topic USAA vs NFCU in Credit Cards

USAA vs NFCU

greatscott85 — Wed, 27 Oct 2021 23:10:17 GMT

I'm a big supporter of NFCU but have lately been considered a USAA CC card or two, already am a member there. We hear LOTS of NFCU and some on USAA (nowhere near the same). Ease of rewards? SP CLI's? Value of their points vs NFCU? Complete waste of time?

Maybe there is a big thread somewhere I missed? Thanks in advance for the thoughts!

Re: USAA vs NFCU

cashorcharge — Wed, 27 Oct 2021 23:53:57 GMT

I can provide some details and likely others will too.

USAA is a bank, versus a CU like NFCU. Hence, the bank policies aren't as "generous" we'll say...as NFCU. Also, USAA makes a lot of money from their insurance products and it's becoming more and more apparent that their rates can be beaten elsewhere.

Back to credit, USAA pulls EX for all Credit Cards. They use your F5 score (mortgage score) which typically isn't as high nor as forgiving as F8 like NFCU does. Also, you've likely read and can become quickly well versed on NFCU's CLI policy, card policy, underwriting policy etc. USAA is not as easy to navigate, they are not as generous and while I would categorize their CLI's like Chase....AUTO-CLI's do occur rarely but more often than not, cardholders are typically/usually not given unrequested CLI's. All requested CLI's with USAA are EX HP F5...no SP CLI's. Their rewards card is similar to others but NFCU is more generous. Also, NFCU has more card options and while I don't know for a fact, I believe there total CL exposure you can have is higher than with USAA. Lastly, the APR's (should that concern you) are better with NFCU and they have more aggressive BT offers.

So in essence, USAA isn't bad...but it's my opinion...NFCU is better. If I was looking for a BANK to build a relationship wish...USAA would not be my first choice. Getting a card from USAA is all well and good but I feel there are better options out there...from a CLI, Points, APR and ease of working with perspective...you can do better than USAA

Re: USAA vs NFCU

greatscott85 — Thu, 28 Oct 2021 01:21:19 GMT

@cashorcharge Thank you very much for the details!

True story: I had USAA 14 years ago and did use their insurance products then. They "lost" a paycheck of mine when I was on active duty, which as an E-2 (or any rank for that matter) was HUGE deal. Left them for NFCU and haven't looked back until this thought.

Fico5!? Super lame. Ah CLIs like Chase, rough. NFCU spoils us haha!

In lieu of USAA, bank wise, thinking more BofA, US Bank, Citi? I have Chase as the secondary direct deposit, they are just ok. The CSP is awesome. I guess I'm thinking more about another FI like NFCU but not. Not that I don't enjoy them, I do. But I think in the past few years, they have lost some of that personal touch. I'm open to another CU, member of Langley (just ok), Service CU (just ok), DCU (pretty good but limited credit products), Affinity FCU (pretty good), PenFed (pretty good), BECU (great but limited credit products). Honestly, I may be looking for a unicorn...

Re: USAA vs NFCU

Hex — Thu, 28 Oct 2021 02:16:35 GMT

USAA uses Experian FICO 3. That score is more similar to the Experian mortgage score than the Experian FICO 8 but it's not the Experian FICO mortgage score AKA FICO 2.

I have been declined for a USAA card but I have 3 Navy cards with $77.4K in combined limits.

My Sister used to work at USAA bank and when I expressed my disappointment to her about be declined for a card she said USAA started out as and continues to be an insurance company that happens to also own a bank. She said because they are at their core an insurance company they are very conservative and risk averse.

I have a BK7 from 2016 and haven't applied for anything from USAA for 4 years I think. I have a 721 FICO 3 now and I think my BK is probably seasoned enough to gat one if their cards now but I'm planning to apply for a mortgage soon so I can't apply now.

I think Navy has better cards but a USAA card was my goal when my BK was discharged and as a result it still is despite the fact their cards are pretty average.

Re: USAA vs NFCU

UncleB — Thu, 28 Oct 2021 02:09:25 GMT

I've used USAA for my primary checking account since 2012, and I have credit cards with both USAA and NFCU. I agree with the statements made above about both.

USAA gave me my first non-toy limit credit card back when I still had some baddies reporting, so I'll always appreciate that. In many ways, they helped to "jump start" my rebuild.

Anyway, since the Limitless card is closed to new applications (RIP) the only card of theirs that is still available that I would personally consider "interesting" is the Cashback Rewards Plus American Express card, since it could be useful due to 5% cash back on the first $3k in gas purchases each year. Their other cards can usually be matched or beat by products at banks/CUs with less onerous policies.

