Is obtaining a USAA credit card a walk in the park, or is it an uphill climb? Many people wonder about the ease of securing a credit card from USAA, a financial institution renowned for its dedication to military members and their families. The truth is, while USAA offers a range of credit cards with competitive benefits, the difficulty of getting approved largely depends on your individual financial profile and, crucially, your eligibility for USAA membership itself.
Let's break down the journey to getting a USAA credit card, step by step, so you can navigate the process with confidence.
Step 1: Are You Eligible for USAA Membership? (The Absolute First Hurdle!)
Before you even think about applying for a USAA credit card, you need to determine if you're eligible to join USAA. This is the most critical initial step, as USAA is not open to the general public. If you don't meet their membership requirements, the "difficulty" of getting a credit card becomes irrelevant.
Who is eligible for USAA membership?
- Current and Former U.S. Military Members: This includes active duty, retired, and honorably separated veterans.
- Eligible Family Members: Spouses, widows, widowers, and unremarried former spouses of USAA members. Also, children and even grandchildren of USAA members may be eligible.
- Cadets and Midshipmen: Those at U.S. service academies, in advanced ROTC, or on ROTC scholarship, and officer candidates within 24 months of commissioning.
Don't assume you're not eligible! Many people are surprised to find they qualify through a parent or grandparent's military service. It's always worth checking.
How to Check Your Eligibility:
- Visit the USAA website (USAA.com) and look for the "Join USAA" or "Membership Eligibility" section.
- You'll likely need to provide some basic information to confirm your connection to the military community.
Step 2: Understanding Your Credit Health
Once you've confirmed your USAA membership eligibility, the next significant factor determining how "hard" it is to get a USAA credit card is your creditworthiness. Like all lenders, USAA will assess your financial responsibility through your credit report and credit score.
Sub-heading: What Credit Score Do You Need?
USAA offers a variety of credit cards, and the required credit score can vary depending on the specific card. Generally, for their more rewarding or lower APR cards, you'll need a good to excellent credit score. This typically means a FICO score of 670 or higher.
- For instance, data suggests the average credit score for those who've matched with the USAA Preferred Cash Rewards Credit Card or similar cards is around 687, with 813 being a common score. This indicates that while "good" credit is a strong starting point, "excellent" credit can significantly improve your approval odds and potentially secure better terms.
However, USAA also offers options for those with fair credit or those looking to build or rebuild credit, such as secured credit cards.
Sub-heading: Key Factors in Your Credit Profile:
Lenders, including USAA, look at several aspects of your credit history:
- Payment History (35% of your FICO score): Do you pay your bills on time, every time? Late payments are a major red flag.
- Amounts Owed (30% of your FICO score): This refers to your credit utilization – how much of your available credit you're using. Keeping this percentage low (ideally below 30%) is crucial.
- Length of Credit History (15% of your FICO score): A longer history of responsible credit use is generally seen favorably.
- New Credit (10% of your FICO score): Too many recent credit applications can make you appear risky.
- Credit Mix (10% of your FICO score): Having a variety of credit accounts (e.g., credit cards, auto loans, mortgages) shows you can manage different types of debt responsibly.
Step 3: Choosing the Right USAA Credit Card for You
USAA offers a diverse portfolio of credit cards, each designed with different benefits and for varying credit profiles. Selecting the card that aligns with your financial goals and credit standing is important. Applying for a card that's too far out of reach for your current credit profile can lead to a denial.
Sub-heading: Types of USAA Credit Cards:
- Cash Back Credit Cards: For everyday spending, offering a percentage back on purchases.
- Rewards Points Credit Cards: Earn points redeemable for travel, merchandise, or gift cards. Some offer accelerated points on specific categories like travel, dining, or groceries.
- Low-Rate Credit Cards: Ideal if you tend to carry a balance and want to minimize interest charges.
- Secured Credit Cards: These require a security deposit and are designed for those with limited or poor credit to build their history.
Carefully review the benefits, APRs, annual fees, and recommended credit scores for each card on the USAA website. This due diligence will help you determine the "hardest" cards to get (those requiring excellent credit) versus those that are more accessible.
