USAA Secured Cards DO NOT Unsecure

[sweettea]

I was just on the phone with USAA asking about the future of my secured Platinum Card I have with them. I've had it for over a year now and was recently hit with an annual fee on it as well.

Seeing as how I have picked up a few unsecured cards and it would be nice to have my money back that I put into it, I wanted to know what the likelihood of getting it unsecured would be.

Answer - It would never unsecure. I will continue on for 2 years (same time as the CD it is tied to takes to reach maturity) and at the end of the 2 year period, I can either choose to continue for another 2 years or close the account.

Basically, if I wanted a different card in the USAA family, I would have to app for it. If I decide to close the card before the 2 years are up, I was told I would lose 180 days of interest which could mean a part of my own money not being returned to me. I have a zero balance now so, no, it has nothing to do with the balance. Its how the CD itself works.

I'm thinking of calling in again because this was not what I was told months ago, but policies could have changed as well.

Either way, just a heads up for anyone considering a USAA secured card.

[Anonymous]

Yeah, that's too bad about your USAA secured c/c...

But all's not lost. First, I get the fact that you were "told" something before and now are being "told" something different. My whole philosophy on that is this: I don't believe a thing I'm "told" by any CSR - whether what I'm "told" benefits me or  not, or if it's what I want to hear or not. Take your paperwork out and scour your secured credit card agreement - it WILL address the secured to unsecured issue or it won't. If it doesn't, it was NEVER going to get to unsecured status anyway. In other words, if it ain't in writing somewhere where you can see it with your own eyes, anything you're told should be taken with a grain of salt. 

What you should focus on is:

1. Use your secured USAA c/c to your advantage during it's 2 year term. PLAN to close it in 2 years but during that time build up a positive payment and useage history.

2. While that's going on, guess what? You MIGHT find in your USAA offers one day soon an pre-approval for one of their unsecured credit cards. Just because you have a secured card with them doesn't mean at all you won't qualify for one of their other cards sooner or later. Focus on that and make that your goal if you want one of USAA's unsecured cards.

Either way, best of luck and keep your eye on the prize. Resonsible usage and payments today leads to amazing credit opportunies tommorrow...

[ezdoesit]

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@Anonymous wrote:

Yeah, that's too bad about your USAA secured c/c...

But all's not lost. First, I get the fact that you were "told" something before and now are being "told" something different. My whole philosophy on that is this: I don't believe a thing I'm "told" by any CSR - whether what I'm "told" benefits me or  not, or if it's what I want to hear or not. Take your paperwork out and scour your secured credit card agreement - it WILL address the secured to unsecured issue or it won't. If it doesn't, it was NEVER going to get to unsecured status anyway. In other words, if it ain't in writing somewhere where you can see it with your own eyes, anything you're told should be taken with a grain of salt. 

What you should focus on is:

1. Use your secured USAA c/c to your advantage during it's 2 year term. PLAN to close it in 2 years but during that time build up a positive payment and useage history.

2. While that's going on, guess what? You MIGHT find in your USAA offers one day soon an pre-approval for one of their unsecured credit cards. Just because you have a secured card with them doesn't mean at all you won't qualify for one of their other cards sooner or later. Focus on that and make that your goal if you want one of USAA's unsecured cards.

Either way, best of luck and keep your eye on the prize. Resonsible usage and payments today leads to amazing credit opportunies tommorrow...

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+1 Well said

[DaveSignal]

I started my rebuild with a USAA secured card.  4 months with this and USAA approved me for a $3k unsecured rewards card.  I then closed my secured card after 1 year (before the annual fee).  I've been coasting through the credit world ever since.  Thank-you USAA.

[Anonymous]

Thanks for the heads up. That really is for the birds! Citi Bank and Bank of America really do unsecure and return your deposit. Been their and was satisifed. Another point, take a look at the redemptions for cash. There are several different card issuers with way better redemption schedules other than the USAA Rate Advantage, Citi, BoA, Chase and other banks have better cash. Funny how people focus on the earnings and forget to look at the redemption.

[sweettea]

Unusuallyconfused - I appreciate the words of wisdom. I am 14 months into the 2 year period with the card now. It was my first major credit card for rebuilding. Only one store card is older than it (by a month). I've since added a number of credit cards with decent or really good limits (see signature), so it's definitely been useful to me. I just didn't recall being told the card would never unsecure when I originally had the conversation before opening the card. I had hoped it would graduate into a non-secured card which was what the rep had led me to believe. Now I know that meant that my good history would lead them to potentially offering a different card to apply for. My post was a PSA to others considering a secured USAA card, that's all.

I do plan on closing it next year when the CD matures. Funny enough, I did see an offer to apply for their Rate Advantage card earlier, but since it didn't say I was pre-approved, I am ignoring it. I honestly have my eye on other cards now.

[sweettea]

DaveSignal - I was told to check back in 6 months and when I did, they said my BK (discharged Jan '09) would not allow for me to get an unsecured card. They had happily offered me another secured card however. It was discouraging so I didn't even try for any other cards until finding this board and another and learning that other credit options were available despite having a BK.

[myjourney]

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@sweettea wrote:
DaveSignal - I was told to check back in 6 months and when I did, they said my BK (discharged Jan '09) would not allow for me to get an unsecured card. They had happily offered me another secured card however. It was discouraging so I didn't even try for any other cards until finding this board and another and learning that other credit options were available despite having a BK.

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Sorry you lost money but your rebuild is far past secured cards now so your OK

[sjt]

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@ezdoesit wrote:

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@Unselfconsciously wrote:

Yeah, that's too bad about your USAA secured c/c...

But all's not lost. First, I get the fact that you were "told" something before and now are being "told" something different. My whole philosophy on that is this: I don't believe a thing I'm "told" by any CSR - whether what I'm "told" benefits me or  not, or if it's what I want to hear or not. Take your paperwork out and scour your secured credit card agreement - it WILL address the secured to unsecured issue or it won't. If it doesn't, it was NEVER going to get to unsecured status anyway. In other words, if it ain't in writing somewhere where you can see it with your own eyes, anything you're told should be taken with a grain of salt. 

What you should focus on is:

1. Use your secured USAA c/c to your advantage during it's 2 year term. PLAN to close it in 2 years but during that time build up a positive payment and usage history.

2. While that's going on, guess what? You MIGHT find in your USAA offers one day soon an pre-approval for one of their unsecured credit cards. Just because you have a secured card with them doesn't mean at all you won't qualify for one of their other cards sooner or later. Focus on that and make that your goal if you want one of USAA's unsecured cards.

Either way, best of luck and keep your eye on the prize. Responsible usage and payments today leads to amazing credit opportunities tomorrow...

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+1 Well said

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+2

Also, with USAA and other credit unions when you apply for a unsecured card, your secured card history weighs heavily into their approval process.

[Anonymous]

Basically, USAA sucks all around.  NFCU is Way better.