Another possible use for their cards is for overdraft protection if you bank with them. NFCU has OD protection as well, but it requires a checking line of credit - you can't link to a credit card. (Note that with both USAA and NFCU you can link to a savings account for OD protection as well.)

Re: USAA vs NFCU

Anonymous — Thu, 28 Oct 2021 02:13:47 GMT

@Hex wrote:
USAA uses Experian FICO 3. That score is more similar to the Experian mortgage score than the Experian FICO 8 but it's not the Experian FICO mortgage score AKA FICO 2.

I have been declined for a USAA card but I have 3 Navy cards with $77.4K in combined limits.

My Sister used to work at USAA bank and when I expressed my disappointment to her about be declined for a card she said USAA started out as and continue to be an insurance company that happens to also own a bank. She said because they are at their core an insurance company they are very conservative and risk averse.

I have a BK7 from 2016 and haven't applied for anything from USAA for 4 years I think. I have a 721 FICO 3 now and I think my BK is probably seasoned enough to gat one if their cards now but I'm planning to apply for a mortgage soon so I can't apply now.

I think Navy has better cards but a USAA card was my goal when my BK was discharged and as a result it still is despite the fact their cards are pretty average.

With all the other options out there, am wondering why you even want the USAA card, especially since your dealing with Navy now.

Re: USAA vs NFCU

greatscott85 — Thu, 28 Oct 2021 02:19:56 GMT

@Hex That is such a good point! It's interesting to think of it with insurance being the primary product. Thanks for the input!

@UncleB I would agree that Amex looks interesting at best. But maxing those categories would be pretty easy with decent at best return. I do have access to the Air Force base nearby but the Exchange is almost always more expensive than anywhere else, no tax though. Checking and overdraft protection aren't as much of a concern in my more...fiscally wise years .

Re: USAA vs NFCU

greatscott85 — Thu, 28 Oct 2021 02:22:06 GMT

@Anonymous There may be truth in that! I'm just an explorer of all the things .

Re: USAA vs NFCU

UncleB — Thu, 28 Oct 2021 02:35:31 GMT

@greatscott85 wrote:

@UncleB I would agree that Amex looks interesting at best. But maxing those categories would be pretty easy with decent at best return. I do have access to the Air Force base nearby but the Exchange is almost always more expensive than anywhere else, no tax though. Checking and overdraft protection aren't as much of a concern in my more...fiscally wise years .

Yep, I agree... even with modest gas needs it's not hard to hit the $3k/year, and that's without even taking base purchases into account. That's the main reason I've never considered it myself - I stick with the Sam's Club MC for gas when I can't use Google Pay with my Altitude Reserve.

I also agree about OD protection not being a big issue for many, but at the time when I got my first USAA card it was very reassuring to have even though it never had to 'kick in'. These days I don't think much about it, but I guess some of my habits from the 'old days' are still somewhat with me and I like knowing it's there even though the chances of it being useful are miniscule. I wouldn't apply for a USAA card just for that reason, though.

Another disclaimer... when I first got USAA I didn't have access to NFCU (nor did I even know about them). All things being equal, if I were pressed to pick one over the other today I would probably go with NFCU. USAA isn't terrible by any means, though, and for some people they are a good fit.

Re: USAA vs NFCU

Hex — Thu, 28 Oct 2021 02:36:55 GMT

I guess because when I started my rebuild I thought that when I got a USAA card I'd know I was credit worthy. It's just a personal goal. It's probably not a very logical goal now and yet it persists.

The 5% Amex gas card is the only one they have that offers anything above what I already have. I already have a PenFed card that gives me 4.25% back on gasoline but it's points so not exactly cashback which I prefer. Also 4.25% isn't 5% right? This does give me a least a little justification for getting a USAA card. If not for that I would need to seriously reconsider my quest.

Re: USAA vs NFCU

UncleB — Thu, 28 Oct 2021 02:53:44 GMT

@Hex wrote:
I guess because when I started my rebuild I thought that when I got a USAA card I'd know I was credit worthy. It's just a personal goal. It's probably not a very logical goal now and yet it persists.

The 5% Amex gas card is the only one they have that offers anything above what I already have. I already have a PenFed card that gives me 4.25% back on gasoline but it's points so not exactly cashback which I prefer. Also 4.25% isn't 5% right? This does give me a least a little justification for getting a USAA card. If not for that I would need to seriously reconsider my quest.

If they offered product changes (another area NFCU has them beat) I would change my USAA Rewards Platinum Visa to the Amex in a heartbeat, but of course that's not an option. The card is now seven years old, though, so I'm not really interested in closing it. They also offer occasional BT promos, which is really all it's good for these days.

