Credit Union Credit Cards: Why They Beat The Competition
Published: July 25, 2023
Credit Union Credit Cards: 7 Reasons They Beat The Competition
1. Lower Rates
Credit unions offer lower interest rates and lower caps. The average APR for credit union credit cards is several percentage points lower than for bank credit cards. Interest rate caps are also lower, by government mandate, on services ranging from credit cards to home loans.
2. Fewer Fees
Credit card penalties from credit unions are considerably less, particularly in areas like overdraft fees or late penalties. The average credit union member pays $20 for late bills, while banks charge about $39. Cash advance fees are also at least five percent lower at credit unions.1
3. Reward Points
While most consumers sing the praises of low-rate credit union cards, credit union reward cards don’t get as much praise. However, credit union reward programs can be very compelling, offering very generous reward options (especially in comparison to their big bank counterparts).
4. Digital Banking
Credit unions provide members with the same if not better, digital banking experience as any large bank. Large banks might have had a head start but many credit unions quickly began using the same technology as bigger banks to provide members with a better banking experience.
Add your USSFCU cards to your mobile wallet, set card controls, deposit checks from your phone, and more. You'll feel at ease knowing you have secure and convenient access 24/7 to your account.
5. Account Security
Credit unions provide fraud protection to protect your personal and financial information from fraud and theft. When it comes to your finances, credit unions use the latest cybersecurity and best practices just like any other large bank. Credit unions partner with cybersecurity service providers and provide members with access to fraud prevention resources and important safety and security tips.
6. Financial Education
This is a hard truth and may be tough to hear, but banks benefit from people being financially uneducated. They profit when people do not understand how credit card debt racks up, how high-interest loans are likely to default, or how hidden fees can turn their bank account inside out.
With credit unions, that will be the opposite case. If the members of the credit union collectively provide too-good-to-be-true loans, and they allow their members to default on loans, the credit union would crumble.
7. Member Service
Credit unions have a reputation for offering great member service. If you’ve had to deal with larger banks in the past, you know that if you need assistance, waiting for someone to contact you can be a normal occurrence. Not with credit unions. We are invested in making the banking experience more convenient for you. This makes dealing with any credit card issues you might face more of a pleasant experience.
APR = Annual Percentage Rate. All loans are subject to credit approval.
This article is for informational purposes. Portions of its content were derived from 1: Credit Union National Association: Benefits Report 2023, www.kiplinger.com, www.powerfi.org, www.vfcu.net, www.missionfed.com, and www.nerdwallet.com. We do not endorse or guarantee the accuracy of third-party information.