USAA Credit Cards Now Fee Free

[JimGant]

Thanx, LM. I was, indeed, a little confused.

[JimGant]

Applied for and received my USAA Limitless Cashback card. Application didn't allow to apply as a joint account with the wife, just to add her as an authorized user. My other USAA Visa credit card is a joint account, so I asked USAA to convert the Limitless Cashback account to a joint one. Nope. The new policy is to not have new credit card accounts as joint, as "too many problems" (no elaboration). I pushed it up a couple rings, and they relented -- and sent me the application to convert to a joint account.

 

Obviously, while I'm alive, her being just an authorized user has the same practical application as being a joint owner. But when I croak, I assume being a joint owner allows her to continue using the credit card without having to go thru the hoops of closing my account and opening her own. Anyway, that's my assumption.

 

Out of curiosity -- anyone else find opening a joint credit card account -- with any financial institution -- now difficult to do?

[Pib]

Regarding that Limitless credit card which pays 2.5% cashback on every purchase and was initially only being offered to those folks with registered USAA addresses in certain states (20 or so states at last count...and my address was not one of those 20), I did an online chat with USAA tonight and asked the status of the card going nationwide/being offered to all USAA members.  The USAA rep said the Limitless card pilot program was now "inactive." 

 

Nice way of saying they stopped expansion of the program beyond folks in those 20 states or so.  Probably were not making enough profit.  And I bet within a year or two they will roll back the 2.5% cash back to 1.5%.  Time will tell. 

 

Shame....I really wanted to get that card.  Oh well.

 

[Langsuan Man]

On 5/7/2017 at 9:05 AM, JimGant said:

But when I croak, I assume being a joint owner allows her to continue using the credit card without having to go thru the hoops of closing my account and opening her own.

I don't know if this will answer your question but when I wanted to name a "beneficiary" for my USAA account, they would only allow me to name a USAA member.  So USAA has some peculiar policies that may have contributed to your difficulty   

[JimGant]

Interesting. New cards now limited to Louisiana. Apparently something called "manufactured spending" is costing these high reward card issuers money.

https://www.doctorofcredit.com/usaa-limitless-2-5-cashback-now-available-louisiana/

 

Had never heard of manufactured spending. But of course, something like this would naturally occur, if there's an advantage to be cornered with a high rewards card. A new form of arbitrage, I guess.

 

Quote

...it is quite possible to make money while generating a lot of points and spend on your credit cards. This isn’t going to be for everyone, but understanding how it works may be beneficial when you see an arbitrage opportunity too good to pass up.

http://milestomemories.boardingarea.com/retail-arbitrage-manufactured-spend/

 

 

[TallGuyJohninBKK]

6 hours ago, Langsuan Man said:

I don't know if this will answer your question but when I wanted to name a "beneficiary" for my USAA account, they would only allow me to name a USAA member.  So USAA has some peculiar policies that may have contributed to your difficulty   

 

One easy way in the U.S. is to have the bank set up your account as a POD (Payable on Death) account, if they offer that type. Many do, but not all.  With POD, you can name any person as the beneficiary. And then when you die, with proof of death, the funds automatically go to the POD beneficiary without needing to go thru any probate and such.

 

[JimGant]

Quote

And then when you die, with proof of death, the funds automatically go to the POD beneficiary without needing to go thru any probate and such.

I have all my checking, savings, and CD accounts at USAA with POD's. They're also all jointly owned with the wife. However, I don't think  you can have a POD beneficiary on your credit card account -- what 'pay on death' would occur, unless somehow you had a credit balance.... But being a joint account *should* allow for it's continuance in the name of the surviving account holder.

 

Yes, the primary reason for PODs was to avoid probate for these assets. Another reason, serendipity of sorts, was that I was underinsured (FDIC) at USAA, having quite a few resources with them. I wasn't initially aware of this (and miffed at USAA for also not being aware, and therefore not warning me), but somewhere I stumbled on this shortfall. Now, PODs are doing double duty for both probate and FDIC insurance.

https://www.thebalance.com/payable-death-fdic-increase-357241

[Pib]

1 hour ago, JimGant said:

Interesting. New cards now limited to Louisiana. Apparently something called "manufactured spending" is costing these high reward card issuers money.

https://www.doctorofcredit.com/usaa-limitless-2-5-cashback-now-available-louisiana/

 

Had never heard of manufactured spending. But of course, something like this would naturally occur, if there's an advantage to be cornered with a high rewards card. A new form of arbitrage, I guess.

 

I had never heard of manufactured spending...googling a little made me a little smarter on the subject but from that googling manufactured spending could occur on any card whether paying 2.5% cash back or 0.1% cash back.   I expect manufactured spending is not the reason behind USAA greatly rolling back the program/making it inactive according to the USAA rep I chatted with yesterday.  Too bad....I really wanted to get one of those cards because I use my 1.5% cash back card from other companies for as many day to day buys as possible here in Bangkok....that 1.5% adds up to real money after a short while of using such cards to pay for things.

[Langsuan Man]

Regardless whether you call it a Beneficiary or Payable  on Death,  USAA will not allow you to name anyone other than a USAA member or someone eligible to become a USAA member (like a spouse or child )