@haulingthescoreup wrote:
The USAA AmEx (and BofA AmEx, and Citi AmEx, if they still have it, etc.) is processed through the American Express card processing network, but it still counts as a card from USAA.
If you want to have a card from a national bank, to avoid the nothing-but-CU's ding, this one won't work. You'd have to go through whichever big banks are still in business this week. USAA isn't a CU, but their cards are treated as such by the scoring formula.
That being said, if the USAA AmEx has turned up in your offers section, it's a great card to have. It's pretty hard to go wrong with two cards from them, and it does offer the AmEx consumer protections.
I don't think the potential "ding" of no prime banks is a big deal. It isn't going to be a significant score reduction. And if you build up substantial credit and CL's with CU's, then you are more apt to get better rates, terms and CL's with a prime bank later when you apply.
In my mind, you build up a tweaked FICO to get credit, loans and financial services at the best rates. After that, tweaked isn't necessary. Just maintaining good credit habits and thus clean reports and good scores will protect you from most AA and provide you the best insurance rates.
The 2 things that I think get too much attention is the "prime card/bank" issue and the inquiry issue. If you aren't looking for new credit, then spend your FICO capital to get the best deals. The end game or objective is the useable credit at good rates/terms, not a tweaked high FICO for bragging rights. Let's not forget the true use and benefit of FICO.....the number by itself is worthless. What it gets you in financial value is the point of the "game" IMO.
Many people post their "fears" of AMEX on the boards. I don't hear anybody talking about "fear" of USAA. Thus I am very happy to have my AMEX through USAA. I get all of the cardholder benefits (warranty extension, purchase protection, travel insurance, consierge, etc) but don't have to deal with the bipolar behavior of AMEX direct. USAA gave me $20k on my AMEX. That's good enough for me.
