Planning for a Bright, Financial Future

Getting a credit card from a credit union is a great way to borrow money without having to pay crazy interest rates. Credit unions are like banks in that they allow their members to borrow money with credit cards or loans from the available pooled deposit. Unlike banks, credit unions are owned by the members and are considered non-profit organizations. Because of this setup, there are many great benefits that come from getting money from a credit union. 

They are Generally Cheaper

Because they are run by members, credit unions do not have to charge high interest rates to make money and keep shareholders happy like public banks do. Instead, they are only worried about keeping their members happy so they generally keep the interest rates lower than credit cards from banks can match. Their interest rates are lower than bank credit cards, which can really add up over time. Also, most credit unions will not charge annual fees. In fact, it is suggested that only 10% of credit unions charge annual fees compared to the 45% of banks that do.

Customer Benefits and Customer Service

Credit unions often have special deals for new accounts. You can get an initial 0% APR to help you get your feet on the ground, or they can offer other deals that many banks would not be able to offer, such as 5% cashback. Because credit unions are controlled by the members, they generally like to connect to the surrounding community. This allows them to offer great customer service. They know that if they want to be successful on a local scale, they will have to offer help that is connected to what is happening in the community.

Downsides

Because they are member-owned, credit unions must be careful with who they lend money to. They do not have the same enormous infrastructure to help them out as a public bank does. It can be very difficult to get approved for a credit card from a credit union. If you have anything less than average credit, it is possible that you will be denied. They will also use your other accounts as collateral to ensure that you are not losing money that belongs to the other members of the credit union. Finally, they often offer lower credit limits, so you will not be able to borrow as much using a credit union credit card as you would using a public bank credit card.

Contact a credit union near you to learn more about getting a credit union credit card.