AARP credit card review: Both card versions offer decent cash-back earning and no annual fee, but few benefits

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Review: Is the AARP credit card the best card for you?

AARP (formerly American Association of Retired Persons) is a nonprofit organization that advocates for Americans who are aged 50 or older. You don't need to be over 50 to be a member — anyone of any age can join by enrolling on the AARP website and paying the membership fee (starting at $16 per year).

Members receive discounts on a wide variety of services from hotel stays to medical care, and get access to AARP resources that can help in almost any area of their lives.

Previously, Chase issued the AARP credit card, but it's no longer available to new applicants. Now, AARP offers two different credit cards through Barclays, both of which come with no annual fee. You do not have to become an AARP member to apply, but you can use your rewards to pay for your membership fee if you prefer.

Read more: Best rewards credit cards

Both of the AARP credit cards are cash-back credit cards — one is geared to people who spend a lot of money on travel, and the other is ideal for expenses that are a little closer to home.

Here's what to know if you're considering either of the Barclays AARP credit cards.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

AARP Essential Rewards Mastercard

If you spend a lot of money on medical expenses and prescription drugs, the AARP® Essential Rewards Mastercard® could be up your alley. This card doesn't charge an annual fee , and you'll earn 3% back on gas stations and drugstore purchases (not including Walmart and Target), 2% back on medical expenses, and 1% back on everything else.

The card offers a $100 cash bonus when you spend $500 on purchases within 90 days of account opening. The rewards you can earn are unlimited, and they'll never expire as long as your account is open. You also get free access to your FICO credit score just for being a cardholder.

Earning 2% back on medical expenses is a good deal, but there are cards that effectively offer the same rate of return on all purchases. For example, the Citi® Double Cash Card earns 1% cash back when you buy, and 1% when you pay — here's our Citi Double Cash card review .

If you need to consolidate credit card debt or even some medical bills , you can also benefit from a 0% APR on balance transfers (made within the first 45 days of account opening) for the first 15 months, followed by a variable APR of 20.99%, 24.99% or 29.99% variable.

The AARP® Essential Rewards Mastercard® is a good choice for anyone who has a lot of medical bills or drugstore purchases, as well as those who have high-interest debt to consolidate. Just keep in mind that a 3% foreign transaction fee applies to international purchases you make with your card.

Read more: Best cash-back credit cards

AARP Travel Rewards Mastercard

You could also consider the AARP® Travel Rewards Mastercard®, which comes with no annual fee and different rewards categories geared to frequent travelers. This card offers 3% back on airfare, hotel stays, and rental cars, 2% back on restaurant purchases, and 1% back on everything else. You can also earn the same $100 cash bonus when you spend $500 on purchases within 90 days of account opening.

Read more: Best credit card bonuses

Since this is a travel credit card, you won't pay any foreign transaction fees . Your rewards are unlimited with this card option, and they will never expire as long as your account is open.

You'll also get access to the same offer for balance transfers made within the first 45 days of account opening, which is for 0% APR for 15 months, followed by a variable APR of 20.99%, 24.99% or 29.99% variable.

If you're looking for a no-annual-fee credit card that earns bonus rewards on travel, dining, and drugstores, consider the Chase Freedom Unlimited® instead.

It earns 5% back on travel booked through Chase Travel℠ , 3% back on dining and at drugstores, and 1.5% back on all other purchases — here's our Chase Freedom Unlimited card review for all the details.

The AARP® Travel Rewards Mastercard® is almost identical to the AARP® Essential Rewards Mastercard®, although the earning categories are different and the AARP® Travel Rewards Mastercard® doesn't add foreign transaction fees. Because you'll earn 3% back on airfare, hotel stays, and rental cars and 2% back on restaurant purchases with the AARP® Travel Rewards Mastercard®, it's a much better option for frequent travelers and foodies who dine out often.