At some point if I get tired of messing with Sam's Club (or if I move to an area without one close by) I might go for the Amex myself. You're also not alone with having personal goals that might not be the same as others... my own "goal" was to get all the cards I had years ago. I'm mostly there, and the few stragglers are within reach although I'm holding off since they genuinely wouldn't be that useful, other than meeting my "goal." 🤷‍♂️

Re: USAA vs NFCU

Hex — Thu, 28 Oct 2021 03:02:37 GMT

@UncleB

Someday maybe you'll run out of other better options and you'll still have your goal to circle back to. How many cards left to go?

Re: USAA vs NFCU

UncleB — Thu, 28 Oct 2021 03:09:57 GMT

@Hex wrote:
@UncleB
Someday maybe you'll run out of other better options and you'll still have your goal to circle back to. How many cards left to go?

The only ones that I really think about these days are Macy's and Regions. There are a few others I had back then (JCPenney and Sears are examples) that never were that useful even years ago so they aren't really on the radar, but for some reason I can't let go of Macy's and Regions, LOL. The funny part is, neither would be especially useful to me now. ¯\_(ツ)_/¯

Circling back around to @greatscott85's topic, before I would consider Macy's or Regions I would probably get/try for the NFCU Amex. Even it wouldn't be extremely useful, but at least it would 'fit' with my current lineup.

Re: USAA vs NFCU

Anonymous — Thu, 28 Oct 2021 08:25:01 GMT

@UncleB wrote:
@Hex wrote:
@UncleB
Someday maybe you'll run out of other better options and you'll still have your goal to circle back to. How many cards left to go?
The only ones that I really think about these days are Macy's and Regions. There are a few others I had back then (JCPenney and Sears are examples) that never were that useful even years ago so they aren't really on the radar, but for some reason I can't let go of Macy's and Regions, LOL. The funny part is, neither would be especially useful to me now. ¯\_(ツ)_/¯

Circling back around to @greatscott85's topic, before I would consider Macy's or Regions I would probably get/try for the NFCU Amex. Even it wouldn't be extremely useful, but at least it would 'fit' with my current lineup.

UncleB all this "circling" must mean the air is full of pigeons and it is time to shoot or bring the plane in for a landing! My head is swimming ???

Re: USAA vs NFCU

BearsCubsOtters — Thu, 28 Oct 2021 11:39:07 GMT

@greatscott85 wrote:
I'm a big supporter of NFCU but have lately been considered a USAA CC card or two, already am a member there. We hear LOTS of NFCU and some on USAA (nowhere near the same). Ease of rewards? SP CLI's? Value of their points vs NFCU? Complete waste of time?

Maybe there is a big thread somewhere I missed? Thanks in advance for the thoughts!

I pretty much echo what UncleB has said. I do not believe they are a complete waste of time.

USAA is simply not as good as NFCU. Mostly because they are not as flexible (HP CLI, no product change, no APR reduction etc). However, they are also not bad at all. I also like that USAA is more exclusive-not everybody can be a member. NFCU used to be even more exclusive than USAA in that you had to be active duty to join NFCU or have another "in" like a relative referring you. But for nearly 5 years now, it seems everybody gets in to NFCU. I suspect some are fibbing about their eligibility and NFCU is not checking but that is just speculation and a topic for a Smorgasboard thread.

Back to the point, I think you should consider the USAA Cashback Rewards Plus American Express for the 5% on gas (up to $3000). Yes, they pull EX for approval and yes, they seem to HP EX for CLI's as well (my first one was EQ not sure why they changed...) but those increases are usually very well worth it. My last HP CLI was $10,000 increase. So worth it. Rewards post right away and you can control how and when they are redeemed, in any amount.

Apples to apples, NFCU is better in pretty much every way. I am very glad that I have my USAA Limitless Cash Rewards card though and he gets more use than my NFCU Cash Rewards, even with the recent increased cash back of 1.75%. But I would consider NFCU over USAA for virtually everything else (mortgage, checking, savings, car loan etc). I want to add too, because I see you have PenFed, that I would rather deal with USAA than PenFed.

Re: USAA vs NFCU

greatscott85 — Thu, 28 Oct 2021 14:04:43 GMT

@UncleB Thank very much for the thoughts here! Funny how those goals of our change over time. Sears/JCP becoming a second class store was NEVER imagined!
We actually do have the NFCU Amex, picked that up earlier this year with a 20k points SUB (I think), 31k limit. A good card, probably need to use it more to be honest.

@BearsCubsOtters You know, I think you hit the mail on the head there. The lessened eligibility requirements to join NFCU,in my mind, has garnered a slight degradation in member service. Not to say it's bad, it just feels a bit different, maybe it's me! The only "hold" for me getting that Amex for USAA is probably that it's an Amex. We LOVE Amex (have the Gold, Platinum, and Hilton) but also it's not as widely accepted in Europe, that does become a slight consideration for any newer cards.

