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Thread: Predicting the Downfall of USAA

  1. #1
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    Arrow Predicting the Downfall of USAA

    It seems like many people I know are fleeing USAA, with both banking and insurance. Several years ago I wouldn't have thought about going anywhere else, but the last 4 years or so it seems they have gotten less and less competitive.

    I recently closed out a credit card I had with them and their only tactic really to try to keep me was fear/scare tactics.

    First, the regular representative couldn't help me close the account. I had to be transferred to a "specialist." He tried to run my credit to attempt to lower my rate but I told him they had their chance. He then was all like you are going to hurt your credit score by closing the account... It took like 15 mins to shut him up and just close the account. Maybe it's just me but if I really wanted to keep someone's business, I would lower the rate without all the BS especially when the customer has a much lower rate card and has the histoy with it to maintain the credit score.

    See, I have been setting up this closure for a couple years. I got the lower rate card with a Credit Union sometime ago. I tried over that course of time to get USAA to lower the rate but they wouldn't. Plus the CU card is fixed and USAA is or was variable. I knew closing an account with long history will have a slight impact on the credit score. That's why I kept it open...while I established the history with the CU card.

    Darn, I cannot use Deposit@Mobile anymore... If you don't know you have to have a loan or CC with them to use that service.

    While I haven't found cheaper insurance YET, I know many people have with other major carriers.. And the quotes I keep getting have been better and better over the last few years...it's down to like a $50 difference over 6 months.

    That check they give every year use to be substantial too...the last few years I have only been getting back pocket change.

    Oh yeah, almost forgot...no personal experience, but NEVER have heard a good word about their mortgages.

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    Default Re: Predicting the Downfall of USAA

    I have my renters insurance through them and they kept hounding me about car insurance. I finally let them give me a quote and it couldn't match GEICO. The only reason I keep the renters insurance with them is because I'm a lazy person and it doesn't cost that much.

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    Default Re: Predicting the Downfall of USAA

    Quote Originally Posted by VFFSSGT View Post
    It seems like many people I know are fleeing USAA, with both banking and insurance. Several years ago I wouldn't have thought about going anywhere else, but the last 4 years or so it seems they have gotten less and less competitive.

    I recently closed out a credit card I had with them and their only tactic really to try to keep me was fear/scare tactics.

    First, the regular representative couldn't help me close the account. I had to be transferred to a "specialist." He tried to run my credit to attempt to lower my rate but I told him they had their chance. He then was all like you are going to hurt your credit score by closing the account... It took like 15 mins to shut him up and just close the account. Maybe it's just me but if I really wanted to keep someone's business, I would lower the rate without all the BS especially when the customer has a much lower rate card and has the histoy with it to maintain the credit score.

    See, I have been setting up this closure for a couple years. I got the lower rate card with a Credit Union sometime ago. I tried over that course of time to get USAA to lower the rate but they wouldn't. Plus the CU card is fixed and USAA is or was variable. I knew closing an account with long history will have a slight impact on the credit score. That's why I kept it open...while I established the history with the CU card.

    Darn, I cannot use Deposit@Mobile anymore... If you don't know you have to have a loan or CC with them to use that service.

    While I haven't found cheaper insurance YET, I know many people have with other major carriers.. And the quotes I keep getting have been better and better over the last few years...it's down to like a $50 difference over 6 months.

    That check they give every year use to be substantial too...the last few years I have only been getting back pocket change.

    Oh yeah, almost forgot...no personal experience, but NEVER have heard a good word about their mortgages.
    VFFSSGT,

    I don't blame you for dumping USAA. However, their representative was correct about closing the account and the impact on your credit rating. I recently paidoff two credit cards and closed the accounts instead of keeping them open in a "frozen" status. The credit hit comes when a creditor runs your credit after you close your accounts. They can no longer see the payment histories on the accounts you closed so you lose credit "history". The amount of impact is negligible if you already have other accounts open, especially if they are open longer than your closed accounts. My credit rating went from 805 to 750 so it really did not affect anything on the recent loans I was approved for. Another issue is any account that you close that have a negative history such as bounced checks, late or missed payments will show up on your credit history even though the account is closed.

    You won't see the impact on your credit rating for at least another 3 months.

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    Default Re: Predicting the Downfall of USAA

    Banking and finance is such a personal choice that it's hard to say why people leave one bank (or insurer) for another. What rates you get (and who is competitive) depends on the individual circumstances.

