topic Re: USAA Secured Credit Card in Rebuilding Your Credit

USAA Secured Credit Card

Anonymous — Tue, 13 Mar 2012 05:07:31 GMT

USAA has a secure credit card that is suppose to build credit.
Anybody here have any feedback on it?
I was thinking about opening one or two of them to use on my bills and just pay it off each month.

Re: USAA Secured Credit Card

Anonymous — Tue, 13 Mar 2012 07:17:50 GMT

I am on the edge as well. Trying to decide if I want to apply for one now or wait 6 more months.

Re: USAA Secured Credit Card

chasmith — Tue, 13 Mar 2012 09:51:02 GMT

I have their secured card. The limit is $1,500 secured by a savings certificate. At the time this was the highest available limit and only a Mastercard was available. I think I've heard they may have a secured Amex now as well.

If you have to go secured this isn't a bad card, it was my second. If you have eligibility to USAA you may also be able to join Navy Federal Credit Union, they are more flexible on secured cards, and unsecured mine at one year. USAA might unsecure my card there at two years.

Re: USAA Secured Credit Card

Repo-ed — Tue, 13 Mar 2012 11:23:35 GMT

I've had USAA for 14 years, but I am not eligible for NFCU. If you DO have DoD or direct military ties or family members that are members of NFCU, I would HIGHLY suggest trying to join them, instead.

I am to on the fence about opening their secured Amex card, but now that I vowed to stop apping since last month, I want to try and be strong.

Re: USAA Secured Credit Card

chasmith — Tue, 13 Mar 2012 11:47:31 GMT

I've been with USAA for many years, I have a full membership by virtue of my father's service. I added NFCU two years ago, again based on my father's retired Navy status. I see no reason to choose one or the other, each has strengths and weaknesses but together they represent all my banking, brokerage and non-group insurance. Each offers great customer service and good banking products. NFCU rewcently added a feature to scan deposit checks similar to one USAA has had for years.

USAA - great insurance which makes sense since that'show they started, in-house brokerage is excellent.

NFCU - more willing to extend credit in my experience, especially after bankruptcy.

Neither one has any sympathy for members who have had a bad credit history directly with them.

Membership rules are different, this is what I believe they are:

USAA accepts anyone on active duty, retired, or with an honorable discharge and their extended family for full membership. Banking and credit products are available to "non-members" with some restrictions. Remember, USAA is based on an unusal corporate structure as a "Texas Insurance Cooperative".

NFCU accepts active duty and retired military and their families and "households", they may also accept former military receiving a disability pension from the VA. Because they are a credit union they aren't able to offer services to non-members, AFAIK.

With either one, it's easiest to join via a relative if the relative is a member. I've seen some posts indicating that NFCU may accept a deceased military retiree as qualifying if you have their paperwork.

Re: USAA Secured Credit Card

Repo-ed — Tue, 13 Mar 2012 11:55:31 GMT

USAA is now open to anyone. Just as if it were a BoA.

Re: USAA Secured Credit Card

chasmith — Tue, 13 Mar 2012 12:20:42 GMT

Two levels of service from USAA. "members" qualify for everything, including all insurance.

Public can get most banking and investment services, and possibly some (but not all) insurance services.

Re: USAA Secured Credit Card

Student_Loans_Kill — Tue, 13 Mar 2012 12:37:53 GMT

@chasmith wrote:
I have their secured card. The limit is $1,500 secured by a savings certificate. At the time this was the highest available limit and only a Mastercard was available. I think I've heard they may have a secured Amex now as well.

If you have to go secured this isn't a bad card, it was my second. If you have eligibility to USAA you may also be able to join Navy Federal Credit Union, they are more flexible on secured cards, and unsecured mine at one year. USAA might unsecure my card there at two years.

USAA secured card limit is $5000 lower limit is $250. You can increase the limit at anytime with a current deposit into your 2 year CD. I started with $500 in August, and now my limit is raised to $2000. This CD will count as "reserves" for mortgage application.

If I was doing this all over, I would op for the Secured personal loan with CD deposit, for $2000, then re deposit that into the secured AmEx so you have to positive trade lines on 1 deposit.

Re: USAA Secured Credit Card

chasmith — Tue, 13 Mar 2012 12:39:45 GMT

That's interesting. When I got mine (September 2010) the max was $1,500.00 and couldn't be increased, but that was when it was still a "test" program.

Re: USAA Secured Credit Card

Student_Loans_Kill — Tue, 13 Mar 2012 12:51:16 GMT

@chasmith wrote:
That's interesting. When I got mine (September 2010) the Max was $1,500.00 and couldn't be increased, but that was when it was still a "test" program.

There has never been less than a $2000 limit on any USAA secured product. Their first venture into secured credit was a personal loan for $2000, then the Credit Card for $5000

What is a secured credit card?

It's a real credit card — not a prepaid or debit card, that helps you build or improve your credit score.
When you apply — you'll also be opening a USAA 2-yearCertificate of Deposit (CD), an interest-earning deposit account that has a fixed, two-year term and a $250-minimum initial deposit.
Your CD is a security deposit — the money you put in upfront, from $250 to $5,000, is the card's credit limit.
Earn interest on your CD — your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don't default on your payments.
Start building your credit — opening a CD lets you get a credit card even if you don't have a credit history or have bad credit

Re: USAA Secured Credit Card

Repo-ed — Tue, 13 Mar 2012 12:49:33 GMT

I'd really like to get my hands on that secured amex with hopes of a backdating, but I'll wait out my GW to Amex regardling my delta SM card.

Re: USAA Secured Credit Card

Anonymous — Wed, 18 Apr 2012 16:53:11 GMT

@Student_Loans_Kill:

I've never heard of the $ in a secured CC counting toward "reserves" for buying a home. Can you please explain how the process you described would work better, and why you wish you'd done things that way?

Thanks!

Re: USAA Secured Credit Card

Anonymous — Wed, 18 Apr 2012 18:20:24 GMT

I have the secured USAA American Express card. It has no "member since ______" date on it because its NOT a card directly from American Express, its directly from USAA so---there is NO backdating.

The card is okay. I don't like that they tie up the money for 2 years. I don't like that the card will NEVER graduate. The USAA reps have told us that the idea is to "build a relationship" with credit for two (2) years and then they will see where we stand (hard pull inquiry) and "maybe" allow us an unsecured credit card for $500.

You can add money to your card to increase the credit limit but, it gets tied up for two (2) full years. And, you must wait until that full two (2) years is over with to move on.

I know that I go totally against the grain of most everyone here but, I don't think USAA is all that. We are FULL members yet, our deposits to checking, savings, etc. take forever to clear, as does our payment to the USAA secured Amex card. And, God forbid if we rent a car or buy gas at the pump -- a hold is placed on the card that lasts for 10 days.

YMMV but, for us, we are finding that secured credit cards serve a purpose but, they have been, in our experience, a lot of aggravation. Maybe 5 years from now I will look back and see things differently but, for now, I feel like we are being treated "less than" for not having any credit cards so, the punishment is being confined to a very restrictive way of handing our finances.

Re: USAA Secured Credit Card

Adalen — Wed, 18 Apr 2012 19:44:59 GMT

My USAA Amex is unsecured but I still think of it as a builder card, got it with EQ 607 and only use it for small online purchases through Paypal and the occasional milkshake from McDonald's, haha. So far so good, but I've only had it for about a week.