An Open Letter to the USAA CEO Regarding USAA Secured Card Graduation

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Limitless Contributor
Since 2014 I have been trying to get USAA to address this issue, with no positive solution.

You see, I needed the secured card to raise my credit score, which it did. When I applied for the secured card, there was no, and I repeat no disclaimer that this card would never graduate to a unsecured, like 99.9% of all the other secured cards available to consumers.

I raised my credit score, with the help of the secured card and eventually was able to purchase my first home.  At that tIme I began to petition USAA to unsecure this card as I had trapped money in the CD and could have used that money for my down payment on my house.

When my inquiry fell on deaf ears, I eventually gave up, and applied for a preferred cash back visa, which I got with a 35k limit.  Since getting this card I have not used my secured card in 4 years.

Now that I don't need the secured card I would like to get the capital I have back that's trapped in the CD to help my family.  To do that, I would have to close the secured card, and in doing so close one of my oldest credit lines on my credit report. 

The way FICO scoring works, is if I close my card with the longest history (which this), my credit score will be negatively impacted, thus effectively making the secured card that was supposed to "help me" and help raise my score now hurt me and do the exact opposite by lowering my score. 

I have spoken to many USAA reps over the years, even **** *****, from the CEO's office, and every single time, I get the usual "thanks for your concerns" runaround.

There are a whole class of secured card members and USAA member, some of whom have put their life on the line for our country,  that are being negatively affected and we would like USAA to please address this issue and allow for the current card holders, who have excellent credit to finally graduate.

I look forward to hearing a response from you.

9 REPLIES

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@MarkMM, we appreciate this feedback. Regrettably, this type of account does not have the option to be graduated to an unsecured card. I understand how important this is for you. Since we are not licensed credit advisers, I would recommend reaching out to one of the credit agencies to learn more of the impact of this card. Again, we thank you for taking the time to share with us and will have this feedback submitted to the appropriate area for further review and consideration for the future.  ~Tom

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Tom, Thanks for that "canned" response. I know you can't say any more than that, and I wouldn't expect you to be able to. What I would like is for USAA to do the right thing for hundreds of members that are being negatively affected by this. I would appreciate follow up from the CEO's office since I have spoken to them before and they had indicated that they are in the process of redesigning the Secured Card and would like USAA to listen to their members and finally fix this problem!!
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USAA any new response would be appreciated instead of your canned responses!!!
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I appreciate the follow up, @MarkMM - There's no updates on the secured card process that I can provide you. As soon as it's available, we'll post it the option online. - Cathleen

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I'll throw my hat into this ring as well. I am in the same boat. I do not wish to lose the credit history associated with this card, would like to access the CD funds that have been sitting there for 7 years now, and would like to stop paying an annual fee for the secured account. The CD has only made 34$ over the last 7 years, which is less than the annual fee for 1 year. 

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USAA, I have tried unsuccessfully to get a response. I have posted over and over again, I have left countless voicemails with Albert in the CEO's office who was tasked with helping me on this issue. I have sent emails. NO RESPONSE. What do the members have to do get our concerns addressed??? Do I need to hire an attorney? A lobbyist? Do I need to make an appointment with the CEO?? Just tell me and I will do it. The members need to have our VOICES HEARD!!
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@USAA got anything to say????
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USAA??? I called and email again today, no response! Is anyone HOME???
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