USAA Bank Credit Cards & Home Mortgages Lack Competiveness

I am a retired military officer and I have been a loyal member of USAA Insurance since 1974 and USAA Banking since its conception.  I have experienced the growth and the subsequent changes in USAA's services over the years and I feel that it's time and that it's appropriate to voice my concerns in certain areas of your products and services.


For many years, USAA membership consisted exclusively active and former military officers and all USAA's services were a great value.  I and most of my colleagues questioned when USAA changed course and began accepting the entire military population and their children as to how that would affect the quality and continued value of USAA products and services. Since then, I have watched insurance rates and deductibles (specifically roof wind damage 1%) increase.  As for the quality of claims servicing, I, personally have not had any such experience in many, many years.  I have been told that the rates that the officer pool receives is a better one than, say, junior enlisted members or children and dependents.  I do not know the validity of those claims, but I am interested to know if that is true.  After all, the military officer insured pool would apparently be a lesser risk than the general military public.  This is not the reason for this review.


My current concern is about competitiveness in the banking business versus other commercial businesses in the industry.  For example:


I am a sixty-four year old male retired army officer with a credit score of around 820 and a I applied for a home mortgage a few years ago with USAA.  I was shocked to find the best rate USAA Mortgage Services offered me was a full percentage point higher than those offered at several local banks.  That in itself was unexpected and disappointing. 


Now, I find myself in the market for a new credit card that offers cash back rewards, siince I seldom if ever keep a balance on a card.  In my quest for a new card I find that the best card USAA offers is a 1.5% cash back while other commercial entities offer more generous savings.  Even Samsclub offers 5% cashback on all gasoline purchases, 3% cash back on dining purchases and 1% on everything else.


I'm just saying, I would hope that USAA remembers the loyalty of its longtime members as being contributory to its success and that the company would not forsake the quality, service and value of its products in the future.


Thanks for hearing my concerns.  I would look forward to someone replying or contacting me about this review.




Hi Tom,


Thank you for the feedback here in Community. I have passed this over to a bank team member, and they will be reaching out to you as per your request. Thanks again.