This has been a repeat problem for me and I assume for other USAA customers who wish to manage their own financial matters. 

 USAA credit card services does not allow us to pay extra on our credit card bills. We can only pay the minimum amount or the actual amount of the statement balance. That particular misquided corporate policy goes against standard procedures for most financial institutions. As an example, we can do a principal only payment on a mortage. We can pay a couple extra payments on a car loan. We are able to pay ahead on any loan.  Other credit card competing companies allow this practice. But USAA does not allow us to pay extra on credit card statement due amounts.  I am wondering why USAA is going against standard procedures in the industry? 

 

I have talked with several reps at USAA about this insane policy. None of them have given me a logical reason for this procedure.  Some have the misquided notion that it is tied to credit limit. Others have told me that it is an issue with accounting procedures. 

 

As a result of this lack of being able to manage my own financial matters, I have reduced my USAA credit card purchases from near five figures a year to a tenth of that. Corrporate Management you need to know this. At some point in the near future you need to get with the standard industry process or I will be cutting my card in half and returning it to you. There are several competitors who cater to the miliarty clients. May I suggest that you need me more than we need you.

 

 

7 REPLIES

@Skyhook, thank you for taking the time to share your concerns with us regarding your credit card account. I regret to hear you have not received a satisfactory explanation to your inquiry. Your concerns about being able to manage your account are important to us and will be shared with the appropriate team for further review. Thank you. - Rhonda 

You kind of have me puzzled here as to why you would want to do this and I don't know of any CC account that allows it.

 

If you have a personal loan with a  $5,000.00 balance, you owe that amount, reduced by payments you've already made..  You can pay any amount between the monthly payment due and the full balance still owed.  Some banks will charge some sort of fee for early payoffs, but not all.  But you can't pay more than that $5,000.00

 

If you have a CC with a $5,000.00 credit limit, but have only made $1,000.00 in purchases, you only owe that $1,000.00 and you can pay anything between the monthly minimu due and the full balance owed.   There would be no reason to pay more than that $1,000.00 or whatever the full balance due is since you don't owe that amount.  You wouldn't gain anything by doing so since they wouldn't pay you interest on a credit/positive balance.

 

Keep an interest bearing checking account with enough to pay all of your monthly bills and use automatic payments to pay the balance in full each month.

 

I don't have a CC here, so I don't know what the rewards programs are, if any, but I've made quite a bit of money in rewards on CCs with other banks by paying in full each month.

 

If you make a $500.00 purchase, there is nothing stopping you from making a $500.00 payment any time between the purchase date and the statement date as far as I know, so you could 'pay ahead' that way.

 

I just don't see any reason to (or advantage in) paying more than the amount you currently owe.

 

 

 

One reason to pay over the total balance due is to cover pending charges, simply so you don't have to repeat what are becoming increasing annoying on-line interactions. For example, to "authenticate" a sign-in, USAA requires you receive and enter a validation code (something I think they partly do for CYA legal reasons)- which is fine for many people, but we live in a largely dead cell phone area and it can take hours to receive a the code. It's not a big deal, but I appreciate what this guy is saying. I pretty much never use a USAA credit card anymore after USAA deteriorated, switching to a local bank and an AMEX card. The former has 1.5% cash back and the latter allows me to overpay. We also established a non-interest checking account at the local bank, and I don't miss the several pennies a month we used to receive from our "interest" bearing USAA checking account, or savings account for that matter- I think their rate is something like 0.03%. We moved the bulk of our savings to Ally Bank with a return of 0.5%- 16-17 times more than USAA!

I'm with Inquiring_Inquisitor: if you pay off your your monthly statement and then have no remaining balance (that would go over to the next month's bill), why would you pay more? I pay off our monthly statement balances every month, and I don't recall if I have paid more than the actual statement balance that would cover some of what would be on the next monthly statement. However, I have returned the next day after my full payment and made another payment to prevent a purchase from going to the next monthly statement. So my question to you, Skyhook, is: at the time of your monthly statement payment, do you have a balance on your credit card that will be reflected on the following monthly statement but USAA is not allowing you to add to the present monthly statement to cover some of that? You didn't give us that information. With my next payment coming up in a few days, I will test the system to see if I can add to my montly statement payoff amount amount.

This doesn't make any sense, even after reading rationale.   I actually make money every month using my USAA credit cards; haven't paid any interest or fees for years.   By paying the balance (even just the minimum required) before the cutoff date, you incur zero interest due to USAA.   The cash back for purchases adds up over the year: I "make" about $100+/per month just on cash back (I pay all my recurring bills with my credit card so I'm not bothered beng billed or having to mail in checks).  If you make purchases through Membershop, you receive additional cash back based on the company you purchase from.   That alone can add up on large, expensive purchases!   As for living in a dead/injured phone and internet area, you don't get much worse than the Ozarks.   Two soup cans and a piece of string is often better than we find down here in banjoland.   I actually did what you wrote about years ago...I paid in more than my credit card bill required as I moved around on TDY after I rerurned from Germany.   Aas I received intermittent TDY payments, the Army force-issued large sums...I might double or triple the card due amount in case I didn't receive a bill in the mail.   Don't recall the card or if it was with USAA, but hopscotching around multiple states, in the days predating computers, made it tough to stay current on bills.   But that was about 250 years ago, when snail mail was the only way to get bills.   Today, you have better options, and you'd waste money paying forward like that.   I pay my credit card bills eveey morning over breakfast....my balance might be a few hundred, or a few thusands, but every afternoon my balance is zero.   The only time there's a problem is if we're in some place like Florida, Georgia, Arizona, and some others  where phone and internet don't work without driving around to find a place where either/both work.  [and happy to say, we won't be going to deadpool Florida and the crazy rest on this list again!].    So just pay your bill, even if you must drive 20 miles for a phone/internet connection...and stop trying to give USAA's credit card section free money.   

Hello @oldesoldier, thanks for taking the time to post. I will pass along your feedback to the appropriate area. ~Sarah 

Um, Sarah. Did you read @oldesoldier post? He is not having a problem, so why does his post require further review? Unfortuntately, this makes me think that maybe you all don't really read the posts. You should be addressing the original poster.