topic Re: Usaa membership credit card charge off effects on insurance in General Credit Topics

Usaa membership credit card charge off effects on insurance

MyDataMyChoice — Fri, 19 Jan 2018 18:33:48 GMT

Anyone have a USAA credit card charge off?

Do they sell the debt? Sue?
Debt is 5k

I have auto life and homeowners

Should I start shopping elsewhere for Insurnace? Will they cancel me

Re: Usaa membership credit card charge off effects on insurance

EJMiv — Fri, 19 Jan 2018 19:50:48 GMT

If you value your insurance with USAA, I'd recommend not burning them. Homeowners isn't the cheapest, but it's the best contract on the market from a coverage standpoint.

You will likely be nonrenewed on your policies, and won't be able to issue new policies until you've paid the uncollected debt.

Re: Usaa membership credit card charge off effects on insurance

MyDataMyChoice — Fri, 19 Jan 2018 20:18:28 GMT

What if I end up filing for chapter 7?

Re: Usaa membership credit card charge off effects on insurance

EJMiv — Fri, 19 Jan 2018 20:29:32 GMT

Bankruptcy would allow you to keep your insurance. In either scenario, depending on which state you live in, USAA uses credit-based insurance scores in rating your premium.

Statistically, lower credit scores correlate to a higher likelihood of claims activity, so don't be surprised if your rates increase as well.

Re: Usaa membership credit card charge off effects on insurance

Anonymous — Fri, 19 Jan 2018 20:30:08 GMT

@JTC403 wrote:
What if I end up filing for chapter 7?

That's just as bad, if not worse than a charge off.

Expect to be blacklisted by USAA if you go through with CH7.

Re: Usaa membership credit card charge off effects on insurance

simplynoir — Fri, 19 Jan 2018 20:37:12 GMT

Found this post interesting to say the least with regards to your situation OP.

http://ficoforums.myfico.com/t5/Credit-Cards/USAA-Blacklist/m-p/4861938#M1418698

Re: Usaa membership credit card charge off effects on insurance

MyDataMyChoice — Fri, 19 Jan 2018 21:42:22 GMT

Thanks. I did see that.

Re: Usaa membership credit card charge off effects on insurance

pizza1 — Sat, 20 Jan 2018 00:41:41 GMT

Hi OP..

I had a CC CO with USAA, which then went into a BK7 back in 2013. I also had insurance with them at the time, and still do. You will be able to keep your insurance, however, you will be BL from any credit products for 5-7 yrs with them.

They just recently let me open a savings act with them. Their past policy was that you would be restricted just to a mobile site, and not even use of their main website for 7yrs, LOL..that just recently changed this past year, and we now have access to the full main website.

You don't need to look elsewhere for insurance, I kept mine, though once the BK hit the PR, and they use LN for that, my rates did go up a little bit. Ive had no issues with them, I even pay my current monthly insurance bill with them with a CC, LOL!

Supposedly, they changed their BK policy from 7yrs, to 5yrs post DC for credit products. I tested it out this past year just to see if I could even apply for credit, and was declined an unsecured cc, but they immediately countered offered a secured version, which I did not accept. Ill try later this year, and see if their new policy holds true to 5yrs post DC.

Hope this info helped!

Re: Usaa membership credit card charge off effects on insurance

Anonymous — Sat, 20 Jan 2018 00:56:44 GMT

Excellent information, Pizza.

I recently became a member of USAA. Should be closing on our home in March of this year. So, guess I'll be calling them for Homeowner's Insurance.

Someone said that it was the best contract on the market. Why?

Thanks again for the information!

Good luck to OP!

Re: Usaa membership credit card charge off effects on insurance

pizza1 — Sat, 20 Jan 2018 00:59:30 GMT

@EJMiv wrote:
If you value your insurance with USAA, I'd recommend not burning them. Homeowners isn't the cheapest, but it's the best contract on the market from a coverage standpoint.

You will likely be nonrenewed on your policies, and won't be able to issue new policies until you've paid the uncollected debt.

This is an untrue statement. I had a CC CO with them 2 yrs before I filed BK on them, and I was still left intact with my insurance. Most are, as the insurance and credit/loans act differently and are seaprate from one another. Not to say that you wont be BL from credit from them for awhile, because you will, but they wont NOT renew your policy because of it.

