topic Re: USAA is one strange duck in Credit Cards

USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 18:33:40 GMT

I app'd for the USAA Limitless Card last month. I was really excited about this product. I recevied an instant denial for "excessive debt". I don't have any consumer debt (only federal student loans). USAA wouldn't budge on a recon. Needless to say I wasn't happy. You can read about it at http://ficoforums.myfico.com/t5/Credit-Cards/USAA-2-5-Targeted-Offer-UPDATE-MARCH-2017/m-p/4883758 USAA countered with a secure visa -- seriously!!!!

I closed my USAA accounts (checking, savings, and existing credit card) last month.

I logged onto USAA.com today to make sure all the accounts were closed and had a new offer pop up. So, I checked it out. Low and behold a targeted offer for their rate advantage visa @ 7.40%. So, last month USAA would only approve me for a "secured visa", but now I have a targeted offer for their lowest interest rate. Nothing has changed on any of my reports. Go figure.

I truly don't understand USAA. This whole thing is comical and I'm glad to be done w/ them. Thought I'd share this story, I find it somewhat amusing.

Re: USAA is one strange duck

AverageJoesCredit — Thu, 13 Apr 2017 18:35:16 GMT

Quack Quack

Re: USAA is one strange duck

Aduke1122 — Thu, 13 Apr 2017 18:40:32 GMT

They are very strange sometimes but I do love them they have given me a chance when no one else would when I started my rebuild and they have stuck by me since , I must say after my last deal with them last mth I kinda am mad at them . I have a car loan with them it is 6mth old I had to take what I could get back then bc we needed the car desperately so they gave me an apr of 9% now I was just over 600 then so understanding the Apr they gave me was fine . Now that I have received raised my scores over 60 pts I tried to refi the loan with them they came back with an APR of 13% and the rep sounded happy like Congrats blah. She was like should we go thru with the final steps and I was like hell no, I told
You I was trying to decrease my Apr not raise it up .. needless to say I will be Refi with another lender soon

Re: USAA is one strange duck

Aduke1122 — Thu, 13 Apr 2017 18:41:56 GMT

What were your scores when they denied you for the Limitless?

Re: USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 18:58:35 GMT

I don't remember the exact number on the USAA letter, but I believe in the 790s accoridng to their model. My FICO 8 from Amex/Disc/Citi was in the low 800s. Literally nothing has changed sine the app.

I also had an existing 24k CL on my USAA visa (which I closed last month). However, I was consistently getting targeted offers for their preferred cash rewards card while I had my old visa, so I don't think that I hit my "internal" limit w/ them. Idk. I really don't undertand them.

Re: USAA is one strange duck

Aduke1122 — Thu, 13 Apr 2017 19:07:12 GMT

Wow sorry to hear that , that's just crazy !! Esp with your scores and all

Re: USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 19:15:26 GMT

How much student loan debt do you have? I don't see why the need to cancel all your stuff with them just because they didn't approve you for one card at one point in time. Their car buying service has great deals on BMW's. I got over 7k off my X3 last year plus a low interest rate (1.9 percent for 72 months).

Re: USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 19:29:52 GMT

$200k. Which seems like a lot, but law school isn't cheap. No car loan/credit card debt/etc. Income is little above $100k and I'm on the IBR payment plan. Really, no other banks have any issue w/ the student loan debt. If that was USAA's reason I would be even more ticked off - I view the student loan debt similar to a mortgage.

Well, after I called for the recon they were complete jerks to me. They refused to look at my reports and kept telling me to contact the credit bureaus to dispute. There is nothing to dispute. If a bank throws shade at me, I walk away. They need me, I don't need them. I can get great deals on cars elsewhere.

Re: USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 19:52:14 GMT

Well the 200k student loan debt explains it. I think Penn Fed has a 2 percent back card for veterans. You might want to try there.

Those student loans seem to be a problem for recent college graduates. I am sure if the student loan program were eliminated the cost of tuition would go down instantly.

Re: USAA is one strange duck

Anonymous — Thu, 13 Apr 2017 20:05:02 GMT

Hahaha. Well, again if that is USAA's idea of debt problems I'm glad I walked away from them. Complete idiots. Graduate/Professional school is crazy expensive. It will take 10-20 years for any recent law or med student to pay back their loans, unless they have family money or huge schloarships. These are the people who will likely bring in the big bucks later on in life. Assuming no DTI problems (and I have no issue there what so ever) who cares about some student loan debt? Would USAA had of denied me if I had a second mortgage for a vacation home assuming no DTI problems? Probably not. Education is an investment in your future - so is a mortgage.

I'm speculating at the reason for the denial, it's the only possibility. If they had a pair of human eyes look at the app, I'm certain it would have been approved. But any way, they are a weird bank and one that isn't for me. Yet, they continually pepper me with offers even after the denial - weird.

