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USAA pre-commission loan rate hike warning

Reconjoe

Active Member
Just wanted to get this info out to everyone who might be interested.

The pre-commissioning loan from USAA is currently at 2.99% API, but it hikes up to 4.99 the first of June. It's good for up to $25,000....I'm personally getting in on it (for less than 25G...my In & Out habit is not that bad yet) but anyone else who was looking for a pre-commissioning loan might want to look into it and apply now to at least lock that rate in.
 

Brett327

Well-Known Member
None
Super Moderator
Contributor
Just wanted to get this info out to everyone who might be interested.

The pre-commissioning loan from USAA is currently at 2.99% API, but it hikes up to 4.99 the first of June. It's good for up to $25,000....I'm personally getting in on it (for less than 25G...my In & Out habit is not that bad yet) but anyone else who was looking for a pre-commissioning loan might want to look into it and apply now to at least lock that rate in.

Just out of curiosity, what does one do with 25K at 5%? Unless you've got a bunch of credit card debt, 5% is higher than lots of other things you might ordinarily get a conventional loan for, such as student loans, car loans, or even most investment opportunities these days. Pray tell.

Brett
 

OccamsRazor

Final Select BDCP Intel
It appears USAA is really going downhill in terms of their service...they're no longer giving loans to BDCP guys, and now they're hiking their rates to the point where it no longer makes any sense to take out the loan. I hope they turn it around, but I no longer have any real reason to do business there.
 

wlawr005

Well-Known Member
pilot
Contributor
when the loan first came out it had a 1.9% APR...it WAS a good deal if you wanted to consolidate some of your debt
 

Reconjoe

Active Member
Just out of curiosity, what does one do with 25K at 5%? Unless you've got a bunch of credit card debt, 5% is higher than lots of other things you might ordinarily get a conventional loan for, such as student loans, car loans, or even most investment opportunities these days. Pray tell.

Brett

i'm simply paying off my credit card debt....6 grand at 2.99% beats 6 grand at 9.49%....
 

DanMa1156

Is it baseball season yet?
pilot
Contributor
check navy fed. they offer a career starter loan, as well.

Was going to say the same thing. They are offering it to us Mids at 1.25% plus you get 1% off the next loan you take out with them in the future. I already took the USAA one when it was $30,000 at 1.49% and I've invested a good portion of it already so I'm sticking with USAA.
 

Ricky Bobby

New Member
Was going to say the same thing. They are offering it to us Mids at 1.25% plus you get 1% off the next loan you take out with them in the future. I already took the USAA one when it was $30,000 at 1.49% and I've invested a good portion of it already so I'm sticking with USAA.

Seriously? Back in November navy fed told me they were not even offering the pre-commmisioning loan anymore so I went with USAA at 2.99%. I got ripped off!!
 

AJB37

Well-Known Member
I can't find any information on the Navy fed loan, I was probably taking out the usaa loan on Monday, but now maybe I'll wait.
 

Picaroon

Helos
pilot
A lot of banks are hurting these days... it's hard to find good deals anywhere right now. Yeah, I don't want the loan at 5% and I heard that BDCP couldn't get it anymore anyways... a shame, but I don't think it's anything unique in the banking world right now to see that happening...
 

torpedo0126

Member
It appears USAA is really going downhill in terms of their service...they're no longer giving loans to BDCP guys, and now they're hiking their rates to the point where it no longer makes any sense to take out the loan. I hope they turn it around, but I no longer have any real reason to do business there.

USAA's service has NOT degraded.

I don't get how this has anything to do with their service? Although the economy is starting to recover, its not like USAA hasn't felt the negative effects. You do know that all the banks that didn't screw up had to pay MILLIONS to the ones that did? There was a good link that explained all of this...

I don't know why they aren't offering the loans to BDCP, but I am sure they have a reason.

Also, their auto insurance is great and their car buying service is also very helpful.

Other than not being able to take out a loan, what problem have you had?
 

Uncle Fester

Robot Pimp
None
Super Moderator
Contributor
I gotta agree with torpedo on this one. USAA's not Navy Relief, it's a business. The amazing rates start to go by the wayside when belts must be tightened. I have no complaints whatsoever about them.

Still, it's not like the loan's bad now. It may not be all that great a deal for a 30-something professional, but how many banks will give out a $25K loan at a reasonable rate with no collateral to a kid fresh out of college?
 

torpedo0126

Member
I gotta agree with torpedo on this one.

You make it sound like its 'regrettable' that you have too? :D


Also, I was thinking. I DON'T know how the BDCP program works, however, what happens to you guys if you flunk out of OCS?

Because the way the USAA loan works is that it HAS to be direct deposit (or whatever its called) and payment must commence within 90 days of something (not sure if its commissioning or some other day).

I could see with the economy and all the criticism loans that it could be quite risky to give someone a loan who doesn't have a guaranteed job yet.

But again, I don't know how the BDCP program works.
 

Flash

SEVAL/ECMO
None
Super Moderator
Contributor
It appears USAA is really going downhill in terms of their service...they're no longer giving loans to BDCP guys....

BDCP is a small and unique program that doesn't quite fit into the 'norm' when it comes to commissioning programs. As Fester has so aptly pointed out, USAA is a business and they stuck it in the OCS category probably to be safe. And torpedo has also pointed out the higher 'risk' with BDCP types. So cool your jets a little, USAA is still a great deal.
 
Was going to say the same thing. They are offering it to us Mids at 1.25% plus you get 1% off the next loan you take out with them in the future. I already took the USAA one when it was $30,000 at 1.49% and I've invested a good portion of it already so I'm sticking with USAA.
My class was originally offered a 25k loan from USAA at about 1.5 or so, as well. NavyFed countered with a 30k loan at 0.75%. Even though I had already invested the 25k, I took out the 30k with NavyFed, paid off the USAA loan, and invested another 5k.

The difference in the rate and the extra 5k made it well worth it (although my current portfolio says otherwise).
 
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