PenFed is just ok to me. I think my rates were a point or two lower there. The Power Cash is a nice no AF 2% card, got a little SUB (maybe $100?) and a 10k limit on it. I'll work my way to their Platinum and Pathfinder, that card is an undervalued travel card.

Appreciate everyone's thoughts here! USAA still sends me emails about their auto insurance but Geico (where I'm at) is cheaper. I pay that twice a year and done with it.

Re: USAA vs NFCU

Gmood1 — Thu, 28 Oct 2021 14:29:37 GMT

I agree with much that has been stated here.

Both USAA and Navy have their pros for sure!

I've been mulling over which to use for my next auto loan. Thinking it might be Navy this time. USAA was by far the easiest to deal with on the last go around vs Penfed, which wasn't bad but not as streamlined.

I didn't have to talk with anyone. Approval and all paperwork was done right on my phone! No mailing paperwork or any of that non-sense.

Glad I got the Limitless when I did! It's still in the rotation and used several times a month.

I wish they would allow you to PC CCs. As I would PC my other USAA CC to something else. That card hasn't been used in years!

Navy is so easy to deal with on CCs. Allowing product changes and APR reductions at the drop of a dime!

For banking, USAA is still the Bee's Knees for me. I don't know of any bank that will allow me to do instant transfers from an external FI and the money is available for use immediately. No waiting days for them to process.

Re: USAA vs NFCU

Appleman — Thu, 28 Oct 2021 14:56:06 GMT

I have accounts with NFCU, PenFed, and USAA among others. I still use USAA insurance but know there are some less expensive options out there. I have always been treated quickly and fairly with claims with USAA.

NFCU has always given me the lowest APR available for auto loans and I also low credit card rates. In the past when I applied for personal loans, they were not as competitive with SoFi or PenFed. I have always been happy with the customer service team and their responsiveness.

USAA remains my central bank for cash movement. I have my direct deposit going to multiple banks, but USAA is the best for moving money. If I initiate a transfer from another bank to my USAA account, I can immediately use the funds. Moving money to another bank can still take a day or two but it is reasonable.

Just echoing what a lot of other users are saying.

Re: USAA vs NFCU

unsungivy — Thu, 28 Oct 2021 15:22:28 GMT

My 2 cents, as someone with 3 USAA cards in their household atm:

USAA often has a generous go-to starting credit line of 15k (this has been seen multiple times). But the APRs are above the "deals" you get with most CUs (mine is 16.90%). As stated, all requested CLIs are hard pulls, so you're pretty much going to be staying at that 15k forever.

I regret picking up the USAA Preferred Cash Rewards VS. At the time (which was before I discovered these forums), I knew I wanted a flat rate Visa card and thought that it was between that and the Chase Freedom Unlimited. I picked the USAA card due to already having a relationship with USAA, and that it had no foreign transaction fees. I somehow missed that it didn't have a SUB, and intro 0% APR period, or an intro 0% BT period. Fast forward and the Chase Freedom Unlimited added 3% dining and drugstores, and I'm really really kicking myself. I have used it maybe 5 times ever, and will be closing it in April after having had it 3 years (I have better cards now thanks to these forums).

My husband has been the holder of 2 cards, and his first being the points-based AmEx (3x dining 2x groceries) that has been stuck at a $2500 limit for the last 7 years is useless, and USAA does NO PRODUCT CHANGES EVER, so he's stuck with it as his oldest card. However, I had him open the cashback AMEX that they offer, as he is active duty on a military base, and that card has been VERY useful for 5% gas and 5% base purchases (I usually try to get him to stick to just the gas with it, because there's a yearly limit to the 5% combined between the two categories). As his second USAA card after his credit improved, they gave him the 15k at opening.

Overall their credit card offerings are limited: 5 choices total (2 AmEx [1 points, 1 cashback], 3 Visa [1 points, 1 cashback, 1 low rate]), . Neither of the two cashback cards have SUBs, none of the cards have 0% APR for purchases or 0% intro BT. They do have no foreign transaction fee. That being said, that doesn't mean that the cards may not meet YOUR needs, although you can LIKELY find better on these forums. My husband finds the AmEx cashback a perfect fit for a long-term card for his wallet.

Re: USAA vs NFCU

greatscott85 — Thu, 28 Oct 2021 16:18:57 GMT

@Gmood1 This is good stuff! I really feel like I missed out on the Limitless card. IF they brought it back, that's a no brainer!

Instant FI transfers is very interesting! I do conduct these transfers amongst different FI, some are very slow!