USAA Secured Credit Card - American Express vs MasterCard vs Visa Review

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For those of you are not very familiar with USAA, they are one of the larger financial institution and have been around since 1922. They serve primarily members of the military and their immediate family. You can open bank accounts, get insurance from them. And they also issue credit cards. In this review, we will be looking at their secured credit cards.

One of the interesting features of cards from USAA is that each card comes in three versions - an American Express, a MasterCard and a Visa version. Although there are three versions, their key features remain the same. Let us take have a look in closer detail.

Details: Fees, Rates and Deposits

Annual Fee : The Annual Fee for this card is $35. This is a tad on the high side for a secured card.

APR : The APR is 9.90%. This is a very good rate and very rare for a secured card. Having said that, we do not recommend anyone carrying a balance (especially when you are building or rebuilding your credit).

Cash Advance APR

Penalty APR : There is no penalty fee or APR for this card (Yay).

Foreign Transaction Fee : 1% (This is on the low side as most cards have a 3% foreign transaction fee).

Deposit Details : You can deposit anywhere from $250 to $5,000 to start your account. Your deposit will be invested in a CD for 2 years. The rate is variable so you can increase your deposit any time. The credit limit you are given is based on your deposit amount.

FAQs and Other Fine Prints

Now that we have got the details out of the way, let us look at some of the more commonly asked questions about this card.

Does the card convert to an unsecured card after a certain period?
No. The card does not automatically convert to an unsecured card (unlike some secured cards). You would have to apply for an unsecured credit separately (either one from USAA or another card from a different issuer).

Does this card report as secured or unsecured in your credit report?
According to readers feedback and from forums about the web, this card reports as a regular unsecured card.

Special Military Benefits

If you are a current military member, you will actually get the following additional benefits.

1. Active members on deployment or have a PCS (permanent change of station) orders are eligible for your APR to be reduced to 4%. This will apply to current balance, new purchases and cash advances of up to 12 months when USAA is informed of your current or future deployments or PCS.

2. Active members under the SCRA Act (Service Members Civil Relief Act - which includes reservists and National Guard on active duty) will also get 4% APR on pre-existing credit card debt.

3. Active members will also get their finance charges back in rebate if they are serving under a qualified military campaign.

American Express, MasterCard and Visa Benefits

Depending on which version you get, you will certain certain benefits (which are pretty standard) from the different networks. These include car rental insurance, ID theft resolution and fraud expense, extended warranty, price protection, travel accident insurance, lost baggage insurance.

There are subtle differences among the three different networks. For example, Amex car rental insurance is good for 31 consecutive days versus 15 days for both Visa and MasterCard. Amex also provides a concierge service whereas the other two do not.

Peer Comparison

Most secured credit cards are quite similar in their features like annual fees and rates. They do not really differ too far from one another. Hence, if we were to do a full blown peer comparison, we'd be having a long list to compare with. However, since this card is only available to military members or their family, it is best to compare this with other military cards. The one that sticks out the most and comes to mind is the nReward Navy Federal Secured Card.

Like the USAA card, the Navy Federal is only available to military members. They have a secured credit card that comes with no annual fee (yes, one of the rare secured cards indeed). The card also has a reward program and you can also earn reward points through their online shopping mall. Like USAA, they also report as unsecured card to the credit bureaus.

While these features appear to be better, the USAA has the special benefits for active military members on military campaigns, deployment or PCS if they carry a balance.

Verdict and Opinion

The USAA secured credit cards are ideal for military members and family members to build or rebuild their credit. It is a great starter card if you are looking to establish your credit and also a great one if you are looking to rebuild as well. Over time, timely payments will smooth your path to one of USAA's unsecured rewards card. The strong points of this card is their potentially low interest rate and the fact that they report as unsecured in your credit reports. Their customer service is also highly regarded by many consumers.

This card is even better if you are an active military member and if you carry a balance occasionally. That is because you can get a 4% rate if you are on deployment, PCS and on a military campaign.

Where would we rank this card? Well, this is definitely a top 3 card in our secured credit card list.

USAA Secured Credit Cards Review