Jump to content

Is anyone familiar with the USAA World MC?


Recommended Posts

I just got approved for one and I don't quite understand all the terms. I think it might be like an Amex. Here's a snippet of the terms:

"We will tell you the maximum amount that you may revolve from one billing cycle to another. That amount is your "Revolve Line" and may also be referred to as your "Credit Limit" in this Agreement and on your statements. Your World Card Account has no pre-set spending limit. This means that, subject to our approval, you may make Charges that exceed your Revolve Line; provided, however, if the New Balance shown on a statement exceeds the Revolve Line, you must repay any amount over your Revolve Line by the Payment Due Date."

My credit limit is $5,000.00. I was a little surprised that they issued this card to me. Does anyone know more about how this works? I have never had a real Amex (a bank-issued one that works exactly like a regular VISA/MC, but not a classic Amex.)

  • Like 1
Link to comment
Share on other sites

It's just an NPSL card.

Here is a canned description from Chase:

NPSL is a No Preset Spending Limit. The NPSL product does not assign a credit limit to Cardmembers and gives the option to revolve balances. The credit limit is not determined at account approval. Instead a Credit Access Line is assigned. This is the amount a Cardmember has available to revolve Since NPSL accounts are not assigned a credit line, the credit bureaus may not report your access line, which will make the account appear to be an open line of credit versus a revolving credit card. That is why only your high balance amount may report. The amount allowed over the credit access line is reviewed regularly and is based on credit information, account history and personal spending patterns. Since some credit bureaus may choose not to report a line of credit, it may appear that you are exceeding your access line. That is is why it is important to keep a copy of this letter so any potential creditors are aware that this is a NPSL account. You may also ask for a Credit Access Line increase if you are interested.

The benefits of NPSL are you get "World" benefits (MC) or "Signature" benefits (Visa). 24/7 concierge service, higher and better insurance coverage, fraud risk priority, warranty manager, etc.

In addition to that, there is no over limit fee and you are allowed to charge 5-10% over your credit access line before your card will start to decline for being over the limit.

Other than that, there isn't much difference between this product and a Platinum or Basic card.

The downside is: unless you're a large spender, this generally creates FICO scoring problems.

Just google: NPSL credit cards FICO scores

you'll get a bunch of hits...

FWIW, I have a Chase Freedom Plus Visa Signature NPSL Credit Access Line and my wife has a Citi American Airlines AAdvantage World Master Card NPSL Credit Access Line. I have had no problems with either, and I've used most of the additional services that come with them...

The Chase card doesn't report a limit to TU, but does to EQ and EX. The Citi Card doesn't report a limit to EQ, but does to EX and TU. I've tried to get the limits reported to all 3 on each, but to no avail.

Your credit is improving. NPSL products are hard to come by these days.

Link to comment
Share on other sites

Thanks, BWS! I thought you would be the one to come through with this information.

It's about time that my credit improved. While I owe everyone too much money, all I do is pay and pay and pay.... never late that I can remember other than a possibly-bogus 30-day late on an installation loan in summer '06. That's been dogging me for a long time. My BK from 2002 does not seem to be affecting me as much as it has been, and I have two paid tax liens; one is only from 2007. But any lender should really love to have me as a customer because my payment is more reliable than the sun coming up and the interest I pay is attractive (to them), too.

Anyway....

Since my goal is to continue to improve my overall credit, what would be a good "spending pattern" for this card? I mean, I had originally thought I'd park a higher-interest card's balance there, but since it's not a regular MC, maybe I don't want to do that. I would like to baby this card (in fact, all of my USAA cards) and establish/maintain a good relationship with them.

What kind of spending pattern is referred to in the paragraph you copied above, specifically, "The amount allowed over the credit access line is reviewed regularly and is based on credit information, account history and personal spending patterns." What do you think they would they be looking for in order to increase that allowed amount? What kind of spending pattern do you think they consider "favorable"? (Obviously I am in the dark. I have no idea whether infrequent usage is good, or frequent usage, or light use, or big-spend, big-pay usage).

