USAA Scores High Ratings with Customers

Consumer Reports National Research Center did a study of credit card companies to determine which ones provide consumers with the best experiences. They interviewed more than 36,000 people about more than 61,000 credit cards. The winner across all of their studies was USAA Federal Savings.

USAA, which issues both the American Express and Mastercard brands, is a credit union for military, retired military personnel, and their families. The company earned a medium 95 out of a 100 possible points from consumers. USAA typically offers interest rates between 9 and 11 percent, which is significantly lower than the 17%+ interest rates charged by many of its competitors.

While the USAA card is limited to members of the military, there are a number of very good credit unions that are open to anyone. Credit unions tend to have lower interest rates and better customer relationships.

"Credit unions are run by members, so they have a vested interest in providing credit at very low rates," says George Overstreet, a University of Virginia finance professor who studies credit union operations. "And they are more focused on keeping their members happy, while banks have to worry more about keeping their investors happy." [Money @ Aol.com]

Credit unions such as 1st Advantage Credit Union and Financial Center Federal Credit Union were rated at the top of the Top 100 CU.com list.

What has your experience been with USAA?

Do you prefer working with Credit Unions or Banks?