USAA Cards

[SEBanker]

Is it me or are USAA cards just not as attractive as they were a year ago?  It seems like the pricing has increased quite a bit and the rewards not as good. 

[ecxpa]

---

@SEBanker wrote:

Is it me or are USAA cards just not as attractive as they were a year ago?  It seems like the pricing has increased quite a bit and the rewards not as good.

---

What do you mean by "pricing"

[greeneman21]

Not sure what you're looking at, but they came out with 2 recent cashback cards that helps them be more competitive this past December.

[SEBanker]

It just appears that they have instituted a risk based pricing model similar to the large banks......for example 13.99 - 25.99 interest depending upon your qualification/credit report.  The problem with these types of pricing models is that a single blemish will qualify you for the highest rate of 25.99 whereas a prefect record will get you most likely 18.99.  This and the fees they charge have increased. While I realize they are not a credit union I hardly feel these prices are the correct strategy for a member based organization. 

I have a USAA Amex at a very low rate.  If they attempt to reprice it I will certainly end my relationship with USAA.  There insurance rates have increased over the years as well as there mortgage rates.  

[MASTERNC]

They have had risk based pricing for a long time.  My dad has lower rates than I do on my cards, and mine are below 10%.

However, I will admit they seem to be real conservative as of recent.  I applied for an auto loan and they gave me a 2.99% rate (60 months) despite FICO credit scores over 750 (my dad bought a car around the same time and was given 1.99%).  I was approved for rates at credit unions that were as much as 50% lower as USAA's offer.

[C24Webb]

As another poster mentioned, their APRs have been tiered for quite a while... I've been a member since 2011, and APRs have been this way at least since then.  Also, their two recent cashback card additions have made them much more competitive rewards-wise--not game-changing in any way, but going from .45% initial cashback to 1.5% cashback on their MasterCard is much more attractive in my opinion.  

I'm certain there were no rewards cards offered by USAA last year that were downgraded/not offered this year, and instead there are better rewards cards (one mentioned above) to choose from.  What do you see in their credit card portfolio that has gotten worse over the last year in terms of rewards?

[Ups77]

I've been a member since 1997 and have always been treated well. I was active duty for 11 years. The only insurance rate they couldn't beat was for my harley and atv. But credit card wise they beat my citi Amex and other top bank apr.

[SEBanker]

Don't get me wrong I am a happy USAA member and I am not downing them. I plan to be a member for life. It just seems as though they have not been as competitive as in the past. As a banker I see deals more and more often where we are actually beating USAA which almost never happened in the past. And when I started looking through their product offering to try to take a guess at a possible strategy change it just appeared as though the cards were not as competitive pricing wise as in the past. But I will take a second look to see if I was being unfair.  I love my USAA Amex and would not trade it for a card from the bank I work if that tells you anything. 

[takeshi74]

---

@SEBanker wrote:

Is it me or are USAA cards just not as attractive as they were a year ago? 

---

It's never just any one person on any topic.  However, many have found them not as attractive much longer ago or never found them attractive in the first place.  It really doesn't matter -- selecting cards is always about finding what suits the individual.  Some will find them beneficial and some will not.  You just need to do what works for you versus trying to justify your position based on others.

IMO the relatively new 1.5% card was actually a step up.  It's unfortunate that they don't PC though.

---

@MASTERNC wrote:

They have had risk based pricing for a long time. 

---

+1 nothing new in that regard.

[Anonymous]

I don't think USAA's financial products are as competitive as their insurance products.

As speculation on my part I feel that is because their fincinacial products are open to the public whereas the demographic allowed to purchase their insurance products allows them to price more aggresively due to different overall risk compared to the general public served by other insurance companies.

I started lurking this forum and others like it last year and discovered that the credit cards USAA offers are not nearly as competitive as I thought they were. The new 1.5% card is a step in the right direction, but feels a little late to the party (also I think someone mentioned in another thread its an annual redemption only).

Unrelated to credit cards, but I don't think USAA's investment products are very competitive either compared to Schwab or Vanguard.  I do stick with them for what their good at though, the insurance products, and their customer service has always been top notch too.