streaming services, drug stores and AAA purchases.
- Earn 1% cash back on all other purchases.
The combined cash back limit for rewards at grocery stores, wholesale stores, and gas stations is $500 per year. Once you reach the limit, purchases in these categories earn 1% back for the remainder of the year. The $500 rewards limit may seem high, but some households easily exceed it. If you spend $10,000 per year at grocery stores alone, you will reach the $500 cash back limit.
AAA Travel Advantage Credit Card
As the name suggests, the AAA Travel Advantage is a travel-centric credit card, and its bonus categories bear that out. The Travel Advantage card earns:
- Get 5% cash back on gas and electric vehicle charging.
- Earn 3% cash back on travel, dining, grocery stores and AAA purchases.
- Earn 1% cash back on all other purchases.
Rewards earned on gas and EV charging are capped at $350 per year. Once the cap is reached, the rewards rate drops to 1%. With a 5% rewards rate, a cardholder would need to spend $7,000 per year on gas and EV charging (or about $583.30 per month) to reach the $350 rewards cap.
AAA Cash Back Credit Card
The AAA Cashback Card’s rewards rate isn’t as high as the other two cards; however, the rewards are unlimited. This card earns:
- Earn 3% cash back at grocery stores, gas stations, and restaurants.
- Earn 2% cash back on AAA memberships, travel and insurance.
- The rest are 1%.
Bread Financial does not allow consumers to have both a Daily Advantage card and a Travel Advantage card.
2. You may need AAA membership to get one of these cards
You need to be a AAA member to get the AAA Cashback Credit Card. Prices depend on where you live, but generally memberships range from $38 to $164 per person per year.
However, you don’t need to be a AAA member to apply for a Daily Advantage or Travel Advantage credit card.
3. Reward redemption options vary by card
If you have a AAA Cash Back Visa, your rewards can be used for:
- AAA Gift Card.
- commodity.
- Government credit (minimum exchange amount is US$25).
- Direct Deposit (minimum redemption amount is $25).
- Gift vouchers.
Redemption options for the Daily Advantage and Travel Advantage cards include everything listed above plus Apple products and AAA merchandise, services and travel. If cardholders choose cash back or statement credit, they must have a minimum of $5 to use.
For all three AAA cards, the rewards expire after five years.
4. Sign-up bonuses also vary by credit card
Currently, the Travel Advantage and Daily Advantage credit cards have the same sign-up bonus: New cardholders can get a $100 statement credit after spending $1,000 on a AAA Visa Signature card in the first 90 days of account opening.
As of this writing, the AAA Cashback card’s welcome offer may be more valuable, depending on your spending. New AAA Cashback cardholders will receive 4% off AAA memberships, travel, and insurance for the first six months, up to $6,000, instead of the standard 2%. If you reach the $6,000 spending limit, you’ll get $240 in cash back.
5. Extremely low fees
The combination of a $0 annual fee and 5% flat bonus categories is particularly compelling for the Daily Advantage and Travel Advantage credit cards. Other cards with 5% interest rates often require an annual fee or require you to actively seek out and sign up for bonus categories that rotate quarterly.