Step 4: The Application Process: What to Expect
Once you've identified the USAA credit card you wish to apply for, the application process itself is fairly straightforward, typically done online.
Sub-heading: Information You'll Need:
Be prepared to provide the following information during your application:
- Full name and date of birth
- Social Security Number
- Country of citizenship
- Contact information (address, phone, email)
- Employment status
- Annual income (including non-taxable income)
- Housing expenses (mortgage or rent)
- Bank account information
Sub-heading: The "Hard Inquiry" and What It Means:
When you submit a credit card application, the lender performs a "hard inquiry" on your credit report. This temporarily lowers your credit score by a few points and remains on your report for up to two years. While a single hard inquiry isn't a major issue, multiple hard inquiries in a short period can be detrimental and signal to lenders that you might be desperate for credit.
Step 5: After You Apply: What Happens Next?
After submitting your application, you'll typically receive an instant decision, or USAA may need to review your application further.
Sub-heading: Instant Approval vs. Further Review:
- Instant Approval: If your application meets all the criteria, you might receive an immediate approval with your credit limit.
- Further Review: In some cases, USAA may need additional time to verify information or request more details. This doesn't necessarily mean a denial; it simply means they need to dig a bit deeper.
- Denial: If your application is denied, USAA is required to send you an adverse action notice, explaining the reasons for the denial. This is valuable information that can help you understand what areas of your financial profile need improvement.
If denied, don't reapply immediately! Take time to address the reasons for the denial before trying again.
The Bottom Line: How Hard Is It?
Getting a USAA credit card isn't inherently "hard" if you meet the two primary requirements:
- USAA Membership Eligibility: This is non-negotiable. If you don't qualify for membership, you can't get a USAA credit card.
- Good Creditworthiness: While USAA offers options for various credit tiers, having a good to excellent credit score significantly increases your approval odds and access to their best card products. If your credit is fair or poor, it will be harder, but not impossible, especially with a secured card.
Ultimately, by understanding the eligibility criteria, knowing your credit health, and choosing the right card, you can significantly ease the process of obtaining a USAA credit card.
Frequently Asked Questions (FAQ)
Here are 10 related FAQ questions about getting a USAA credit card, with quick answers:
How to Check USAA Membership Eligibility? You can check your eligibility by visiting USAA.com and navigating to their "Join USAA" or "Membership Eligibility" section. You'll enter details about your military connection (or that of your family member) to confirm.
How to Improve My Credit Score for a USAA Credit Card? To improve your credit score, focus on paying all your bills on time, keeping your credit utilization low (under 30%), avoiding opening too many new credit accounts at once, and maintaining a diverse credit mix.
How to Choose the Best USAA Credit Card for Me? Consider your spending habits (cash back vs. rewards points), whether you carry a balance (low APR), and your credit score. Review the features, benefits, fees, and recommended credit scores for each card on USAA's website.
How to Apply for a USAA Credit Card? Once logged into your USAA account (or after confirming membership eligibility), you can apply online through the USAA website or mobile app by selecting the credit card you're interested in and filling out the application form.
How to Get a USAA Credit Card with Bad Credit? If you have bad credit, consider applying for the USAA Secured Card. This card requires a security deposit and can help you build or rebuild your credit history through responsible use.
How to Find Out My Credit Score Before Applying? You can obtain a free copy of your credit report from AnnualCreditReport.com once every 12 months. Many credit card companies and banks also offer free credit score access to their customers.
How to Handle a USAA Credit Card Application Denial? If denied, USAA will send you a letter explaining the reasons. Review this letter carefully, address the underlying issues (e.g., high debt, late payments), and wait a few months before reapplying.
How to Contact USAA for Credit Card Assistance? You can contact USAA by phone (their general banking/credit card number is typically available on their website) or through their secure messaging system within your online account.
How to Use a USAA Credit Card Responsibly? Always pay your balance in full and on time each month to avoid interest charges and build positive credit history. Keep your credit utilization low, and only charge what you can afford to repay.
How to Activate a New USAA Credit Card? You can usually activate your new USAA credit card online through your USAA account, via the USAA mobile app, or by calling the activation number provided on the card or in the accompanying paperwork.
