How is it that USAA is such a good bank? Is it because of their special relationship with the US military?
- RachaelLv 61 decade agoFavorite Answer
Yes. USAA is able to give loans to military personnel with virtually no risk. The military requires that you pay your bills. Since USAA is affiliated with the military, they can actually pursue payment via a defaulting account holder's military chain of command. You agree to this condition when you sign for your loan. That means you can get in trouble at work for not paying your bills at home. That's incentive enough for most military to pay their bills on time.
On top of that, USAA has a "captive audience" of active and retired military who have little to no risk of losing their income. So they're practically guaranteed timely payoff. It's a great deal for both USAA and their customers as they can offer incentives that few other banks can afford.
- 1 decade ago