USAA Auto Loan Interest Rate Reconsideration?

Anonymous · ‎02-13-2017

We were approved today for an auto loan through USAA, but at a horrible interest rate.

Has anyone else had USAA approved and then get them to reconsider the interest rate?

Thanks!

Appleman · ‎02-14-2017

You may want to consider PenFed and see what they can do for you. I have not tried to get USAA to find a lower rate for me, but does not hurt to call (unless they want another HP)

Anonymous · ‎02-14-2017

@Appleman wrote:
You may want to consider PenFed and see what they can do for you. I have not tried to get USAA to find a lower rate for me, but does not hurt to call (unless they want another HP)

Thank you! I actually did apply for a penfed account yesterday. I was approved for savings, checking and overdraft protection line of credit. I did a joint application with my husband for auto and they came back with 7%. Not totally ideal, but way better than USAA!! USAA had offered us 17.8 - which is higher than capital one had offered on their auto navigator as the highest rate! I'm kind of irritated with USAA. We have been customers for almost 20 years and never had any issues with payments or with paying our insurance.

A couple of years before my husband retired his pay had gotten messed up and we had 2 auto loans charged off as well as a couple small credit cards. We sold the vehicles and bought cheaper vehicles that we have been paying on for almost 2 years on auto pay with our local credit union. Our credit scores aren't horrible, but they aren't great either so I get that we are going to be higher than other people, but almost 18% from USAA was a little bit insulting lol. None of the loans we had before that deployment have had late pays or anything. It stinks to be judged solely based on a small portion of time that was completely out of our control :/

Sorry to ramble lol. I think we will go with penfed. I just need to rethink the purchase. I was hoping to be around 4% interest (I work at a bank where I can get 4%, but they only finance 90%).

Anonymous · ‎02-15-2017

@Anonymous wrote:
@Appleman wrote:
You may want to consider PenFed and see what they can do for you. I have not tried to get USAA to find a lower rate for me, but does not hurt to call (unless they want another HP)
Thank you! I actually did apply for a penfed account yesterday. I was approved for savings, checking and overdraft protection line of credit. I did a joint application with my husband for auto and they came back with 7%. Not totally ideal, but way better than USAA!! USAA had offered us 17.8 - which is higher than capital one had offered on their auto navigator as the highest rate! I'm kind of irritated with USAA. We have been customers for almost 20 years and never had any issues with payments or with paying our insurance.

My one experience with USAA was pretty atrocious--I bought a car in 2015 and I applied for car loans from Capital One and USAA. Capital One gave me 15%, USAA gave me 19%. I went with Capital One. Refinanced last fall with DCU and am at 3.99% now.

On a side note, I'm pretty much over USAA now. Been a member for 11 years, but they refuse to increase the CL on the measly $2k card I've had for 10 years, have denied every other credit card application I've submitted during those 11 years, gave me an atrocious car loan rate, and a terrible car insurance quote last summer (over $100 higher than Geico, Progressive, Allstate, and State Farm--I ended up going with Geico, which was almost $130/month cheaper than USAA's quote!).

Anonymous · ‎02-15-2017

We moved to the North Midwest after my husband retired. The insurance rate USAA gave us was awful, but I just assumed it was because the area is very rural and there are some crazy large animals here that like to play car-dodge! We recently got a quote from a local insurance company for our homeowners insurance. He asked us if we have auto insurance as well and I tol him yep, we've been with USAA since 2000 when we got married and my husband since 1996 when he joined the military so we were pretty set on staying with them. Just for the heck of it I let him quote Progressive for our vehicles and its about $500 every 6 months lower than USAA!! After 20 years and only one claim they were still way higher. March 1 we are switching to Progressive.

We do have 2 credit cards with USAA that we plan to keep, but they are both $1000 limit each. I am not excited to hear they are stingy with increases. We've just now hit the 6 month mark and I was hoping for an increase soon.

Back to the original topic though (lol) I woke up today and checked my Penfed account only to see that the auto loan was showing as declined. I frantically dialed their number because I already have my heart set on shopping this weekend. Apparently when I asked someone last night to check a vin number for me, they wouldn't approve it with that particular vehicle. Rather than ask me if he could put in another VIN number, he just left it and it showed up declined. Give me a heart attack why don't you Penfed!

I gave them another VIN number this morning and it came back conditionally approved on that vehicle for 6%, not 7% as they originally had quoted me! I know people who get much much lower than that, but 6% with our scores makes me super happy!! I am already very impressed with Penfed. Lets hope the actual purchase goes off without a hitch!

Appleman · ‎02-17-2017

Wow, glad that PenFed did not approve than deny you. Honestly, they have been very easy to work with when things get mixxed up (like your auto loan).

I have USAA, PenFed and NFCU and all serve a need within my finances. USAA has not been competitive for Auto loans for around 5 years (for me).

Credit card wise they have been generous with me and they are awsome with banking.

As a final note there was a recent study showing who will raise your rates after an accident that is not you fault and Progressive unfortunately was the worst of the bunch. The good newes is that you can always head back to USAA if you need to,

6% beats 7%!

Anonymous · ‎02-17-2017

Thanks for the heads up on progressive! I'm hoping we have a good experience with them but we will definitely head right back to usaa if they aren't all it's cracked up to be!

We do have credit cards through Usaa and I'm hoping they will continue to grow!