Bottom line: The AARP credit cards from Barclays are worth considering if you want to earn cash back without paying an annual fee, but there are other more rewarding cash-back cards available that might be a better fit for your spending habits.

We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Comparison: AARP Essential Rewards vs AARP Travel Rewards card

Comparison: AARP credit cards vs other cash-back credit cards

How to use rewards from the AARP credit card

The best way to maximize your AARP credit card is to use it for all your expenses and bills, particularly in your card's bonus categories. From there, you'll want to pay your credit card in full each month to avoid any interest payments .

Read Insider's points and miles valuations to find out how much your airline miles, hotel points, and credit card rewards are worth.

How much can you earn? That depends on which card you apply for and your regular spending habits. However, it can help to understand what each bonus category includes. For example, Barclays says "medical expenses" do not include health insurance premiums. However, you will earn 2% back on other medical expenses based on the merchant category code, including:

• Dentists
• Orthodontists
• Osteopathic physicians
• Chiropractors
• Optometrists
• Ophthalmologists
• Opticians
• Optical goods and eyeglasses
• Chiropodists
• Podiatrists
• Hospitals
• Medical and dental laboratories
• Hearing aids
• Ambulance services
• Orthopedic goods
• Prosthetic devices
• Nursing and personal care facilities
• Medical services and health practitioners not elsewhere classified (NEC)
• Doctors not elsewhere classified (NEC)

Meanwhile, drugstore purchases do not include purchases made at Target or Walmart, so that's important to keep in mind if you're filling prescriptions or buying personal care supplies at those retailers.

Read more: The best no-annual-fee credit cards of 2021

Both of the AARP credit cards offer the exact same redemption options, and they are fairly flexible. Once you sign up for either credit card, you have the option to redeem for:

• Transfers to a bank account starting at $25
• Statement credits starting at $25
• Gift cards and merchandise starting at $25
• AARP membership starting at $16

Your rewards won't expire as long as your card account is open and in good standing.

AARP credit card benefits and features

While the AARP credit cards are light on benefits, there are a few special features with both to be aware of.

0% APR on balance transfers

Both AARP credit cards give you a 0% introductory APR on balance transfers made within the first 45 days of account opening for 15 months. After the introductory offer is over, you'll be charged a variable rate of 20.99%, 24.99% or 29.99% variable.

Read more: Best balance transfer credit cards

This offer can be helpful if you have other debts you want to consolidate and pay down. Just keep in mind that the 0% APR only applies to balance transfers and not for purchases. Also, a 3% balance transfer fee (minimum $5) applies.

Charitable contributions

From March 22, 2021, until March 31, 2022, Barclays will automatically donate $10 for every newly approved AARP-branded credit card that is opened and used within 90 days. They'll also donate 1% of all "eligible electronic and telecommunications purchases made with the card" to the AARP Foundation.

AARP credit card fees and costs

The AARP credit cards are great for earning rewards but not that great if you plan to carry a balance.

Both the AARP® Essential Rewards Mastercard® and the AARP® Travel Rewards Mastercard® charge a high variable APR for purchases, so you'll want to steer clear if you need to carry debt for any length of time. If you plan to carry a balance, you should probably look into one of the best 0% APR credit cards that give you 0% APR on purchases for a limited time.

Both AARP credit card options are free of annual fees, and they both offer the same 0% introductory offer on balance transfers. You'll also pay the same variable APRs regardless of which card option you choose from — 20.99%, 24.99% or 29.99% variable.

Other fees both cards can charge include:

• 3% balance transfer fee (minimum $5)
• 5% cash advance fee (minimum $10)
• Late fee up to $39
• Returned payment fee up to $39

Finally, remember that the AARP® Essential Rewards Mastercard® charges a 3% foreign transaction fee. The AARP® Travel Rewards Mastercard® does not.

Holly Johnson is a credit card expert, award-winning writer, and mother of two who is obsessed with frugality, budgeting, and travel.