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Registered: ‎06-05-2008
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Re: USAA BANK 6.99% for life


Kalamazoo2714 wrote:

Usaa has A NEW CARD WHICH IS AS LOW AS 6.99% FOR LIFE ON ALL PURCHASES, CASH ADVANCES AND BALANCE TRANSFERS. Rate IS BASED ON CREDIT SCORE AND RANGES FROM 6.99%-23.99% BASED ON CREDIT SCORE. BUT SAME RATE ON EVERYTHING. gO TO WWW. USAA.COM for details


There is more to the story.  If you are referring to the "Rate Advantage Mastercard", the rate is variable, based on prime plus x.  So, if the prime rate today is 3.25, and your card is 6.99, then your "x" is 2.74.  The rate's 10 year peak was 8.25 in 2006.  If rates went that high, your rate on the card would be 11.99.  Still not a bad rate, but a far cry from 6.99.

 

That rate peaked in the eighties at 21.5%.  If we ever got there again, your rate would be 24.49%.  Assuming you actually qualified for the 6.99 in the first place...  But of course, all other variable rate cards would follow the same trend.   This card is right for someone who wants to balance transfer a high balance, and then pay it off in a reasonable time, but it's not right for everyone.  If you continually carry a large balance, the safest bet is to choose a low fixed-rate card.  If you have a short term need for a balance, you're better off with a 0% introductory offer.

 

Most of us here use our cards frequently, but don't carry a balance.  So, we don't care about the rate as much as we care about cash back and rewards, of which this card has none.  But thanks for bringing it to our attention anyway - it is a good deal for those who fit the card.

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

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