    For myself, I've found USAA to offer the best rates on auto/home insurance with the coverages I carry. Life insurance, they couldn't even come close to the VGLI rates. I can't say I'm thrilled at their loan/credit card rates, but I haven't found substantially lower rates anywhere else. The representatives are helpful and don't give me the "hard sell" on their other products. As a mortgage servicer, they are spot on, at least from my experience.

    But like I said, financial institutions are a rather personal experience. Your mileage my vary.

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    Default Re: Predicting the Downfall of USAA

    Not a fan of USAA. They've had my car insurance for twenty years, I paid off two car loan with them, I had six figures in an investment fund before I liquidated it, and I have a credit card with them.

    Went to them for a mortgage on some land after more than ten years as a customer. They weren't competitive.

    Went to them for another mortgage for a property, after I had paid off the first mortgage on the land, they still weren't even close to competitive despite having great credit and a paid off mortgage on the land, and two paid off car loans with them.

    Went to them for rental insurance for the house after I bought it, but they wouldn't cover it because I rented out to four individuals for the four rooms, who stayed on average only 5 months each.

    Went to them for a third mortgage after the other two were paid off, same story. I think it's good that banks don't just hand out mortgages to anybody, but in their case I think it's less a risk decision and more a calculation they can make money off military folks who trust them by offering higher rates that many will take.

    Went to them to add to my car insurance coverage for 30K worth of bullet proof glass. They couldn't cover that modification (they limit coverage to something like 5K in mods), despite me being of course willing to pay a higher premium. Not to mention the glass and mods make my car much less likely to be stolen than other cars, which helps their risk for the basic auto coverage. But no dice. I could buy a super expensive car and they'd cover that, but having a normal car with great security mods was just too much.

    One time I tried to pay off the balance of my credit card (almost 20K), and it went through. Then I took a look at the website and it didn't register the payment, so I wasn't sure it went through because it wasn't reflected. So I tried paying off the balance again an hour later. Then it showed two payments of nearly 20K, which was more money than I had in my checking account with my other bank. So I immediately contacted them and asked them to cancel the second payment, which was only made because their website didn't reflect me paying off the balance, and so I thought it hadn't gone through. Turns out their website is a bit like playing Super Mario Brothers if you want to find all the info, it's hidden in various places. Had I hit up, down, up, down, B, A, start, I would have seen the original charge on there (instead of the main area that shows payments). Despite immediately contacting them and several more times, they could NOT stop the second balance payment from going through, which resulted in bouncing my other bank's checking out several days later.

    Not a fan of USAA. Not a fan of any bank actually. I think the credit union is the way to go, and I'll be moving to one before long.
    Last edited by PickYourBattles; 06-09-2012 at 04:07 PM.

  6. #6
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    Default Re: Predicting the Downfall of USAA

    Just getting to big for their pants. They used to be a small decent banking organization, but now they're no different than anybody else.

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    Default Re: Predicting the Downfall of USAA

    I use USAA for home and auto insurance only and I'm satisfied with their service. I knew an insurance man when he found out I had USAA for my car he said they're probably the best company in the business because if you have a claim with them they don't hassle with you on your claim they just pay it. I totaled my car on the way to the SNCO Academy and everything was taken care of them over the phone while I was at there. In the end, they paid me more than what I paid for the car (used) as well as taking care of the towing/storage fees over a 3-day weekend.

    As for a credit card, I don't have one with them because I've had one for decades with my local credit union and I don't want to lose that credit history. Also, since I pay off the balance monthly the interest rate isn't a concern.

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    Default Re: Predicting the Downfall of USAA

    They screwed me on one of my IRAs . I opened 2 at the same time and deposited $4k into both. Next year I put in $4k in both of them. Couple years later The market crashed and I was losing more in them then what I was making a month. I went to get my money out of them and they said one was a Roth the other was a traditional. I called BS and they said they would "Review the tapes" It came out to about a $1000 difference in penalties. They never "found the tapes" which I said to have them both Roths.
    When I get back to the states Im dropping them. F them.

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    Default Re: Predicting the Downfall of USAA

    The car loans are not competitive what so ever. I got a quote for a new(er) car and they wanted 15 percent interest on the loan. I went through the car dealership and I got 3 percent. It was just outrageous that they even thought 15% would be something I could be interested in.

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    Default Re: Predicting the Downfall of USAA

    Might have to do with the current economic climate. Also, it seems like the criteria to be covered are less strict than they used to be. It seemed like it used to be military and their families. Now its, if your third cousin twice removed served in the war of 1812 then youre good. They are good if you are overseas though.

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