USAA vs NFCU

[greatscott85]

I'm a big supporter of NFCU but have lately been considered a USAA CC card or two, already am a member there. We hear LOTS of NFCU and some on USAA (nowhere near the same). Ease of rewards? SP CLI's? Value of their points vs NFCU? Complete waste of time?

Maybe there is a big thread somewhere I missed? Thanks in advance for the thoughts!

[cashorcharge]

I can provide some details and likely others will too.

USAA is a bank, versus a CU like NFCU.  Hence, the bank policies aren't as "generous" we'll say...as NFCU.  Also, USAA makes a lot of money from their insurance products and it's becoming more and more apparent that their rates can be beaten elsewhere.

Back to credit, USAA pulls EX for all Credit Cards.  They use your F5 score (mortgage score) which typically isn't as high nor as forgiving as F8 like NFCU does.  Also, you've likely read and can become quickly well versed on NFCU's CLI policy, card policy, underwriting policy etc.  USAA is not as easy to navigate, they are not as generous and while I would categorize their CLI's like Chase....AUTO-CLI's do occur rarely but more often than not, cardholders are typically/usually not given unrequested CLI's.  All requested CLI's with USAA are EX HP F5...no SP CLI's.  Their rewards card is similar to others but NFCU is more generous.  Also, NFCU has more card options and while I don't know for a fact, I believe there total CL exposure you can have is higher than with USAA.  Lastly, the APR's (should that concern you) are better with NFCU and they have more aggressive BT offers.

So in essence, USAA isn't bad...but it's my opinion...NFCU is better.  If I was looking for a BANK to build a relationship wish...USAA would not be my first choice.  Getting a card from USAA is all well and good but I feel there are better options out there...from a CLI, Points, APR and ease of working with perspective...you can do better than USAA

[greatscott85]

@cashorcharge Thank you very much for the details! 

True story: I had USAA 14 years ago and did use their insurance products then. They "lost" a paycheck of mine when I was on active duty, which as an E-2 (or any rank for that matter) was HUGE deal. Left them for NFCU and haven't looked back until this thought. 

Fico5!? Super lame. Ah CLIs like Chase, rough. NFCU spoils us haha!

In lieu of USAA, bank wise, thinking more BofA, US Bank, Citi? I have Chase as the secondary direct deposit, they are just ok. The CSP is awesome. I guess I'm thinking more about another FI like NFCU but not. Not that I don't enjoy them, I do. But I think in the past few years, they have lost some of that personal touch. I'm open to another CU, member of Langley (just ok), Service CU (just ok), DCU (pretty good but limited credit products), Affinity FCU (pretty good), PenFed (pretty good), BECU (great but limited credit products). Honestly, I may be looking for a unicorn...

[Hex]

USAA uses Experian FICO 3. That score is more similar to the Experian mortgage score than the Experian FICO 8 but it's not the Experian FICO mortgage score AKA FICO 2.

I have been declined for a USAA card but I have 3 Navy cards with $77.4K in combined limits.

My Sister used to work at USAA bank and when I expressed my disappointment to her about be declined for a card she said USAA started out as and continues to be an insurance company that happens to also own a bank. She said because they are at their core an insurance company they are very conservative and risk averse.

I have a BK7 from 2016 and haven't applied for anything from USAA for 4 years I think. I have a 721 FICO 3 now and I think my BK is probably seasoned enough to gat one if their cards now but I'm planning to apply for a mortgage soon so I can't apply now. 

I think Navy has better cards but a USAA card was my goal when my BK was discharged and as a result it still is despite the fact their cards are pretty average. 

[UncleB]

I've used USAA for my primary checking account since 2012, and I have credit cards with both USAA and NFCU.  I agree with the statements made above about both.

USAA gave me my first non-toy limit credit card back when I still had some baddies reporting, so I'll always appreciate that.  In many ways, they helped to "jump start" my rebuild.

Anyway, since the Limitless card is closed to new applications (RIP) the only card of theirs that is still available that I would personally consider "interesting" is the Cashback Rewards Plus American Express card, since it could be useful due to 5% cash back on the first $3k in gas purchases each year.  Their other cards can usually be matched or beat by products at banks/CUs with less onerous policies.

Another possible use for their cards is for overdraft protection if you bank with them.  NFCU has OD protection as well, but it requires a checking line of credit - you can't link to a credit card.  (Note that with both USAA and NFCU you can link to a savings account for OD protection as well.)

[Anonymous]

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@Hex wrote:

USAA uses Experian FICO 3. That score is more similar to the Experian mortgage score than the Experian FICO 8 but it's not the Experian FICO mortgage score AKA FICO 2.

I have been declined for a USAA card but I have 3 Navy cards with $77.4K in combined limits.

My Sister used to work at USAA bank and when I expressed my disappointment to her about be declined for a card she said USAA started out as and continue to be an insurance company that happens to also own a bank. She said because they are at their core an insurance company they are very conservative and risk averse.

I have a BK7 from 2016 and haven't applied for anything from USAA for 4 years I think. I have a 721 FICO 3 now and I think my BK is probably seasoned enough to gat one if their cards now but I'm planning to apply for a mortgage soon so I can't apply now. 

I think Navy has better cards but a USAA card was my goal when my BK was discharged and as a result it still is despite the fact their cards are pretty average. 

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With all the other options out there, am wondering why you even want the USAA card, especially since your dealing with Navy now.

[greatscott85]

 @Hex  That is such a good point! It's interesting to think of it with insurance being the primary product. Thanks for the input! 

@UncleB  I would agree that Amex looks interesting at best. But maxing those categories would be pretty easy with decent at best return. I do have access to the Air Force base nearby but the Exchange is almost always more expensive than anywhere else, no tax though. Checking and overdraft protection aren't as much of a concern in my more...fiscally wise years .

[greatscott85]

@Anonymous  There may be truth in that! I'm just an explorer of all the things .

[UncleB]

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@greatscott85 wrote:

@UncleB  I would agree that Amex looks interesting at best. But maxing those categories would be pretty easy with decent at best return. I do have access to the Air Force base nearby but the Exchange is almost always more expensive than anywhere else, no tax though. Checking and overdraft protection aren't as much of a concern in my more...fiscally wise years .

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Yep, I agree... even with modest gas needs it's not hard to hit the $3k/year, and that's without even taking base purchases into account.  That's the main reason I've never considered it myself - I stick with the Sam's Club MC for gas when I can't use Google Pay with my Altitude Reserve.

I also agree about OD protection not being a big issue for many, but at the time when I got my first USAA card it was very reassuring to have even though it never had to 'kick in'.  These days I don't think much about it, but I guess some of my habits from the 'old days' are still somewhat with me and I like knowing it's there even though the chances of it being useful are miniscule.  I wouldn't apply for a USAA card just for that reason, though.

Another disclaimer... when I first got USAA I didn't have access to NFCU (nor did I even know about them).  All things being equal, if I were pressed to pick one over the other today I would probably go with NFCU.  USAA isn't terrible by any means, though, and for some people they are a good fit. 

[Hex]

I guess because when I started my rebuild I thought that when I got a USAA card I'd know I was credit worthy. It's just a personal goal. It's probably not a very logical goal now and yet it persists. 

The 5% Amex gas card is the only one they have that offers anything above what I already have. I already have a PenFed card that gives me 4.25% back on gasoline but it's points so not exactly cashback which I prefer. Also 4.25% isn't 5% right? This does give me a least a little justification for getting a USAA card. If not for that I would need to seriously reconsider my quest.