USAA's Pre-Approved Disapproval

[Anonymous]

Wife already has $62k in CL with USAA over three credit cards.  Eery time we call to find out what their maximum exposure is, they cannot give a straight answer and only say "It depends."  Ok, no big deal.

Three days ago she got snail mail with a pre-approval for their Rate Advantage Visa.  It contained all the "Pre-Screen, Opt-Out" notices and then we found the soft inquiry for the pre-approval on EQ.  She also had the same offer in her online account "My Offers". 

We don't need another credit card, but then she thought this would be good since we can add our son, who just started university, as an AU.  We figured the CL would be low, but that was what we wanted.  We don't feel comfortable putting an 18-year-old kid with no real-world credit experience on a $35k card.  

So she applied.  They pulled EX and immediately declined saying "Maximum credit limit reached."

To decline a pre-approval they need to see issues that weren't apparent when they checked your credit reports for the pre-approval.  They shuld have known her USAA credit limits even before they ran the soft inquiry or, at the very worst, when they ran the soft inquiry, yet they still offered her the pre-approval.  

Is she wrong in thinking the decline is bogus?  Shouldn't they at least cancel the hard pull?  Does she have any recourse?

[Anonymous]

@Anonymous  glad you brought up maximums with USAA. Sure there are some others who have hit the wall. Can't remember the limit. Would it pay you to call USAA and explain what you want to do with the card and see if they could work a small safe limit that could be used by your son? Might be worth a contact. I used to have a credit card with a$1,500 limit I carried hidden in the car just in case (lost wallet, forgot wallet, etc).

[Anonymous]

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@Anonymous wrote:

@Anonymous  glad you brought up maximums with USAA. Sure there are some others who have hit the wall. Can't remember the limit. Would it pay you to call USAA and explain what you want to do with the card and see if they could work a small safe limit that could be used by your son? Might be worth a contact. I used to have a credit card with a$1,500 limit I carried hidden in the car just in case (lost wallet, forgot wallet, etc).

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We tried calling and, although friendly, they just can't get their story together.  First they said the limit is $50k, but when confronted with my wife's $62k, they said it depends on the individual member.  A supervisor said he'd never seen any limit higher than $62k.  Except mine is now $99k.

We asked about re-allocation of CL, but they said it isn't possible.

I think there is something about how pre-approvals work that might be able to force them into at least removing the hard pull.

[hawkins]

Yep that’s USAA HPs for EVERYTHING!!! I also wanted to reallocate some lines and they literally told me they would have to close out that card and then have me reapply just to reallocate the line. AHH HELL NO!!! I don’t ask anything of them anymore. I just keep what they gave me and call it a day.

[Anonymous]

@hawkins... most unfortunate and in my many years with them, they have not budged!

[Anonymous]

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@hawkins wrote:
Yep that’s USAA HPs for EVERYTHING!!! I also wanted to reallocate some lines and they literally told me they would have to close out that card and then have me reapply just to reallocate the line. AHH HELL NO!!! I don’t ask anything of them anymore. I just keep what they gave me and call it a day.

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That has been my experience, too.  

As nice as they can be, they are still in the Dark Ages when it comes to how they manage their CC operations.  No combo, no PC, mediocre rewards ... no nothing.  I don't give them much spend at all.  

[CreditInspired]

Sorry about the decline OP. But, I'm wondering if the prequal DW received was marketing only.

Also, I'm wondering if you made your son an AU on your or DW's call, is it possible to limit the amount the AU can charge. It may be worth a call back to USAA asking them.

GL2U

[Anonymous]

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@CreditInspired wrote:

Sorry about the decline OP. But, I'm wondering if the prequal DW received was marketing only.

Also, I'm wondering if you made your son an AU on your or DW's call, is it possible to limit the amount the AU can charge. It may be worth a call back to USAA asing them.

GL2U

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Thanks for the suggestions.  

USAA does not allow modification on limits for AU.  They have access to full limit.

If the prequal was just marketing, it wouldn't have the prescreen opt-out notice.  And then they wouldn't have had permissible purpose to do the soft inquiry, which EQ specifically has marked as a prescreen soft.  

[MyDataMyChoice]

you can still add an authorized user (your son) just don't give him the card

[ChargedUp]

AFAIK, You cannot modify AU limits on any Visa cards. All card holders have the same card number (with possibly varying expiration and CVV numbers.)

Amex lets you do this easy peasy. Discover and MC let you toggle on/off specific AU cards.