Like a lot of other lucky children of USAA members, one of my very first credit cards came from USAA. I remember the experience so well. I was just about to graduate college in 1994 and my dad helped me apply for a USAA credit card. I was so excited when my brand new blue Visa card came in the mail. The limit was $1,000, the annual percentage rate was about 12.5%, and the minimum payment was $25. I didn't think there was any way in the world I would ever come close to maxing out that limit. Ahh... How innocent I was in my 20s!

I used that card very conservatively for about a year, then went off to Armenia for two years as a Peace Corps Volunteer. Back in the mid 1990s, there were very few places in Armenia where I could use a credit card, so I actually enjoyed a negative balance for a time because I was so good about paying my bill. And then, toward the end of my tour, Armenia got an ATM machine and I started to plan a month long trek through Europe. The card started getting used again. I remember asking my dad to call USAA and get them to raise my limit because I was going to Europe... a very expensive place. USAA very kindly did raise my limit to $2,000.

I used the card a lot on my trip and, for the first time, really started to carry a balance. I was (and still am) right about Europe... it is a very expensive place. I ended up using my USAA credit card to take out cash advances. Surprisingly enough, the transaction fees for those advances were very reasonable. I haven't used my credit card for cash advances since then, aside from the occasional convenience check, but USAA has always been kind about their charges.

Currently, cash advances made with my card carry a 10% annual percentage rate with a 3% transaction fee. The fee does not apply to convenience checks, balance transfers, or funds deposited into a USAA deposit account. The delinquency annual percentage rate is 15.15%. What's more, USAA doesn't charge more for converting foreign currencies. Right now, USAA only charges the conversion fee of 1% that is paid to MasterCard International, Visa U.S.A., Inc., or American Express. USAA itself does not charge for converting foreign currencies into U.S. dollars.

Back from Europe, back to reality... and a BIG balance

After my time in Armenia, I was plunged back into the reality of life in America. Bills had to be paid. I was poor and jobless. My Peace Corps readjustment allowance quickly ran out and my parents were pressuring me to find a new place to live. I used my USAA credit card and kept paying the monthly bill, noticing that if I was very good about paying, sometimes they wouldn't give me a minimum payment due on the balance. I have never skipped a payment on my USAA card, but over the years, USAA has often given me that option, sometimes for several months in a row.

When I finally got to graduate school, I used my USAA credit card as a survival tool while I got established. When I made very big payments, USAA would respond by raising my limit. And I would respond by raising my balance, buying textbooks, and using it to pay for my health insurance, gas, and even groceries. USAA kept their annual percentage rates competitive. Five years after I got my first USAA credit card, the bank sent me a letter telling me that my credit history was good enough that my poor old dad could be released as my co-signer.

USAA Platinum... cash rewards and total rewards

About halfway through my graduate school education, I traded in my USAA Classic Visa for a USAA Platinum MasterCard. I called customer service to make this change and the agent I spoke to offered to make the card pay cash rewards. I would earn cash back on every purchase I made. That sounded good to me, since I was using it a lot to make purchases. I remember her telling me that there was an annual fee of $29, which USAA would waive the first year. I don't know what happened to that fee. I have never been charged it. I have also never really been that impressed with the cash rewards program, which basically amounts to having the reward deducted from my balance every January. I no longer use my credit card that much, so I never really get much of a reward anyway.

Just last week, I made the switch from Cash Rewards to Total Rewards. This time, I used USAA's Web site to make the change, which was very easy to do. The Total Rewards program allows me to earn points for every purchase, which I can then "spend" on gift cards, merchandise, or cash rewards. The only reason I made the switch to Total Rewards is because it allowed me to drop my annual percentage rate to a very competitive 9.15%. According to USAA's Web site, some members can enjoy percentage rates as low as 7%. There's also no annual fee.

Raising the limit... lowering the interest

Since my monthlong trip to Europe eleven years ago, I have only asked to have my limit raised once. It was right after I got married. My husband and I were struggling with bills and I wanted a higher limit. I called USAA's customer service and spoke to a representative. He asked me some questions about my employment status. I answered them, then changed my mind about raising my limit. On my next bill, I noticed that USAA had raised it anyway.

I have never asked to have my interest rate lowered, but USAA has still occasionally lowered it for me. One time, I was talking to a customer service representative and she just offered. I thought that was very helpful.

Convenience checks

I'm ashamed to admit it, but after I got married, my USAA credit card really saw a lot of use, starting with the wedding itself. I used it to buy my wedding dress, pay for renting the dance floor, and various other odds and ends. USAA sent me unsolicited convenience checks, one of which I ended up using to pay for my wedding dress alterations. Normally, I wouldn't want to use convenience checks, but USAA's terms were benevolent. I wasn't even charged extra for using the check. Since then, I haven't needed to use convenience checks, but if I did, I could order them through USAA.com very easily.

Paying off my USAA credit card

Over the past couple of years, I've been working hard to pay down my USAA credit card. My husband and I are finally in a better financial place and we want to get out from under our credit card debts. We've enjoyed watching the balance go down steadily with each large payment we make electronically. USAA has rewarded me by continuing to allow me to pay as much or as little as I want. I haven't had a minimum payment due in a long time. They've also raised my limit to $14,500. I'm happy to say that I'm currently nowhere near that limit, but for awhile, I was flirting with it.

What I like about my USAA credit card...

Over the past fourteen years, I have been very impressed with the excellent customer service I have gotten from USAA Savings Bank. What's more, the bank is concerned about security. A few years ago, I had an identity theft scare. USAA Bank was great about it. They allowed me to set up a phone password which I now use every time I call customer service. Their Web site is also very secure and easy to use. I can easily make payments without having to worry about ridiculous fees.

USAA has also been great about setting reasonable payments. Although I never take advantage of the no minimum payment offers, in the past it has been nice to be able to make smaller payments if I've needed to. And they've also been good about setting reasonable annual percentage rates and fees. I have never gone over my limit or been late with a payment, but I have noticed that USAA is pretty liberal about their charges. Currently, the late payment fee is $29. The grace period for the repayment of purchases is 25 days.

What I don't like about my USAA credit card...

In order to get a USAA credit card, you have to be eligible to use USAA's services. Generally, that means you have to have served in the military, be the spouse or child of someone who served in the military, or be a former spouse. Former military members have until age 35 to become USAA members; those over age 35 have until they retire or separate from the military. But once you become a member, you are a member for life. You can pass your membership privileges to your children, even if they never serve in the military. One thing to know about USAA is that if you ever declare bankruptcy and they are included in the loss, you become ineligible for a credit card with them. I can't blame them for this rule, but it does kind of suck for those who've had money problems beyond their control and are trying to start anew.  ETA: My husband has recently been allowed a second chance with USAA, even though they took a loss when he went through a bankruptcy.  Recently, they offered him a credit card with a $4000 limit, 11% APR, and no annual fee.

Overall

But... aside from owing them too much money, there's not much else I dislike about USAA's credit card program. I have always gotten good customer service and have been treated very fairly. When it comes to using credit, I'm sticking with USAA.

www.usaa.com

Recommended: Yes