Link to comment
Share on other sites

What kind of spending pattern is referred to in the paragraph you copied above, specifically, "The amount allowed over the credit access line is reviewed regularly and is based on credit information, account history and personal spending patterns." What do you think they would they be looking for in order to increase that allowed amount? What kind of spending pattern do you think they consider "favorable"? (Obviously I am in the dark. I have no idea whether infrequent usage is good, or frequent usage, or light use, or big-spend, big-pay usage).

It's hard to know. Most credit card issuers have a custom built formula called a "behavior score" built into their mainframe software. What actually constitutes a perfect behavior score differs between issuers and even between products of the same issuer.

They all take into account

-amount spent per statement

-times used per statement

-payment amount per statement

-amount of time the card has been open

Typically, the fastest way to achieve a high behavior score is to use the card regularly and PIF after the statement cycles and then repeat.

However, some issuers don't use behavior scores at all and only rely on third party CRA to make these decisions. It's apples and oranges and only an underwriter from USAA would know for certain.

Link to comment
Share on other sites

I just got approved for one and I don't quite understand all the terms. I think it might be like an Amex. Here's a snippet of the terms:

"We will tell you the maximum amount that you may revolve from one billing cycle to another. That amount is your "Revolve Line" and may also be referred to as your "Credit Limit" in this Agreement and on your statements. Your World Card Account has no pre-set spending limit. This means that, subject to our approval, you may make Charges that exceed your Revolve Line; provided, however, if the New Balance shown on a statement exceeds the Revolve Line, you must repay any amount over your Revolve Line by the Payment Due Date."

These terms that you quoted ... were you quoting the terms from some other bank's World Mastercard to help you understand your USAA World Mastercard ?

Or were you quoting the terms that were included with your USAA World Mastercard ?

Here's where I'm confused -- unfortunately so far only a handful of people on other forums have reported having the USAA World Mastercard; none of them reported that their USAA World Mastercard has a "no preset spending limit".

I'm not being argumentative with you. But I'm now wondering if some of the USAA World Mastercards have a "no pre-set spending limit" and some of them don't.

USAA's website isn't of any help because it doesn't have any information that addresses this matter. And based on my conversation this morning with a USAA agent, maybe USAA's agents haven't been well trained on the ins and outs of their World MC -- this agent said their card does not have a "no preset spending limit" and that a customer will have to call in and request a higher credit limit if he wants to spend over his current World MC credit limit.

Link to comment
Share on other sites

That's a good question (and I didn't think you were being argumentative.) :)

I got that from the USAA site. There was a page that said something like, "read and print the terms now because they won't be available when this page expires." I took a glance at them and copied that much. I figured that when the card arrives, it will come with printed terms.

I'll keep you updated when it gets here! That's interesting that people are getting different terms for what appears to be the same card. Thanks for your post.

Link to comment
Share on other sites

Stilltrying,

I got my card in the mail along with the terms. The last paragraph in the terms sheet reads like this (in part):

"If your Account is a USAA MasterCard World Card, then this addendum applies to your account..."

(insert paragraph I already copied in the post above)

It goes on to talk about a cash advance limit, which I'm not really concerned with right now, and then...

Of course it says they if they authorize a charge that goes over the "revolve line," I have to pay it down under the revolve line limit by the payment due date, and also...

They can impose a daily limit or single-transaction limit if they want to. Stuff like that. So yeah, it appears that it really is a no-preset-limit card. I have no plans to use it over the limit, at least not at first, but it's nice to know that the flexibility is there.

*Oh yeah, I wanted to add to what you said: I also talked to a USAA agent on the phone a few days ago and she said the card will be "exactly like my other USAA cards but with better benefits." This was in answer to my question about whether it's a NPSL card. She didn't flat-out say "no," but she didn't confirm it and seemed to be implying that it was not. I got the feeling it's possible she didn't know. The written terms sure seem to say outright that it is a NPSL card.

