Disappointing USAA Approval, then immediately cancelled

[Anonymous]

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@Anonymous wrote:

Hey all,

I seem to have about a 30-day clock in my head that starts to make me feel wonky if I don't try to someone get an HP on at least one bureau...  So bored last night I got to thinking, it'd be nice to have a USAA Credit Card so I could have Overdraft Protection on my Checking accounts with them.  So I pull up their credit card page and decide on their Preferred Cash Rewards.  Nothing special, and nothing I don't already have, but the really the only one I might possibly ever use out of their selection.

I fill out the app, click submit and the page takes forever to come back.  It finally does and says I'm approved for $2,000 at 26.15% APR.  Yikes, a crummy limit and the maxed APR?  Granted two years ago I would have killed for an unsecured card at $2,000.  But now with cards ranging from $25,000 limits to $4,500 limits and one low ball (Barclay Apple Visa) at $2,700, $2,000 felt very low for me.

I was wondering what that was all about since I had some offers for an affiliate card of there's expiring last month at 17.9% or 17.99%.  I know from my friend who works at USAA that the affiliate cards typically charge 1% more of APR to give to those affinity groups.  Not worrying too much about it, I go to bed and figured I'd give USAA a call in the morning.

So driving to work I call USAA and the first rep I speak with tells me it was the Credit Bureaus, not USAA that determined my limit and my APR, yeah ok...  I didn't want to be a jerk/expletive deleted, so I didn't argue and when I asked if I could talk to someone in underwriting the call dropped.  I call back and get a different rep, explain that I know they pulled Equifax, I know my true Equifax FICO score was 719, and that I was rather disappointed with the APR and the limit.  I ask politely if there's anyone who could manually take a look for a reconsideration.  He says no, I ask about underwriting, he says well 99% of the time they'll agree with the computer.  I said, sure I understand, but what about that 1%?  He insists it wouldn't matter even if an underwriter takes a look.  Fair enough I say, then I'd just like to close the card.  I had no intentions of bluffing, but figuring that might be the only way they'll budge, if not I'm more than happy to close it.

So that rep puts me on hold, for a good 4-5 minutes and a "Senior" rep comes on.  She asks why I want to cancel, I re-explain, they stand their ground and so do I.  I really hate to waste the HP and the AAoA ding, but knowing USAA does HP CLIs if the CLI is requested, there was no point to keeping a card that I would literally never use.  A lower APR and a better SL would have made it easier to justify keeping it around as overdraft protection.

Am I being a snob?  More than likely, yes.  But at the same point if Barclay gave me $2,700 almost a year ago with a 658 TU and major derogatories (defaulted student loans, a collection account, and a couple 60-day lates on other student loans), yet USAA only wanted to give me $2,000 with a 719 EQ with no major derogatories than they really must not want my business that bad.  I guess I'll just stick to insurance with USAA, maybe it's about time I move what banking I have with them away from them too and stick with companies that are willing to give me decent SLs...

Oz

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This is why I refuse to bank with Bank of America, Wells Fargo etc. Its like im another member of the cattle. Mooooooooo

[gibeon]

I think this is how USAA runs if you have a paycheck credit past.

I settled a charge off with them in mid June last year, then they approved me about a week later for a Classic Amex at $1,500, then at the beginning of November they approved me for $5,000 Rewards Plus Amex. Scores were in the low-to-mid 600's.

I think they just want to see how you do first, before they'll give out "adult" limits.

It is frustrating that they won't PC cards though.

[UncleB]

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@gibeon wrote:
I think this is how USAA runs if you have a paycheck credit past.

I settled a charge off with them in mid June last year, then they approved me about a week later for a Classic Amex at $1,500, then at the beginning of November they approved me for $5,000 Rewards Plus Amex. Scores were in the low-to-mid 600's.

I think they just want to see how you do first, before they'll give out "adult" limits.

It is frustrating that they won't PC cards though.

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+1

It does appear things might be getting better, though... Saleen099 got both an APR reduction and a PC at one go. 

http://ficoforums.myfico.com/t5/Credit-Cards/USAA-Lowered-my-APR/td-p/4440429

[gibeon]

Thanks for the link, UncleB. I'm wondering if Saleen had the Classic Mastercard before it was PC'd.

I have heard that the Classic Cards can "graduate" but havent done any actual research on the subject.

[UncleB]

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@gibeon wrote:
Thanks for the link, UncleB. I'm wondering if Saleen had the Classic Mastercard before it was PC'd.

I have heard that the Classic Cards can "graduate" but havent done any actual research on the subject.

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That's an excellent question... based on a few threads it seems things over at USAA may be in a bit of 'flux' - and in a good way.

Hopefully there will be more data points on this soon! 

[fullstackdev]

Hey Oz,

It sucks that USAA wouldn't budge on your approval. I'd agree with others here they probably just wanted to see how you handle the account. I was approved for a $1,500 Classic in November. After paying the card off the every time I used it, I applied for a Visa signature card in February  and was approved for $5,000 at 18.something % APR. Don't give up on USAA! 

[Anonymous]

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@ddemari wrote:
that's a really high apr for credit union card. I'm still trying to figure out a way to join lol. At least u feel satisfied not taking the card. Maybe reapply in 6 months

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A minor correction. USAA isn't a credit union, they're a Federal Bank.

[ccpat]

Can I get a USAA if I don't have the military connection?

[Anonymous]

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@ccpat wrote:

Can I get a USAA if I don't have the military connection?

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Nope.

[UncleB]

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@ccpat wrote:

Can I get a USAA if I don't have the military connection?

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I'm afraid not... in some ways they're even more difficult to gain membership with than NFCU. 

With USAA all vets are eligible (which is actually more lenient than NFCU), but outside of serving yourself you either have to inherit a membership from a parent or by marriage. 

There are no child to parent, grandparent, or roommate paths to membership with USAA.  Also, siblings are unable to pass on membership to other siblings.

However, since all vets are eligible (forever) some folks have easily (if you can call it that) gained membership by helping a grandfather who fought in WWII or Korea become a member, then their parent, then themselves.  However once the grandparent passes away the chance is lost; there's no 'retired' loophole like with NFCU.

USAA's website has a more detailed explanation, but the above info hits the 'high points'.