Re: USAA is one strange duck

CreditMagic7 — Thu, 13 Apr 2017 22:15:17 GMT

@AverageJoesCredit wrote:
Quack Quack

Was thinking the exact same thing as in another Oregon CU Duck Story

Re: USAA is one strange duck

Anonymous — Fri, 14 Apr 2017 00:53:04 GMT

I agree that a human should have looked at your whole profile and then made a judgement but they're going to do what's best for them just like you're doing what's best for you. No need to take things too seriously.

Re: USAA is one strange duck

Anonymous — Fri, 14 Apr 2017 01:30:28 GMT

ah20003 you bring up something I do not understand ... in my many years with USAA they have never let me speak with a credit analyst. They do not allow me to p/c products, Soft Inquires, or credit limit re-allocations. Since I know "if you don't like it don't let the door hit you on the way out". Otherwise, they have been good to me and I knew all this going in but, it would be nice to see a little flexibility

Re: USAA is one strange duck

Anonymous — Fri, 14 Apr 2017 01:35:40 GMT

@Anonymous wrote:
Hahaha. Well, again if that is USAA's idea of debt problems I'm glad I walked away from them. Complete idiots. Graduate/Professional school is crazy expensive. It will take 10-20 years for any recent law or med student to pay back their loans, unless they have family money or huge schloarships. These are the people who will likely bring in the big bucks later on in life. Assuming no DTI problems (and I have no issue there what so ever) who cares about some student loan debt? Would USAA had of denied me if I had a second mortgage for a vacation home assuming no DTI problems? Probably not. Education is an investment in your future - so is a mortgage.

I'm speculating at the reason for the denial, it's the only possibility. If they had a pair of human eyes look at the app, I'm certain it would have been approved. But any way, they are a weird bank and one that isn't for me. Yet, they continually pepper me with offers even after the denial - weird.

If it is going to take you 20 years to pay back a student loan I would say your overpaying for your education. If you have a law degree and it's not from a top 14 school or the top law school in your state odds are you will never make the money you spent past a 4 year degree. If you majored in Enginering or Computer Science even a degree from a school out of the top 200 you can make 100k in five years after graduation.

A mortgage for 200k is totally different as you could potentially sell your second home or rent it out. But I am sure if you had two mortgages on 100k salary and you had as much credit card limits as you do they would deny you as well.

I would say 200k in credit card debt would be better than 200k in student loans as you can always declare bankruptcy and credit card debt is gone. I fell that student loan system is really unfair as an 18 year old doesn't have enough sense to figure out if such a loan is reasonable decision.

i have a friend who joined the Air Force and they payed 100 percent of her medical degree. She just has to serve in military for six years.

Re: USAA is one strange duck

Anonymous — Fri, 14 Apr 2017 10:55:52 GMT

@atomicfront. You have many valid points. I disagree that student loans are a bad thing. And yes you are right about making more with a technical degree (which I have) and yea I made more money before I went to law school than I do now.

But, I went to a T14 and decided on a great government lawyer job after law school. Anyway, it doesn't pay as much as a Big Law, but a fellas gotta have a life. Plus, it's great trial experience that new associates don't get at firms. Meaning, I transition to Big/Medium Law later on in life. Way into the weeds here, but w/ law school I generally agree that the debt isn't worth it unless you go to a good school (around T14) with good grades. Without good grades you're screwed no matter what (unless Harvard/Yale/Stanford).

Yea you cannot have student loans discharged in BK. But they may be cancelled if I die or am totally disabled (a big benefit for my estate). IBR payments reduce my monthly payment to less than most people's new car payment (a nice car nonetheless). Plus, if my goal is to declare BK and have them discharged which it never will be, I can always refinance them into private student loans (assuming those can be discharged haven't read a contract on them) or BT on credit cards. I'd never do that. I pay my bills.

Also, I have assets that are equal to if not exceed my student loan debt. Between car, retirement accounts, liquid cash, etc. I have these because of student loans. Student loans help people move up the economic latter. They aren't for everyone, but work the the majority. Schools like Strayer, Charlottle School of Law, and University of Phoenix are the problem not T14-50 law schools.

Back to the point. I have no idea why USAA denied me. They won't tell me. "Excessive Debt". That's it. They won't review my file or give me any further reason. So, I'm guessing and that is the problem w/ USAA.

Also, JAG is an amazing choice I'd recommend for any law student. Public Loan foregiveness, plus most T14s will help you with your student loan payments b/c of public interest law, and the particular JAG program may help offset too. Amazing experience. I'm a little jaded on the military b/c of previous AD.

Re: USAA is one strange duck

Anonymous — Fri, 14 Apr 2017 15:12:40 GMT

ah20003 a little off subject but in reference to your technical degree ... mining companies want at least a two year technical degree and pay any where from $70,000 to $120,000 a year (includes overtime). Mining is now a modern state of the art business using technology and computer driven programs to do the thinking with robots. One mine went from 3,000 to 300 and produces the same amount of iron ore. The days of the uneducated laborer with no high school diploma are over. This is such a manual business it is hard to grasp the level of education and money that exists in the business.