Know More about Credit Union Credit Cards

You may be wondering if a credit card union is a right choice for you. When you compare their interest rates to the ones offered by the bank, you may be surprised that they are lower. Some have also commented about the better customer service that they are receiving. However, most of them are not as exclusive as what you may initially think.

Credit unions are member-owned banks that are non-profit and often consist of volunteers. In many prominent financial institutions such as banks, it’s common for them to charge higher fees and interest rates, and they tend to share the profits with the shareholders. When it comes to credit union credit cards, the interests are shared with the members. This is often in the form of lower fees and interests.

Each union consists of a unique community. This is often available for people who live in the same area or work for a specific office. It’s also not hard to find one as they usually welcome new members.

Pros of Getting the Union Cards

Just as you’ll get loans with a traditional financing institution, savings accounts, checking accounts, and more, you will have the same opportunity with the union. These institutions can also work like Mastercard and Visa so that you can use them anywhere, and they are accepted in major networks.

The unions will also report your financial standing to the credit bureau. Read more about this financial cooperative when you click here. This means that you’ll have the chance to build your credit standing. Some of the pros and cons that you should consider are the following:

It’s important to know that unions are non-profit. This is why they have lower fees rather than profit-centered banks.

  • Annual Fees: The annual fees of most banks are going higher than 45%, and on the other hand, the ones in the union can only be up to 10%.
  • Late Payment Fees: You may have been paying an average of 50%, which can amount to $35 for every late payment that you have, but this is not the same with credit unions that are charging only up to $22.50. 
  • Balance Transfers: You may appreciate the low costs of transfers with the card that you currently have. Some of the fees used in many automated teller machines may charge a fee of up to 5% when you do a transfer, while the credit unions usually don’t charge anything.

Application Process

Like any other financial institution, your credit scores will be checked, and the reports will be read before you can extend the credit limits. However, if you got denied in the beginning, many unions may reconsider you and instead give you other requirements to help you approve your application.

Since the memberships are often exclusive to a single community, you are not just another face in the thousands of people they are dealing with every day. You will have a clear opportunity to explain your situation, and someone with good standing can vouch for you. Read more about a good credit standing here:

The bottom line is that if you can convince the company that you deserve to earn their trust, you’ll have a better shot at this than the major banks in the cities. You can also get secured cards that can give you a $500 limit from your deposits, helping you have a better financial standing. 

In many financial institutions, you may most likely be a part of over 40 million customers who are using the services online, adding with all the others who are depositing and withdrawing over the counter. Since the union has few customers, you will likely receive more outstanding service from the workers inside.

If you’re going through hardship, but you know that you have a chance for recovery, you can always ask for help from other members. With the offers like free resources, better financial education, and money management, you can learn a lot about how to manage your money. 

You can be given a tailored solution, and you’ll be presented with various options that will help you get out of your situation. Some can help you by buying products and services, and other members may recommend you to their networks, who can provide temporary help in the meantime.


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