Re: Usaa membership credit card charge off effects on insurance

EJMiv — Sat, 20 Jan 2018 01:19:38 GMT

@pizza1 wrote:
@EJMiv wrote:
If you value your insurance with USAA, I'd recommend not burning them. Homeowners isn't the cheapest, but it's the best contract on the market from a coverage standpoint.

You will likely be nonrenewed on your policies, and won't be able to issue new policies until you've paid the uncollected debt.
This is an untrue statement. I had a CC CO with them 2 yrs before I filed BK on them, and I was still left intact with my insurance. Most are, as the insurance and credit/loans act differently and are seaprate from one another. Not to say that you wont be BL from credit from them for awhile, because you will, but they wont NOT renew your policy because of it.

In context to the original question about charging off, my response was correct.

In cases of bankruptcy, policies are left in tact as I later stated after op asked about that.

USAA has different policies in places for uncollected accounts versus bankruptcy. Source: USAA employee here.

Re: Usaa membership credit card charge off effects on insurance

EJMiv — Sat, 20 Jan 2018 01:43:16 GMT

@Anonymous wrote:
Excellent information, Pizza.

I recently became a member of USAA. Should be closing on our home in March of this year. So, guess I'll be calling them for Homeowner's Insurance.

Someone said that it was the best contract on the market. Why?

Thanks again for the information!

Good luck to OP!

Congrats on your home. When you shop for homeowners rates, be sure you're not simply shopping for the cheapest rate. Insurance is not a product, it's a risk transfer contract, and in the event you actually will need to use it you'll get what you've paid for. Compare the actual contracts and not just prices.

USAA only writes an open peril policy, which means all losses to your home are covered unless they're specifically excluded (like flood). Other insurers offer multiple types of policies, and the most common is a broad named peril policy, which ONLY covers you in the event of specific perils listed on the policy (like fire and lightning).

For your personal property, USAA's contract gives replacement cost coverage, where as others are typically actual cash value (although replacement cost can usually be added by endoresement with an additional premium). Think of it this way: If it costs you $5000 to replace your TV and you have a $1000 deductible, you'd get $4000 with replacement cost. With actual cash value, depreciation is factored. Under that same scenario, your insurer calculates how much usable life was remaining at the time of loss. If they say you only had 50% remaining life expectancy, then you'd be getting $1500 towards that new $5000 TV ($5000*50%-$1000).

There are some other benefits that are automatically included. I'd encourage you to shop for other rates and get copies of the actual contracts before you call USAA. They can do a full insurance review with you so you can see what you'd be getting from USAA compared to some one else, line by line.

Re: Usaa membership credit card charge off effects on insurance

pizza1 — Sat, 20 Jan 2018 02:10:54 GMT

@EJMiv wrote:
@pizza1 wrote:
@EJMiv wrote:
If you value your insurance with USAA, I'd recommend not burning them. Homeowners isn't the cheapest, but it's the best contract on the market from a coverage standpoint.

You will likely be nonrenewed on your policies, and won't be able to issue new policies until you've paid the uncollected debt.
This is an untrue statement. I had a CC CO with them 2 yrs before I filed BK on them, and I was still left intact with my insurance. Most are, as the insurance and credit/loans act differently and are seaprate from one another. Not to say that you wont be BL from credit from them for awhile, because you will, but they wont NOT renew your policy because of it.
In context to the original question about charging off, my response was correct.

In cases of bankruptcy, policies are left in tact as I later stated after op asked about that.

USAA has different policies in places for uncollected accounts versus bankruptcy. Source: USAA employee here.

I kind of figured that as much given your "knowledge base" to questions. The general folks on here dont go on and on about a lender unless they know first hand

Re: Usaa membership credit card charge off effects on insurance

Anonymous — Sat, 20 Jan 2018 02:36:36 GMT

Thanks for the information, Pizza. I'm a new USAA member. I just got my first quote from progressive. I'll be calling USAA as well.

Have a great weekend!

Re: Usaa membership credit card charge off effects on insurance

MyDataMyChoice — Sat, 20 Jan 2018 04:08:26 GMT

Good info on the insurance too

Thanks

Re: Usaa membership credit card charge off effects on insurance

seattlecredit08 — Mon, 22 Jan 2018 03:33:52 GMT

Question: Has anyone been able to successfully negotiate Pay for Delete (PFD) with USAA with regard to a credit card chargeoff?

As I understand, they simply don't budge when it comes to PFD.

Thanks!!