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USAA Debt Forgiveness

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USAA Debt Forgiveness

After 2.5 hours on the phone with a half dozen people at USAA today I got some information I have long sought.

 

If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt.

 

I live in California, where a collection is time-barred after three years.

 

After seven years it falls off your credit report.

 

After 99 months, USAA for all intents and purposes forgives the debt.

 

I've marked my calendar for 12/22.  Hope this helps!

Message 1 of 13
12 REPLIES 12
Valued Contributor

Re: USAA Debt Forgiveness


@vV35Hszm wrote:

After 2.5 hours on the phone with a half dozen people at USAA today I got some information I have long sought.

 

If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt.

 

I live in California, where a collection is time-barred after three years.

 

After seven years it falls off your credit report.

 

After 99 months, USAA for all intents and purposes forgives the debt.

 

I've marked my calendar for 12/22.  Hope this helps!


I burned USAA and had a $4000 charge off on a CC in 2016 for a derogatory from 2009. Even though the SOL is long over I am still curious as to the reception I would get if I tried to reestablish a relationship with them. I am still being stalked by them with a soft inquiry on my CR about every 6 months. 



















Your FICO credit scores are not just numbers, it’s a skill.

Message 2 of 13
Contributor

Re: USAA Debt Forgiveness


@Medic981 wrote:

@vV35Hszm
I burned USAA and had a $4000 charge off on a CC in 2016 for a derogatory from 2009. Even though the SOL is long over I am still curious as to the reception I would get if I tried to reestablish a relationship with them. I am still being stalked by them with a soft inquiry on my CR about every 6 months. 

Might be too soon... in my case I can't get any banking products with them yet BUT they let me get insurance, which is frankly, the best part of USAA anyway.  Try insurance first?

Message 3 of 13
Contributor

Re: USAA Debt Forgiveness

Laying in bed today I appled for a checking with them and it went through!  This is contrary to what I had previously been told:

 

"If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt."

 

So much for "99 months"?!  Since they're letting me open checking, I assume I'm ok again for credit.  I'd apply for a card too but their offerings are kinda weak anyway so in think I'll wait... but wanted to pass on it that the bank does eventually forgive even with a checking closed with a negative balance!

 

Message 4 of 13
Valued Contributor

Re: USAA Debt Forgiveness


@vV35Hszm wrote:

Laying in bed today I appled for a checking with them and it went through!  This is contrary to what I had previously been told:

 

"If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt."

 

So much for "99 months"?!  Since they're letting me open checking, I assume I'm ok again for credit.  I'd apply for a card too but their offerings are kinda weak anyway so in think I'll wait... but wanted to pass on it that the bank does eventually forgive even with a checking closed with a negative balance!

 


You may still have the flag because I'm not sure I would classify a checking account as a loan or credit.  Do you have any overdraft protection on it?  I'm not familiar with the checking options so I don't know.  Maybe with overdraft protection, I could imagine it might be considered credit.  Since they are still doing a periodic SP,  have you received any prequals?

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Message 5 of 13
Moderator Emeritus

Re: USAA Debt Forgiveness


@Overmedicated wrote:

@vV35Hszm wrote:

Laying in bed today I appled for a checking with them and it went through!  This is contrary to what I had previously been told:

 

"If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt."

 

So much for "99 months"?!  Since they're letting me open checking, I assume I'm ok again for credit.  I'd apply for a card too but their offerings are kinda weak anyway so in think I'll wait... but wanted to pass on it that the bank does eventually forgive even with a checking closed with a negative balance!

 


You may still have the flag because I'm not sure I would classify a checking account as a loan or credit.  Do you have any overdraft protection on it?  I'm not familiar with the checking options so I don't know.  Maybe with overdraft protection, I could imagine it might be considered credit.  Since they are still doing a periodic SP,  have you received any prequals?


USAA does NOT offer Overdraft Lines of Credit. You can use a Checking, Savings or Credit Card for that purpose however.

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Message 6 of 13
Contributor

Re: USAA Debt Forgiveness


@Overmedicated wrote:


You may still have the flag because I'm not sure I would classify a checking account as a loan or credit.  Do you have any overdraft protection on it?  I'm not familiar with the checking options so I don't know.  Maybe with overdraft protection, I could imagine it might be considered credit.  Since they are still doing a periodic SP,  have you received any prequals?


I don't think so because previously they told me "the bank" had a block on me getting financial products and previous checking apps were declined.

Message 7 of 13
Established Contributor

Re: USAA Debt Forgiveness


@vV35Hszm wrote:

After 2.5 hours on the phone with a half dozen people at USAA today I got some information I have long sought.

 

If you default on debt with USAA there's a flag on your account that you can't open any kind of credit or loan.  According to multiple reps I spoke with that flag falls off after 99 months even if you never pay the debt.

 

I live in California, where a collection is time-barred after three years.

 

After seven years it falls off your credit report.

 

After 99 months, USAA for all intents and purposes forgives the debt.

 

I've marked my calendar for 12/22.  Hope this helps!


This might actually be true.

I defaulted on a  USAA CC approximately 8-9 years ago ( right in the 99 month range)

Tonight I received a prescreen 'offer' on their website to apply for the USAA Amex and was instantly approved.

 

 

Jax

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Message 8 of 13
Valued Contributor

Re: USAA Debt Forgiveness


@vV35Hszm wrote:

@Medic981 wrote:

@vV35Hszm
I burned USAA and had a $4000 charge off on a CC in 2016 for a derogatory from 2009. Even though the SOL is long over I am still curious as to the reception I would get if I tried to reestablish a relationship with them. I am still being stalked by them with a soft inquiry on my CR about every 6 months. 

Might be too soon... in my case I can't get any banking products with them yet BUT they let me get insurance, which is frankly, the best part of USAA anyway.  Try insurance first


 My car insurance policy is going to expire tomorrow. I am going to call USAA and see if I am still eligible for insurance with them. I will post the result after I speak with USAA.



















Your FICO credit scores are not just numbers, it’s a skill.

Message 9 of 13
Valued Contributor

Re: USAA Debt Forgiveness

Here is an update to my post yesterday.

 

I am back in with USAA. I called and was able to get auto insurance with USAA at about a $450 a year savings over my current provider. I was not able to obtain renter's insurance due to my account being flagged. I was informed that I needed to speak with "banking" which was code for the "charge offs" department.

 

As my pulse quickened and my mind filled with dread, I stayed on the phone while I was transferred to the "banking" department. This is a conversation that I never wanted to have but decided I need to but my big boy pants on and do it.

 

Spoke with James, who looked at my account, said everything was zeroed out however the flag was never removed. James told me I am good to go, USAA has forgiven my past transgressions and I may go forth and credit sin no more. He advised me to wait 24-48 hours for the flag to be removed and I should be able to apply for financial products. 

 

What a relief. I will wait until Monday and call about the renter's insurance. 

 

I am curious as to when I do apply for a credit card what my SL might be? I am in the garden so as for now I will just have to wonder. It is nice knowing that USAA has forgiven me and they are now another option in my financial arsenal. 

 

 

 



















Your FICO credit scores are not just numbers, it’s a skill.

Message 10 of 13
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