Link to comment
Share on other sites

Update on the continuing mystery of whether the USAA World Card is a normal Mastercard or one that requires the balance to be paid in full each cycle (with the "option" of revolving)

Can anyone shed any light on this? Bigwoodstyl? Anyone??

OK, I just got the card and put several charges on it and I was planning to pay it as soon as the first statement was generated. I just checked online, and no statement has been generated yet, naturally (it's been less than a week since I started using it, and less than two weeks since receiving it.)

But there is an "amount due" which is the amount I've charged, and it's due June 28th.

*oops, wait. The amount due is the "minimum payment" of $15. The entire amount I charged was $236. (part of that still pending)

No statement yet.

It's not a problem, since I was planning to pay it, but this is curious. I thought since it was just a regular Mastercard, as the CSR at USAA said (though I suspect she was confused or incomplete with that answer), there would be nothing due until a statement is generated, with a due date about 25 days after that, as is customary with my other USAA cards.

???

Link to comment
Share on other sites

Oh, never mind. Sorry I can't delete posts - I feel like a doofus. It's all because the statement did close yesterday: June 3rd. That was the root of my confusion.

But because it's new, I guess, there was no tab to view the statement - it's not viewable yet. I was confused because I saw no statement at all in the usual place - and the account is new so there's no statement for me to see yet and not even a tab to view it. Never mind... carry on!

Link to comment
Share on other sites

They can impose a daily limit or single-transaction limit if they want to. Stuff like that. So yeah, it appears that it really is a no-preset-limit card. I have no plans to use it over the limit, at least not at first, but it's nice to know that the flexibility is there.

I think you're worrying too much about the NPSL aspect. Your credit card statements will still list a nominal credit limit. They call it a "credit access line" or similar, instead of a limit, though.

The NPSL is the wrong part of the card to focus on, as (outside of a few credit reporting issues) the card hardly performs any differently than a regular credit card.

(FWIW, if the card says, "World" on it, then it's NPSL. That's the easiest way to know.)

If, anything, there are two things to focus on.

1. Your credit is improving if you can get one of these cards.

2. The extra benefits, which are totally free btw, are pretty cool if you ever need them.

The NPSL is a gimmick, especially since these cards are generally only offered to very high FICO who normally pay the balance in full and never get anywhere near the "limit", anyway.

Link to comment
Share on other sites

Thanks, BWS. I'm not worried about the NPSL part since, like I said, I have no plans to use it (anytime soon) anyway, if it is a feature of the card, but I was trying to help someone clear up the mystery of whether it is or isn't one. (The previous poster says others have the same "World" card and were told by USAA that it is not a NPSL card. Curious, huh?)

Strangely, while on the phone with USAA the other day again, I asked about that again (asked outright if it is a no-preset-limit-card, and once more got no answer to that question. So it is a little bit of a mystery.

Even though I do have the opportunity to "revolve," I'm going to treat this card like a baby and pay it off each time. I do want to build up good credit with USAA, even if I do owe big balances on the other two cards I have with them. (I hope that part doesn't negate any efforts I make with this card, since they must look at my card management as a whole, and in fact of course they look at my credit report as a whole, also.) But I'll do it anyway because it can't hurt.

This is all because I do appreciate the opportunity to prove myself as much as I can with this improved credit that you speak of... I am really in shock that they'd issue this card to me (given the high balances I mentioned above), which makes me wonder what criteria they use, but I won't question it.

Link to comment
Share on other sites

The other poster (or whoever s/he spoke with at USAA) is confused. All World MasterCard (and all Visa Signature) are NPSL.

World MasterCard from MasterCard.com

I am really in shock that they'd issue this card to me (given the high balances I mentioned above), which makes me wonder what criteria they use, but I won't question it.

LOL, maybe they want you to go over the limit since with the credit card bill of rights, you very soon won't be allowed to go over the limit on a regular credit card. :mrgreen: I kid... I don't know why, but don't question it.

That's probably the card you want to use when buying airline tickets or making a major purchase or renting a car/truck. Despite what others here may say, the benefits are highly useful (and free) if you ever need them.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.